UNIVERSITY 

OF  CALIFORNIA 

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CORPORATION  LAWS 


OF  THE 


STATE  OF  CALIFORNIA 
1909 


(Fifth  Edition) 


Citations  are  taken  from  the  California  Rfioorts  up  to  and  including 
Volume  153,  and  from  the  California  Appellate  Reports  up  to  and  includ- 
ing Volume  7  thereof,  and  are  followed  by  later  citations  a»  they  occur  in 
cases  reported  in  the  "California  Decisions"  and  the  "California  Appellate 
Decisions"  (issued  by  "Recorder"  Co.,  San  Francisco)  up  to  June,  1909. 


COMPILED  BY 

CHARLES  FORREST  CURRY 

SECRETARY  OF  STATE 


S  A  C  R  A  M  K  N  T  O 

W.W.SHANNON Siipl.  ol  Stale  Printing 

1909 


s 

1^09 


PREFACE. 


Department  of  State, 

Sacramento,  California. 

The  fifth  edition  of  the  Corporatiou  Laws  of  California,  as 
compiled  by  this  department,  is  herewith  presented  to  the  pnblic. 

In  the  be.^inning,  the  design  of  this  publication  was  simply  to 
put  forth  a  compilation  of  the  laws  concerning  merely  the 
organization  and  government  of  private  corporations,  but  as 
subsequent  editions  were  issued  aud  the  demand  for  the  book 
increased  the  scope  of  the  work  has  been  enlarged,  and  in  addi- 
tion many  matters  have  been  included  which  are  of  general 
interest  as  relating  to  the  conduct  and  control  of  corporation 
business  and  affairs. 

With  the  enormous  growth  in  popularity  aud  general  use  of 
the  form  of  business  organization  known  as  the  corporation, 
legislation  concerning  such  organizations  has  increased  in  a  cor- 
responding degree.  Nearly  all  present  business  legislation  is  to 
some  extent  corporation  legislation.  While  the  scope  of  this 
work  has  been  considerably  enlarged,  yet  in  order  to  keep  it 
within  reasonable  bounds  the  subjects  included  have  been  con- 
fined to  those  matters  of  legislation  in  which  corporations  have 
l)een  specifically  named,  or,  where  not  named,  yet  the  regula- 
tions enacted  seem  to  have  been  especially  directed  at  private 
corporations.  Some  subjects  also  have  been  omitted  which 
are  handled  by  other  departments  of  the  state  government,  such 
as  regulations  of  dairy  products  or  pure  food  laws  which  come 
within  the  province  of  the  state  dairy  bureau  or  the  state  board 
of  health. 

First  of  all  are  given  those  portions  of  the  constitution  of 
California  which  seem  to  have  been  taken  as  foundation  stones 
upon  which  the  superstructure  of  our  corporation  law  has  been 
erected  by  the  various  legislatures  and  sustained  by  the  courts, 
.-Hid  which  seem  to  have  served  as  direction  or  authority  for 
such  legislative  or  judicial  action.  Next  are  given  those  por- 
tions of  the  codes  of  California  which  deal  with  corporatiou 
affairs,  and  after  that  the  statutes  at  large  which  deal  especially 
with  corpoi'ation  interests. 


The  edition  of  the  Corporation  Laws  of  1909  has  been  en- 
tirely revised  and  the  subject-matter  of  corporation  legislation 
thoroughly  gone  over  from  1850,  the  date  of  the  first  enactments 
in  this  state,  up  to  and  including  the  present  year.  This  has 
been  done  with  the  idea  of  giving  to  the  public  a  reliable  and 
complete  compilation  of  the  laws  which  are  alive  and  in  sound 
condition  as  to  constitutionality  at  the  present  time,  and  of 
general  interest  to  modern  corporations.  There  has  been  a  vast 
amount  of  corporation  legislation  enacted  in  the  past  which  has 
been  either  specifically  repealed  or  repealed  by  implication  or 
superseded  by  later  enactments.  A  large  number  of  statutes 
have  as  to  their  provisions  been  completely  transferred  to  the 
various  codes  by  recent  legislatures,  notably  during  the  sessions 
of  1905  and  1907,  and  these  statutes  so  codified  have  been 
eliminated  from  the  present  edition  as  having  served  their  pur- 
pose and  being  of  no  further  general  interest.  Other  statutes 
which  have  been  repealed  or  superseded  by  subsequent  acts, 
while  their  provisions  are  yet  in  force  to  a  greater  or  less  extent 
as  to  the  particular  corporations  which  were  organized  under 
their  authority,  yet  these  statutes  have  been  printed  in  former 
editions  for  the  benefit  of  such  corporations,  and  it  is  not 
thought  necessary  to  include  them  in  the  present  volume. 

No  attempt  has  been  made  at  annotation  in  the  nature  of 
comment  or  analysis,  as  such  work  is  considered  outside  the 
province  of  this  publication  and  as  encroaching  upon  the  domain 
of  private  publishers. 

The  proof  sheets  of  this  edition  have  been  carefully  read  and 
compai-ed  in  connection  with  the  official  statutes  of  the  year  in 
which  each  code  section  or  statute  was  enacted  or  amended,  and 
by  the  general  arrangement  of  the  compilation  it  has  been 
designed  to  be,  not  alone  of  value  and  assistance  to  lawyers  as 
a  useful  guide  and  an  authority  as  to  text,  but  it  has  also  been 
especially  intended  for  the  use  and  understanding  of  the  average 
non-professional  reader  who  is  interested  in  the  subject  of  mod- 
ein  corporation  legislation  in  this  state. 


Secretary  of  State. 


CONTENTS. 


CONSTITUTION  OF  CALIFORNIA. 

PORTIONS    RELATING    TO    PRIVATE   CORPORATIONS. 


ARTICLE    I. 

Declaration   of    Rights. 

Page. 

§  11.     Laws  to  be  uniform 1 

§  14.     Rights    of    private    property .' 2 

§  21.      Special  privileges,   limitations  on 2 

ARTICLE    IV. 
Legislative   Department. 

§  22.     Money,    how   appropriated;    how    drawn 3 

§25.     Local   and  special   legislation   forbidden 4 

§  26.      Lotteries    prohibited 5 

S  .31.     Public  credit  to  corporations  prohibited 6 

§  33.     Charges  by  certain  corporations,  regulation  of 6 

ARTICLE    X. 

State   Institutions  and   Public    Buildings. 

§     6.      Convict   labor "< 

ARTICLE    XI. 
Counties,    Cities,    and    Towns. 

§13.     Mimieipal    power   not   granted    by   legislature 7 

§  I614. Deposit  of  moneys  belonging  to  state,  county,  or  muni- 
cipality           7 

§  19.     LTse  of  streets  for  gas  and  water  pipes 8 

ARTICLE    XII. 

Corporations. 

§  1.  Corporations,   how  formed 10 

§  2.  Corporations,   dues  from 11 

§  3..  Corporation  stockholders  and  directors,  liability  of....  11 

§  4.  Corporations,   what  they  include 12 

§  5.  Banking     corporations ' 12 

§  6.  Existing  charters,   invalid  in  certain  cases 12 

§  7.  Franchises  or  charters  not  to  be  extended  by  legisla- 
ture.    Extension  of  corporate   existence 12 


vi  contents. 

Page. 

§    8.     Corporate  property  subject  to  eminent  domain 13 

§    9.     Limitation  on   business  of  corporations 13 

§10.     Liabilities  not   released  by   transfer  of  franchise 13 

§  11.     Issuance    of    stoclv 14 

§  12.     Elections   for   directors 14 

§  13.     State  credit  not  to  be  loaned 14 

§14.     Corporations  must  maintain  a  place  of  business 14 

§  15.     Foreign    corporations 15 

§  IG.     Corporations  may  be  sued,  where 15 

§  17.     Common    carriers 15 

§  18.     Limit  on  interest  of  an  officer  or  agent 16 

§  19.     Public  officers  not  to  receive  passes Ifi 

§  20.     Earnings  not  to  be  shared.     Rates  not  to  be  increased  16 

§  21.     Discrimination   forbidden 17 

§  22.     Railroad  commissioners.      Number,  election,  term,  quali- 
fications,   powers    and    duties,    how    removed    from 

office   17 

§  23.     Railroad  districts 19 

§  24.     Legislature  to  enforce  this  article 19 

ARTICLE    XIII. 
Revenue  and   Taxation. 

§    1.     Property  to  be  taxed  according  to  value — Exemptions.  19 

§    IV^.Cliurches   exempt   from    taxation 20 

§    4.     Taxation   of   mortgages   and   securities 21 

§    9.     State  and  county  boards  of  equalization 21 

§  10.     Property,  where  and  by  wliom  assessed 23 

§  11.     Income   taxes 23 

§13.     Legislature  to  pass  laws  to  enforce   taxation 23 

ARTICLE    XIV. 
Water   and   Water    Rights. 

§     1.      Subject  to  control  of  state 24 

§    2.     Right  to  collect  rates  is  a  franchise 25 

ARTICLE    XV. 
Harbor  Frontage,  etc. 

§     1.     Right  of  the  state  to  frontage 25 

§    2.     Access  to  navigable  wateis 25 

§    3.     Tide  lands 25 

ARTICLE    XVII. 

Land   and    Homestead    Exemption. 

§    2.     Large  land  holdings  discouraged 26 

ARTICLE    XIX. 

Chinese. 

§    2.     Corporations  not  to  employ  Chinese 26 


CIVIL   CODE. 


CIVIL  CODE. 

PORTIONS  RELATING  TO  PRIVATE  CORPORATIONS. 


Preliminary    Provisions. 


§    7.     Holidays    

§14.     Certain   terms  defined. 


Page. 

..      27 
..      28 


Title  I. 

II. 
III. 
IV. 

V. 
VI. 

VII. 

VIII. 

IX. 

X. 

XI. 
XIrt, 


XII. 


Xlla. 
XIII. 
XIV. 

XV. 

XVI. 

XVII. 

XVIII. 

XIX. 

XX. 

XXI. 

XXII. 


DIVISION    FIRST.     PART    IV. 
Corporations. 

General  provisions  applicable  to  all  corporations. 

§§  283-410. 
Insurance  corporations.      §§  414-453p. 
Railroad  corporations.     §§  454-494. 
Street  railroad  corporations.     §§  497-511. 
Wagon  road  corporations.     §§  512-524. 
Bridge,   ferry,   wharf,   chute,   and  pier  corporation.s. 

§§  528-531. 
Telegraph  and   telephone  corporation.s.      §§  536-540. 
Water  and  canal  corporations.     §§  548-552. 
Homestead  corporations.     §§  557-566. 
Savings  and  loan  and  banking  corporations.     §§  571- 

583b. 
Mining  corporations.     §§  586-590. 
Chambers  of  commerce,  boards  of  trade,  mechan- 
ics'   institutes,    and    other    kindred    associations. 

§§  591-592e. 
Religious,   social,  and  benevolent  corporations,  and 

other   corporations   not    organized   for   pecuniary 

profit.     §§  593-605. 
Cruelty  to  children  and  animahs.     §§  607-607^. 
Cemetery  corporations.     §§  608-616. 
Agricultural   fair   corporations.      §§  620-622. 
Corporations     to     furnish     light     for     public     use. 

§§  629-632. 
Building  and  loan  associations.      633-64 8n. 
Colleges  and  seminaries  of  learning.     §§  649-651. 
•Consolidation  of  colleges,  etc.     §§  652-653. 
Co-operative  business  corporations.     §  653a. 
Co-operative  business  associations.     §§  653b-653/. 
Non-profit    co-operative    agricultural,     viticultural, 

and  horticultural   associations.      §§  653wi-653s. 
Non-profit  co-operative  corporations.     §§  653<-653sZ>. 


Vin  CONTENTS. 

TITLE    I. 

General     Provisions    Applicable    to    All    Corporations. 

Chap.   I.     Formation  of  corporation.s.     §§  28;>-321b. 
II.     Corporate  stock.      §§  322-349. 
III.     Corporate  power.s.     §§  3.54-393. 

IV.      E.xtension  and  dissolution  of  corporations.     SS  399- 
403.      [Old  section  403  ;   repealed.] 
V.      General  provisions  affectins  corpor;i lions.      SS  403- 
404. 
XIl.      Foreign  corporations.     SS  405-41(1. 

CHAPTER    I. 

Formation    of    Corporations. 

Art.  I.      Cor]5orations    defined    and    liow    oi-ganized.       SS  2n::1- 
30  Off. 
II.      By-laws,  directors,  elections,  and  meetings.     §§  301- 
Z2lb. 

ARTICLE    I. 
Corporations  Defined  and   How  Organized.  Pace. 

^  2  83.      Corporation  defined 31 

S  284.     What   are   public   and   private   corporations 31 

S  28.5.     Private  corporations,  liow  formed 31 

S  2  86.      For  what  purpose  private  corporations  are  formed.  .  31 
S  287.     How  corporations  may  continue  their  existence  under 

this  code 32 

§  288.     B.xisting  corporations   not   affected 32 

S  289.      Name  of  instrument  creating  corporation 33 

S  290.      Articles  of  incorporation,   wliat  to  contain 33 

S  290o.   Certain  corporations  to  file  affidavit,  sliowing  wliat.  .  35 
S  290V^. Corporations  not  to  use  the  word  "trust"  in  corporate 

name   unless  authorized 3.5 

Ji  291.      Certain  corporations  to  state  further  facts  in  articles  36 

S  292.      Articles,  how  subscribed  and  acknowledged 36 

S  293.      Prerequisite    to    filing    articles    for    certain    corpora- 
tions ;  amounts  to  be  subscribed  to  be  fl-xed -6 

S  29 1.     Prerequisite    to    filing    articles    of    incorporation    foi- 

railroad,  telegraph,  and  wagon  road  corporations.  .  36 
S  29.5.     Oath  of  officer  to  Subscription  of  stock  and  payment 

of  ten  per  cent  in  ca.se  of  sucli  corporations 37 

S  296.      To    file    ar-ticles   with    county   clerk   and    secretary    of 

state,  and  receive  certificate.     Term  of  existence..  37 
S  297.     Certified  copy  of  certificate  to  be  prima  facie  evidence  38 
S  297a.  Restoration  of  lost  original  articles  of  incorporation  38 
§  29  8.     Who   are   members   and   who    stockholders   of   a   cor- 
poration     38 

§  299.      Corporation  to  file  articles  in   county   wliere   it  holds 

property 38 

§  300.      Banking  corporations  may  elec;t  to  have  capital  stock  4  0 

S  SOOrt.   Change  of  name  ;  filing  copy  of  decree II 


CIVIL   CODE.  IX 

ARTICLE    II. 

By-Laws,   Directors,   Elections,  and  IVleetings.  Page. 

§  301.     By-laws,  when,   how,  and  by  whom  adopted 42 

§  302.     Directors,  election  of,  notice,  etc 42 

§  303.      By-laws  may  provide   for  what 43 

§304.      By-laws  open  for  public   inspection;   how  amended..  43 

S  305.      Directors,  how  many  and  how  elected;  powers 44 

§  306.      Directors    must    be    elected    and    by-laws    adopted    at 

first  meeting.      [Repealed] 4.5 

§  307.      Elections,    how    conducted 45 

§  308.      Organization  of  board  of  directors,   etc 46 

§309.      Dividends  to  be  made  from   surplus  profits;   increase 

and  reduction  of  capital  stock •  4  6 

§  310.      Directors,  removal  from  office  of,  etc 4  8 

§  311.     Justice  of  the  peace  may  order  meeting,  when 49 

§312.      Elections,    how  stock  must  be   represented 49 

§  313.      Representation  of  minors,  insane,  or  deceased  persons  50 

§  314.     Election  may  be  postponed 50 

§  315.      Elections,    complaints    may    be    referred    to    superior 

court ;    relief -'^ 

§  316.      False    certificate,    report,    or    notice    to    make    officers 

liable 51 

§  317.     Meeting  by  consent  to  be  valid 52 

i  318.      Proceedings  at  such  meeting  to  be  binding 52 

§  319.      Meetings,  where  held 52 

§  320.     Special    meetings,    how    called 52 

§  321.      Banking  corporations  must   keep   certain   books   open 

for  inspection 52 

§  321«.  Change  of  principal  place  of  bu.siness,  how  effected.  .  53 
§  32 If).   Stockholders'    meetings,    wlio    may    vote,    and    use    of 

proxies "^^ 

CHAPTER    II. 

Corporate  Stock. 

Art.  I.     Stock   and    stockholders.      §§  322-329. 
II.      As.sessments  of  stock.     §§  331-349. 

ARTICLE    I. 
Stock    and    Stocklnolders. 

§  322.     Liabilities   of   stockholders.      They    may   be   relea.sed, 

when    55 

§  323.     Certificates,  how  and  when  Issued 57 

§324.      Shares     are     personal     property;     how     transferred; 

water   companies 5  8 

§  325.  Transfer  of  shares  held  by  married  women,  etc.  Divi- 
dends are   individual   property 58 

§  326.      Non-resident    stockliolders.       Bonds    required    before 

transfer •'•' 

§  327.      Contract  to   relieve  directors  void ••  .      59 

§  328.      New  or  duplicate  certificates  of  sliares  of  slock,  com-i 

may   oi'der  issue •'" 

§  329.      Lost    or    destroyed    bonds,    how    duplicates    may    l>c 

obtained.      Summons.      Judgment.      Indemnity 01 


§  331. 

§  332. 

§  333. 

S334. 

§  335. 

§  336. 

§  337. 

§  338. 

§  339. 

S  3*0. 

S  341. 

S  312. 

S  313. 

S  341. 

S  345. 

§  34G. 

S  347. 

§  348, 

CONTENTS. 

ARTICLE    II. 
Assessments  of  Stock.  Page. 

Directors  may  levy  assessment.s 63 

Ijimitation.     How  levied 63 

Levy  of  assessment.      Old  assessment  remaining  un- 
paid      64 

What  order  sliall  contain 64 

Notice  of  assessment.     Form 64 

Publication  and  service  of  notice 65 

Delinquent   notice.      Form 65 

Contents  of  notice 66 

How  published 66 

Jurisdiction  acquired,  how 66 

Sale  to  be  by  public  auction 66 

Highest  bidder  to  be  the  purchaser 67 

In  default  of  bidders,  corporation  may  purchase 67 

Disposition   of   stock    purchased    by    coi'poration 67 

Extension  of  time  of  delinqvient  sale 68 

Assessments  shall  not  be  invalidated 68 

Action  for  recovery  of  stock,  and  limitation  thereof.  .  68 
Affidavits   of  publication.     Affidavits  of  sale.      To  be 

filed    69 

§  349.     Waiver  of  sale.     Action  to  recover  assessment 69 

CHAPTER    III. 

Corporate   Powers. 

Art.   I.     General  powers.     §§  354-365. 
II.      Records.      §§  377-378. 

III.  Examination   of  corporations.      §§  382-384. 

IV.  Judgment  against  and  sale  of  corporate  property. 

§§388-393. 

ARTICLE    I. 

General    Powers. 

§  354.     Powers    of    corporations 70 

§  355.      Limitation  of  powers 71 

§356.     Issuing  or  circulating  paper  money  prohibited 71 

§  357.     Misnomer  does  not  Invalidate  instrument 72 

§  358.     Corporation  to  organize  within  one  year 72 

§  359.     Increasing  and   diminishing   capital   stock   or   bonded 

indebtedness,    how 72 

§  360.     Corporations    may    acquire    real    property,    and    how 

much    7  6 

§  361.     Consolidation  of  mining  companies  owning  adjoining 

claims.    [Repealed] 77 

§  36 1«.   Sale,  lease,  or  transfer  of  business  or  franchise 77 

8  362.     Articles  of  incorporation,  how  amended 78 

§  363.      Corporations  may  own  their  lots  and  buildings.      [Re- 
pealed]       79 

§  363.      Erroneous  filing  of  articles  of  incorporation,  how  cor- 
rected    79 

§  ?.64.      Sale  of  concessions  or  property  in  foreign  country.  .  .  80 

§  365.     Lost  or  destroyed  records 80 


CIVIL    CODE.  XI 

ARTICLE    II. 

Records.  Page. 

§  377.      Records,   of  what,   and  how  kept 83 

i  378.      Other  records   to   be   kept  by   coipoi-ations  for   profit, 

and    others 83 

ARTICLE    III. 
Examination  of  Corporations,  Etc. 
§  382.      E.\amination   into  affah-s   of   corporations,    how   m.Tdo 

by   offlcei'S  of   state 81 

§  383.     Examination  made  by  the  legishxture 84 

§384.     Chapter   and  article   may  be   repealed.    |  Repealed  |..      8.5 

ARTICLE    IV. 
Judgment  Against  and  Sale  of  Corporate  Property. 
S  388.     Franchise  may  be  treated  as  property,  and  sold  under 


execution 


S.f) 


§389.  Purchaser   to   transact  business  of   corporation 8<> 

§  390.  Purchaser  may  recover  penalties,  etc I^'i 

§  391.  Corporation  to  retain  powers  after  sale 8(i 

§  392.  Redemption    ^'' 

§  393.  Sale  under  execution,  where  made ^'i 

CHAPTER    IV. 
Extension  and   Dissolution   of   Corporations. 

§399.      Proceedings   to   disincorporate.      [Repealed] 87 

§  400.      On  dissolution,  directors  to  be  trustees  for  creditors.  .      87 

§401.      Extension  of  corporate  existence,   how  made 88 

§  4  02.  How  corporations  may  continue  their  existence.  [Re- 
pealed]        ^'-^ 

§  4  03.     Title   one   to   apply   to   all   corporations,   with   certain 

exceptions.     [Old  section  403  ;  repealed] 89 

CHAPTER   V. 
General    Provisions    Affecting    Corporations. 
§  4  03.      Title   one    to   apply   to   all    corporations,    with    certain 

exceptions    '^^ 

§  4  04.  Power  of  the  legislature  to  amend  or  repeal  this  part, 
or  any  title,  chapter,  article,  or  section  thereof, 
and  to  di-ssolve  all  corporations  created  thereundei-     9  0 

CHAPTER    VI. 
Foreign    Corporations. 

§  405.  Designation  of  person  on  whom  process  may  be 
served.  Service  on  the  secretary  of  state,  when 
valid     91 

§  406.  Foreign  corporations,  statute  of  limitations  in  favor 
of.  Proof  of  corporate  existence.  Change  of  desig- 
nation        91 

§  407.      Foreign  railway  corporations,  rights  of,   in  this  state      92 


xii  contenis. 

Page. 

S  408.      I'^oreign  corporations  to  file  certified  copies  of  articles 

of    incorporation 93 

§  409.      Foreign    corporations,    fees    to    be    paid    by,    on    filing 

certified  copies  of  articles  of  incorporation 93 

§  410.  Foreign  corporations,  penalty  for  failure  to  file  certi- 
fied copies  of  articles  of  incorporation 93 

TITLE    II. 

Insurance    Corporations. 

Chap.   I.     General  provisions.      SS  414-421. 

II.      Fire    and    marine    insurance    corporations.      §§  4  24- 
432. 
III.      Mutual    life,    health,    and    accident    insurance    cor- 
porations.     §§  437-452. 

IV.  Mutual  benefit  and  life  associations.     §§  4.52a-453. 

V.  To  discover  flre  and  save  property  and  human  life 

from   destruction  thereby.      §§  4  5 3a- 4 5  3c. 
VI.      Life,    health,   accident,    and  annuity  or  endowment 
insurance  on  the  assessment  plan.     §§  453d-453p. 

CHAPTER    I. 

General    Provisions. 

§  414.  Subscriptions  to  capital  stock  opened,  and  liow  col- 
lected     95 

S  415.      Purchase  and  conveyance  of  real  estate 95 

§  416.     Policies,  how  issued  and  by  whom  signed 96 

§  417.     Dividends,  of  what,  and  when  declared 96 

S  418.     Directors    liable    for    loss    on    insurance    in    certain 

cases    96 

§  419.      Capital  to  be  at  least  two  hundred  thousand  dollars. 

[Repealed]    96 

§  420.     Exception,   capital   of  one   hundred   thousand  dollars. 

[Repealed]     97 

§  421.     Investment  of  capital.      [Old  section  421  ;  repealed] .  .  97 

§  421.      Capital  and  accumulations,  how  invested 97 

CHAPTER    II. 
Fire,    IVlarine,   and    Title    Insurance   Corporations. 

§  124.      Payment  of  subscriptions.      Capital  to  be  all  paid  up 

in  twelve  months 99 

§  425.      Certificate   of  capital    stock   paid   \ip   to   be   filed,    and 

when 99 

§  426.      Property  which  may  be  insured 99 

S  427.     Funds  may  be  invested,  how.      [Repealed] 100 

§  42  8.      Limit  of  risk 100 

S  429.  Amounts  to  be  reserved  before  making  dividends.  .  .  .  100 
§  430.      Reservation    by    companies    with    less    than    $200,000 

capital    ; 100 

S43).      Amounts  to  be  reserved  by  life  insurance  companies. 

[Repealed]     1  "»1 

§432.      Corporations   for   insuiing   tith's   to   real   estate 101 


CIVIL   CODE.  XIII 

CHAPTER    III. 
Mutual    Life,    Health,    and    Accident    Insurance    Corporations. 

Page. 

§  437.      Capital  stock.      Guarantee  fund 102 

§  438.      Of  what  guarantee  fund  .shall  consist 103 

§439.      What  constitutes,   and  deficiency  in  fixed  capital....  10.'! 

§  440.     Declaration   of   fixed   capital   to   be   filed 104 

§  441.     Guarantee  notes  and  interest,  how  disposed  of 104 

§  442.     Insured  to  be  entitled  to  vote,  when 105 

§  443.      Number  of  directors  may  be  altered,  how 10.5 

§  444.      Investment     of     capital     stock,     in     what     securities. 

[Repealed]     105 

§  445.      Limitations    to    the    holding    of    stock    and    in    otlier 

particulars  may  be  provided  for  in  by-laws 105 

§  446.      Premiums,   how  payaVile 105 

§  447.  Insurance  corporations  to  furnish  data  to  insurance 
commissioner.  Employment  of  actuary.  [Re- 
pealed ] 105 

§448.      No   stamp   i-equired   on   accident    insurance   contraits. 

[Repealed]    100 

§  449.  Valuation  of  policies.  Retaliatory  provisions.  [Re- 
pealed]       lOG 

§  450.     Policy  to  contain  what  provisons 106 

§  451.      Fraternal     societies     exempt     from     insurance     laws. 

[Repealed]    107 

§  452.      Dividends,  how  and  wlien  made 107 

CHAPTER    IV. 

Mutual    Benefit    and    Life   Associations. 

§  452«.   Formation  of  tlie  association 108 

§  453.      Levying    of    assessments.       By-laws    wliich    may    be 

made '.  .    109 

CHAPTER   V. 
Corporations    to    Discover    Fire    and    Save    Property    and    Human 
Life  from  Destruction  Thereby. 

§  453a.  Powers  of  the  corporation 109 

§  453&.   Right    of   way    of   corporation    and    its    officers    when 

running  to  fires 110 

§  453c.  Yearly  meeting  of  corporation,  notice  to  be  given 
thereof,  and  proceedings  which  may  ':>e  authorized 
thereat   Ill 

CHAPTER    VI. 

Life,    Health,    Accident,    and    Annuity    or    Endowment    Insurance 
on   the   Assessment   Plan. 

§  453rf.   Contracts  which  may  be  made  by,  defined 113 

§  453r.   Formation   of  corporations;    issuing  of  contracts;    in- 

\'estment  s    Ill 

§  453/'.     Pre-existing  corporations,  right  of  to  reini'orporate .  .  114 

§  453(/.   Contracts  of  insurance,  contents  and  effect  of 115 


XIV  CONTENTS. 

Page. 

§  453/1.   Reserve  and  emergency  fund 115 

§  453i.    Foreign   corporations,    conditions   precedent   to    doing 

business  in   this  state 116 

§  453.7.    Limitations  upon  riglit  to  issue  contracts  of  insurance  117 

§  453fc.   Exemptions  from  attachment  and  execution 117 

§  4  53?.    Statements   to    be   filed    with    the    insurance    commis- 
sioner ;  proceedings  to  be  talten  by  him  tliereon.  ...    117 

§  453in.  Lapsing  of  policies,  when  forbidden 118 

§  45371.   Fees  and  penalties 119 

§  453o.   Insurance   commissioner    to   present   bills   for   certain 

expenses    119 

§  453J7.   Exemption  of  fraternal  societies  from  this  chapter..    119 

TITLE    III. 

Railroad    Corporations. 

Chap.  I.     Officers  and  corporate  stock.     §§  454-459. 
II.      Enumeration  of  powers.     §§  465-478. 
HI.     Business,   how  conducted.      §§  479-494. 

CHAPTER    I. 

Officers    and    Corporate    Stock. 

§  454.     Directors  to  be  elected,  when 120 

§  455.      Additional   provisions   in   assessment   and    transfer   of 

stock 120 

§  456.     Corporation    maj'    borrow    money    and    issue    bonds. 

Limitation  of  amount 121 

§  457.     To  provide  a  sinking  fund  to  pay  bonds 121 

§  458.     Capital  stock  to  be  fixed 122 

§  459.     Certificate  of  payment  of  fixed  capital  stock 122 

CHAPTER    II. 

Enumeration    of    Powers. 

§  4  65.      Enumeration    of   powers 123 

S  465o.   Motive  power,  what  authoriz(='d  to  use 125 

S  466.      Map  and  profile  to  be  filed 126 

S  467.     May  change  line  of  road 126 

S  468.     Construction  must  be  commenced  and  continued;  op- 
eration ;   forfeiture  of  franchise 126 

§  4  69.     Crossings  and  intersections.     Condemnation 127 

Jj  4  70.     Not  to  use  streets,  alleys,  or  water  in  cities  or  towns, 
except  by   a   two-thirds   vote   of   the   city   or   town 

authorities 128 

§  471.     Railroads   through   cities   not   to   charge   fare   to   and 

from  points  therein.     [Repealed] 128 

§472.      When  crossing  railroads  or  highways,  how  other  lands 

are    acquired 128 

S  473.     Corporations  may  consolidate.     Publication  of  notice. 

Copy  to  be  filed 129 

§  473«.   May  lease  or  use  whole  or  part  of  another  road.  .  .  .    130 
§  474.     State  lands  granted  for  use  of  corporations 131 


CIVIL   CODE.  XV 

Page. 

§  475.     Grant  not  to  embrace  town  lots 131 

§  476.     Wood,    stone,    and    earth    may    be    taken    from    state 

lands    131 

§  477.     Lands  revert  to  state,  when 131 

§  478.     Selections  made,  how  proved  and  certified  to 132 

CHAPTER    III. 

Business,    How    Conducted. 

§  479.     Checks  to  be  affixed  to  all  baggage.     Damages 132 

§  480.     Annual  report  to  be  verified.     Form  of  report 133 

§  481.     Duties  of  corporation 133 

§  482.     Corporation  to  pay  damages  for  refusal 134 

§  4  83.     Furnish  room   inside  passenger  cars,  and  be  respon- 
sible for   damages   occurring  on   freight  and  other 

cars 134 

§  4  84.     Corporations    to    post    printed    regulations,    and    not 

responsible  for  damages  in  violation  of  rules 135 

§  485.     Fences.     To    pay    damages.      Not    liable    in    certain 

(  cases.     Corporations  may  recover  damages,  when.  .  135 

§  486.     Regulations  of  trains.     Penalty 136 

§  487.     Passengers  refusing  to  pay  fare 136 

§  488.     Officers  to  wear  badge 136 

§  489.     Rates  of   charges 137 

§  490.     Passenger  tickets,  how  issued,  and  to  be  good  for  six 

months 138 

§  491.     Character  of  iron  rail  to  be  used 138 

§  492.     Elevated  or  underground  railways 138 

§  493.     To  apply  to  all  railroad  companies 139 

§  494.     Sale  of  property  to  another  railroad 139 

TITLE    IV. 

Street    Railroad    Corporations. 

§  497.     Authority  to  lay  street  railroad  track,  how  obtained.  .  141 
§  498.     Restrictions  and  limitations  to  the  grant  of  the  right 

of  way.      Manner   of  constructing   tracks 142 

§  499.     Two  corporations  may  use  the  same  track 142 

§  500.     Crossing  tracks.     Obstructions 143 

§  501.     Rates  of  fare,  brakes,  etc 143 

§  502.     Time  allowed  for  completion  of  work  of  laying  down 

track.      Penalty.      Extension   of   time 144 

§  503.     May  make  further  regulations  and  rules 144 

§  504.     Penalty  for  overcharging 145 

§  505.     To  provide  and  furnish  passenger  tickets.     Penalty..  145 

§  506.     Agency,  proof  of,  in  case  of  trial 145 

§  507.     City  or  town  to  reserve  certain  rights 14  6 

§  508.     License  to  be  paid  to  city  or  town 146 

§  509.      Track   for   grading  purposes 146 

S  510.     Wliat  provisions  of  title  III  are  applicable  to  street 

railroads    147 

§  511.     Title  applicable  to  natural  persons  alike  with  corpora- 
tions    147 


XVI  CONTENTS. 

TITLE    V. 

Wagon    Road    Corporations.  Page. 

§  512.     Wagon  roads,  how  must  be  laid  out 147 

§  513.  Survey  and  map  to  be  filed  and  approved  by  super- 
visors    148 

§  514.  Tolls,  etc.,  to  be  collected.  Penalty  for  taking  unlaw- 
ful tolls 148 

§  515.      No  tolls  to  be  charged  on  highways  or  public  roads.  .  149 

§  516.     Rates  of  toll  to  be  posted  at  gate 149 

§  517.     Toll-gatherer  may  detain  persons  until  they  pay  tolls  149 

§  518.     Toll-gatherer  not  to  detain  any  person  unreasonably.  150 

§  519.     Persons  avoiding  tolls  to  pay  Ave  dollars 150 

§520.      Penalties  for   trespass   on    property   of   corporation..  150 
§  521      When  capital  invested  is  repaid,   tolls  to  be  reduced, 

etc 150 

§  522.     May  mortgage  and  hypothecate  corporate  property.  .  151 
S  52  3.     This  title  applies  to  natural  persons  as  well  as  cor- 
porations    151 

§  524.      Municipal  corporations  inay  construct  patlis  and  roads 

for  use  of  bicycles  and  other  hor.seless  vehicles.  .  .  .  151 

TITLE    VI. 

Bridge,   Ferry,   Wharf,   Chute,   and   Pier   Corporations. 

§  528.     Corporation  to   obtain   license  from   supervisors 152 

§  529.     In  what  contingencies  corporate  existence  ceases.  ...    152 
§  530.     President  and  secretary  to  make  annual  report,   and 

what  to  contain.     Damages  for  failing  to  report..    153 
§  531.      This  title  to  apply  to  natural  persons  alike  with  cor- 
porations      154 

TITLE    VII. 
Telegraph    and    Telephone    Corporations. 

§  536.  May  use  right  of  way  along  waters,  roads,  and  high- 
ways      155 

§  537.  Liability  for  damaging  telegraph  or  telephone  prop- 
erty      155 

§  538.      Penalty  for  willfully  or  maliciously  injuring  telegraph 

or  telephone  property 155 

§  539.      Conditions  on  which  damage  to  subaqueous  cable  may 

be  recovered 155 

§  540.      May  dispose  of  certain  riglits 156 

TITLE    VIII. 
Water    and    Canal    Corporations. 
§  548.      Corporations   may    olitain    contract    to    supply    city    or 

town 156 

§  549.      Duties    of    corporation.      Rates    fixed    1)N'    supo-visors, 

etc if.e 

§  550.  Right  to  use  streets,  ways,  allc.vs,  and  roads.  [Re- 
pealed]         157 

§  551.      Public  highways  not  to  be  n))structed .    157 

§  r)r>2.      Iri-igntion.     Easement  and   water  rale.s 158 


CIVIL    OOnK.  XVII 

TITLE     IX. 
Homestead   Corporations.  Page. 

§  557.      Time   of  corporate  existence 158 

§  55  8.  By-laws  must  specify  time  for  and  amount  of  pay- 
ment of  installments,  and  penalty  for  failure  to 
pay.      By-laws  to  be  fui-nished  to  any  member  on 

demand 159 

§  559.      Advertisement    and    .'^ale   ot   delinciuent   and    forfeited 

■shares 159 

§  5(jO.      May    borrow    and    lo.-in    fund.s — how,    and    for    what 

time 159 

§561.      Minor  childrt^n,  wards,  and  mai'rled  women  may  own 

stock , ]  Cil 

§  5  62.  Forfeiture  for  specidating  in  or  owning  lands  exceed- 
ing two  hundred  thousand  dollars 16() 

§563.     When    corporation   is    terininated,    and   how.. 161 

§  564.     Payment  of  premiums 161 

§  565.     Annual  report  to  be  published 161 

§  566.     Publication  in   certain   cases 16:3 

TITLE    X. 
Savings   and    Loan   and    Banking    Corporations. 

§  571.     May  loan  money — on  what  terms,  how,  and  to  whom, 

and  how   long 162 

§  572.     Capital  stock,  and  rights  and  privileges  thereof 163 

§  573.  No  dividends,  except  from  surplus  profits.  To  con- 
tract no  liability,  except  for  deposits 163 

§  574.  Property  which  may  be  owned  by  corporations,  and 
how  disposed  of.  Restrictions  in  purchases  as  pro- 
vided above 163 

§  575.      Married  women   and  minors  may  own   stock   in   their 

own  right 164 

§  576.      May  issue  transferable  certificates  of  deposit.     Special 

certificates 165 

§  577.     To  provide  reserve  fund  for  the  payment  of  losses.  .  .    165 
§  578.     Prohibition  on  director  and  officer,  and  what  vacates 

office 166 

§  579.     Definition   of  phrase   "create   deists"    166 

§  580.      Capital  stock  retiuired.      [Repealed] 166 

§  581.     Amount  of  money  to  be  loaned  on  real  estate,  limited  166 
§  582.      Persons  not  incorporated  must  show  true  names,  etc.    166 

§  583.     Dividends,  how  and  when  declared 167 

§  583rt.   Capital   stock  required   to  be   advertised 167 

§  583&.  Unclaimed   deposits.      Statement   required 168 

TITLE    XI. 
Mining   Corporations. 

§  586.     Transfer    agencies 169 

§  587.     Stock  issued  at  transfer  agencies 170 

§  587a.   Consolidation  of  mining  corporations 170 

§  588.      Books   and   balance    sheets    to   be    kept   by    secret  a r'y. 

Stockholders'  right  to  inspect 171 

§589.      Right  of  stockholders  to  visit  mine   with   expert 172 

§  590.     Liability  of  president  and  directors 173 


XVin  CONTENTS. 


TITLE  XIa. 


Corporations  for  the  Formation  of  Chambers  of  Commerce, 
Boards  of  Trade,    IVIechanics'    Institutes,   and   Other 

Kindred  Associations.  Page. 

§  591.     Formation,   organization,   and  powers  of 174 

§  592.     Capital   stoclc  and  certificates  of 175 

§  592a.  Powers    which    may    be    conferred    on    the    trustees, 

directors,   or   tlie   executive   committee 175 

§5925.   Power  to  acquire,  sell,  possess,  and  use  property....  175 

§  592f.  The    by-laws _ 176 

§  592d.  Power  to  levy  and  collect  assessments 176 

§  592e.   Pre-existing  corporations  may  become  entitled  to  the 

benefit  of  this  title 176 

TITLE    XII. 

Religious,    Social,    and    Benevolent    Corporations,    and    Other 

Corporations  Not  Organized  for  Pecuniary  Profit. 

§  593.     Formation  of  corporations  not  for  profit — number  of 

directors    177 

§  594.     Additional  facts,  articles  of  incorporation  to  set  out.  178 

§  595.     Amount  of  real  estate  limited 178 

§596.     Land  held  by  friendly   societies  and  pioneers 179 

§597.     Directors  to  make  verified  report  annually 179 

§  598.     Sale  and  mortgage  of  real  estate 179 

§599.     What  may  be  provided  for   in  their  by-laws,   etc 180 

§  600.     Members  admitted  after  incorporation 181 

§  601.     No  member  to  transfer  membership,  etc 181 

§602.     Religious  societies  may  become  sole  corporations....  181 

§  602a.   Corporations  sole,  continuous  existence 183 

§  603.     Churches  and  religious  societies,  how  incorporated.  .  .  183 

§604.     Same     1^4 

§  605.     Consolidation  of  like  corporations  organized  for  pur- 
poses other  than  profit 185 

TITLE    Xlla. 
Societies  for  the  Prevention  of  Cruelty  to  Children  and  Animals. 

§  607.     Formation    of    corporations 187 

§  607a.  Power  of  to  receive  and  dispose  of  property 187 

§  607 &.   Complaints  for  violating  any  law  relating  to  children 

or   animals 1°' 

I  607c.   Magistrates  and  police  officers  to  aid  the  corporation 

and   its  officers 188 

§  607d.  Pre-existing    corporations 1^° 

§  607e.   Fines,   penalties,   and  forfeitures,   and  the  disposition 

to  be  made  thereof 188 

§  607/^.    Members   and   agents   may    be   authorized   to   act    as 

police    officers • ^89 

§  607f7.  Children  who  may  be  arrested  and  brought  before  a 

court  or  magistrate   for  examination UO 


CIVIL   CODE.  XIX 

TITLE    XIII. 

Cemetery   Corporations.  Page. 

§  608.     How  much  land  may  be  held,  and  how  disposed  of.  .  191 

§  609.  Who  are  members  eligible  to  vote  and  hold  office.  . .  .  192 
§  610.     May  hold  personal  property,   to  what  amount.     How 

disposed  of 192 

§  611.     May   issue   bonds   to   pay   for   grounds.      Proceeds   of 

sales,   how  disposed  of 192 

§  612.     May   take  and  hold  property  or  use   income   thereof, 

how    193 

§  613.     Interments    in    lot    and    effect    thereof.      Transfer    of 

rights  only  made,  how 193 

§  614.     Lot   owners  previous  to   purchase   to  be  members   of 

the  corporation    194 

S  615.     May  sell   lands,   how 194 

§  616.     May  hold  property.     Income,  how  applied 194 

TITLE    XIV. 
Agricultural    Fair    Corporations. 

§  620.     May  acquire  and  hold  real  estate,  how  much 195 

§  621.     Shall     not    contract     debts     or     liabilities     exceeding 

amount  in  treasury 195 

§  622.     Not  for  profit.     May  fix  fee,   etc.,   for  membership.  .  196 

TITLE    XV. 

Corporations    to    Furnish    Liglit    for    Public    Use. 

§  629.     Duty  to  furnish  gas  or  electricity 196 

§  630.     When   corporations  may   refuse   to   supply   gas 197 

§  630a.  When  corporations  may  refuse  to  supply  electric  cur- 
rent for  light 197 

§  631.     Right  to  enter  buildings  for  inspection 198 

§  632.     Right  to  shut  off  supply  of  gas  or  electricity 198 

TITLE    XVI. 
Building    and    Loan   Associations. 

§  633.      Formation,   powers,  and  organization 199 

§  634.      Capital    stock   200 

§  635.      Retiring   free   shares 201 

§  636.     Maturity  of  stock 202 

§  637.      Loan.s.      Prohibitions.      Penaltie.s 202 

S  638.      Interest.      Securities.     Repayment  of  loans 203 

§  639.      Arrears  in  payments.      Default.      Forfeitures 203 

S  640.      Purchase   of  real  estate 204 

§  641.     Profits  and  losses 204 

§  642.      Withdrawals     205 

§  643.     Membership     205 

§  644.      State  supervision  and  control 206 

§  645.     Annual   report 206 

S  64  6.      Foreign   corporations,    deposit  by 207 

§  647.      Investment  in  and  loans  upon  bonds 207 

§  648.     Definition  of  building  and  loan  associations 207 

§  648a.  Formation  of  building  and  loan   associations.     Rein- 
corporation of  existing  associations 208 


XX  CONTENTS. 

TITLE    XVII. 

Colleges  and  Seminaries  of  Learning.  Page. 

S  64;:>.      How    incorporated 209 

§  6.50.      Term  and  power  of  trustees 209 

S  6-51.     Reincorporation  of  existing  corporations 210 

TITLE    XVm. 
Consolidation   of   Colleges  and    Institutions  of   Higher    Education. 

§  652.      Societies  and  organizations  authorized  to  consolidate. 

Trustees.      Annual  reports 211 

§  653.      Transfer  of  property.     Indebtedness.     Specific  grants. 

Dissolution    212 

TITLE  XIX. 
Co-operative  Business  Corporations. 

S  653«.   Purposes  for  wliicli  may  be  formed 213 

TITLE    XX. 

Co-operative    Business    Associations. 

§  653&.   Formation   and   purposes    of 214 

§  653c.   Rights,   interests,   and  liabilities  of  members 214 

§  653rf.   Tlie   articles  of  association 215 

§  653e.   The    by-laws 215 

§  GaSf.    Execution  against  the  association  or  its  members.  .  .  217 

Sj  653*7.  Purposes  of  the  association,  liow  may  be  altered.  .  .  .  217 

§  6537t.  Powers  of  the   association 217 

§  65 3i.    Consolidation    of    associations 218 

S  653i.    Dissolution  and  winding  up  of  association 219 

S  65  3fc.  Quo  warranto  to  inquire  into  tlie  riglit  of  an  associa- 
tion  to   do   business 219 

§  653?.    What  corporations  or  associations  are  not  affected  by 

this   title 219 

TITLE    XXI. 

Non-Profit,  Co-operative  Agricultural,   Viticultural   and 

Horticultural   Associations. 

§  653«i.  Formation  and  pui  poses  of 220 

§  653n.   Membership    . 220 

S  653o.   Articles   of   incorporation 221 

§  653p.   By-laws    222 

§  653gf.   Powers   of   association 223 

§  653r.   Amendment  of  articles  of  incorporation 224 

§  653s.  Quo    warranto 225 

TITLE    XXII. 

Non-Profit    Co-operative    Corporations. 

§  653t.    Formation  and  purposes  of 225 

§  653i*.  iVIemtaersliip 226 

§  653a;.  Articles   of   incorporation 226 

§  653m?.  By-laws    227 


civil  code.  xxi 

Page. 

653a;.  Powers  of  corporation 228 

6531/.  Amendment  of  articles  of  incorporation 229 

653«.  Quo  warranto 230 

653«a.Particular   corporations 230 

653«b.Voting    230 


DIVISION     SECOND.      PART    I. 
Property   in    General. 

TITLE    I. 
Nature   of    Property. 

654.  Property,    what 231 

655.  In  what  property  may  exi.st 231 

PART    III. 
Personal    or    Movable    Property. 

TITLE    II. 
Particular    Kinds    of    Personal    Property. 

CHAPTER    IV. 
Other   Kinds  of  Personal   Property. 

991.     Trade-marlts 232 

PART   IV. 
Acquisition    of    Property. 

TITLE    IV. 

Transfer. 

CHAPTER    IV. 
Recording   Transfers. 

ARTICLE    I. 
What   May    Be    Recorded. 

t  1161.     Acknowledgment  of   instrument  by   a  person  ;    by   a 

coi'poration    ; 233 

i  1163.     Residence    recorded    for    the    purpose    of    service  -of 

summons.      Pee.      Index 2  34 

ARTICLE   III. 

Proof  and   Acknowledgment   of   Instruments. 

1185.     Requisites   for   acknowledgment   or   proof   of   instru- 
ment         234 

i  1190.     Form  of  acknowledgment  by  corporation 235 


XXn  CONTENTS. 

TITLE   VI. 
Wills. 

CHAPTER    I. 
Execution   and    Revocation    of   Wills.  Page. 

§  1275.     Who  may  take  by  will 236 

§1313.      Restriction   on  devise   for  charitable   purposes 236 

TITLE    X. 
Location  of  Mining  Claims,  Tunnel  Rights  and  Mill  Sites. 

§  1426.      Lode   claims,    how   located 237 

§  1426a.   Boundaries    238 

§  1426b.   Record  of  location,   lode  claim 238 

§  1426c.   Placer  claim,   location  of 238 

§  1426(L   Record  of  location,   placer  claim 239 

§  1426e.   Tunnel  right,  location  of 239 

§  1426f.    Boundaries  of   tunnel   location 239 

§  1426(r/.  Record  of  location,   tunnel  claim 240 

8  1426/t.  Amended  notice  of  mining  claim 240 

S  1426;.    Surveyed    claims 240 

S  1426y.    Mill  site,   location  of 241 

§  1426fc.  Record  of  location,  mill  site 241 

§  1426Z.    Yearly  work  required,   mining  claim 241 

§  1426»i.  Record   of   work 241 

§  1426?i.  Recorder's    fee 242 

§  1426o.   Delinquent  co-owners,  notice   to  ;  payment  by  delin- 
quents      242 

§  14262-'.   Records  to  be  received  in  evidence 243 

§  1426Qf.   Copies  of  records  as  evidence 243 

§  1426r.    Effect  on  mining  districts 244 

§  1426s.    Neglect  to  perform  development  work 244 


DIVISION    THIRD.      PART    IV. 
Obligations  Arising  from   Particular  Transactions. 

TITLE    I. 
Sale. 

CHAPTER    II. 
Rights  and   Obligations  of  the  Seller. 

•     ARTICLE    III. 
Warranty. 

§  1772.     Trade-marks    24.5 

S  1773.      Other    marks 245 

TITLE    III. 
Deposit. 

CHAPTER    II. 
Deposit  for   Keeping. 


CIVIL    CODE.  XXIII 

CHAPTER   [Article]    lllo. 

Warehousemen.  Page. 

§1858.     Warehouse  receipts,  when  must  not  be   issued 246 

§  1858a.   Property    not    to    be    removed    witliout    consent    in 

writing    246 

§  18586.  Warehouse  receipts,   classification  and  effect  of .  .  .  .    247 
i  1858c.    Endorsement   on   negotiable   receipt  of  property   de- 
livered        247 

§  1858d.  Negotiable  receipts  and  their  effect 247 

§  1858e.    Liability  for  loss  by  fire 248 

§  1858/".    Penalties  and   liabilities 24  8 

TITLE   VII. 
Carriage. 

CHAPTER  V. 

Common  Carriers. 

Art.  I.  Common  carriers  in  general.     §§  2168-2177. 

II.  Common  carriers  of  persons.     §§  2180-2191. 

III.  Common  carriers  of  property.     §§  2194-2204. 

IV.  Common  carriers  of  messages.     S§  2207-2209. 

ARTICLE    I. 

Common   Carriers   in    General. 

§  2168.      Common   carrier,    what 249 

§  2169.      Obligation  to  accept   freight 249 

§  2170.     Obligation   not  to   give  preference 249 

§  2171.     What  preferences  he  must  give 250 

§  2172.      Starting     250 

§  2173.      Compensation 250 

§2174.  Obligations  of  carrier  altered  only  by  agreement..  250 

§  2175.      Certain    agreements   void 250 

§  2176.      Effect  of  written  contract 251 

§  2177.     Loss  of  valuable  letters 251 

ARTICLE    II. 

Common   Carriers  of   Persons. 

§  2180.     Obligation  to  carry  luggage 251 

§  2181.      Luggage,  what.      Bicycles 252 

§  2182.      Liability  for  luggage 252 

§  2183.      Luggage,   how   carried  and   delivered 252 

§  2184.      Obligation   to  provide   vehicles 253 

§  2185.      Seats  for  passengers 253 

§  2186.     Regulations  for  conduct  of  business 253 

§  2187.     Fare,    when    payable 253 

§  2188.      Ejection  of  passengers 253 

§  2189.     Passenger  wlio  has  not  paid  fare 253 

§  2190.     Fare  not  payable  after  ejection 254 

§  2191.     Carrier's  lien 254 


XXIV  CONTENTS. 

ARTICLE    III. 

Common    Carriers   of    Property.  Page. 

§  2194.     Liability  of  inland  carriers  for  los.s 254 

§  2195.     When  exemptions  do  not  apply 255 

§  2196.      Liability   for   delay 255 

§  2197.     Liability  of  marine  carriers 255 

§2198.      Same    255 

§  2199.     Perils  of  sea,   what 255 

§  2200.     Consignor  of  valuables  to  declare  their  nature 256 

S  2201.      Delivery  of  freight  beyond  usual  route 256 

§  2202.     Proof  to  be  given  in  case  of  loss 256 

§  2203.     Carrier's  services,  other  than  carriage  and  delivery.  256 

§  2204.      Sale  of  perishable  property  for  freight 256 

ARTICLE    IV. 

Common    Carriers   of    Messages. 

§  2207.      Order  of  transmission  of  telegraphic  messages 257 

§  2208.     Order  in  other  cases 257 

§  2209.      Damages  when  message  is  refused  or  postponed.  .  .  .  257 


POLITICAL  CODE. 

PORTIONS  RELATING  TO  PRIVATE  CORPORATIONS. 


Preliminary   Provisions. 

§  10.     Holidays    25  8 

§  11.      Same 259 

§  17.     Words  and   terms   used    in    the    Political    Code,    defini- 
tion  of 259 

PART   III. 
Of  the   Government  of  the   State. 

TITLE    I. 
Public   Officers. 

CHAPTER    III. 
Executive    Officers. 

ARTICLE    III. 

Of   the   Governor. 

§  380.     General  duties 260 

ARTICLE   V. 

Of  the  Secretary  of  State. 

§  416.     Pees   261 


POLITICAL    CODE.  XXV 

ARTICLE   XVI. 

Insurance   Commissioner. 

Page. 

§  588.      Eligibility    265 

§  589.      Salary    265 

§  591.      Rooms.      Expen.ses.      Special   fund 265 

§  592.      Office    265 

§593.      Bond 266 

§  594.     Insurance   classified 266 

§  594a.  Foreign  companies,  deposit  of  securities 269 

§  595.     General    duties    of    commissionei-.       Companies    may 

surrender  certificate  ;   manner  of 270 

§  596.  Certificate  to  do  business.  Licenses  to  procure  in- 
surance in  companies  not  authorized  to  do  bu.si- 
ness.  Affidavit  required.  Account  of  business.  Bond 
of    licensee.      Examination    of    policies    issued    by 

licensee    272 

§  596a.   Attorney  general  to  examine  documents 274 

§  597.     Examination    of    companies    alleged    to    be    insolvent. 

Inspection  of  books 274 

§  598.  Policyholders  may  secure  information  about  policies. 
Company  must  make  statement.     Lost  policy,  .slriy 

of  i-ights 275 

S  599.      SubjicEna    276 

S  600.      Records   of   commission 276 

§  600a.   Restoration     of     authority     after     ii'Vucatiun.        Li^<- 

pealed] 27  6 

§  601.      Employment  of  actuary 277 

§  602.     What  constitutes  insolvency 277 

§  602a.   ¥Iow  condition  of  company  shall  be  estimated.      How 

reserve   to  be  computed 278 

§  603.  Insolvent  companies,  notice  of  revocation  of  certi- 
ficate      280 

§  603o.   Restoration  of  authority  after  revocation 281 

§  604.     Report  to  attorney  general 281 

§  604rt.   Insolvency  proceedings 282 

§  605.      Fees  of  commissioner 282 

§  606.      Assessments    283 

§  607.      What  papers  companies  must  file  with  commissioner   283 
§  608.      Actions  not  to  be  transferred  to  United  States  courts  284 

§  609.     Approval  of  name  of  company 285 

S  610.      Statements    to    be    verified 285 

§  611.     Annual  statements  of  companies 285 

S  612.      What  statements  must  show 285 

S  613.      Statements  of  life,   health,   and  accident  companies.  .    287 

§  614.      Mutual  companies 289 

§  615.      Forms  of  statements  to  be  furnished 289 

§  616.      Foreign    companies    must    designate    name    of    agent. 

Stipulation.      Service  of  process 290 

§  617.      Penalty  for  failure  to  file  statements 291 

§  618.      When  laws  of  other  states  require  trust  deposit,  duty 

of  commissioner.     Special  deposit  in  state  treasury  291 

2a — c 


xxvi  contents. 

Page. 

g  61!).     Certificate  of  deposit 292 

S  620.      Witlidrawal   of  deposit 292 

t(  621.     Annual  examination  of  securities 293 

§  622.     Relative  to  laws  of  other  states 293 

S  622rt.   Tax  on  gross  premiums,   other  than  California  com- 
panies    294 

S  623.     Bond  required 294 

S  624.      Same    295 

S  625.  Commissioner  to  furnish  data  to  county  assessors.  .  .  295 
S  625o.   List    of    surety    companies    to    be    furnished    county 

clerks.     What  list  shall  show 295 

S  626.     Full  compliance  of  law  required 296 

*i  627.     Payments  to  be  on  gold  basis 296 

S  628.      Separate  valuation  of  policies 296 

S  629.     Life    companies   must   furnish   data   for    valuation   of 

policies.     Basis  of  valuation 297 

S  630.     Fraternal  societies  exempt 298 

S  631.     Right  of  action  against  commissioner 298 

§  631a.   Publication  of  notice  of  withdrawal . 298 

S  632.     District  attorney  to  be  notified  of  penal  offense 299 

S  633.     Agents  must  file  duplicate  power  of  attorney 299 

§  634.     Registration    of    life    policies — Special    deposit — Ex- 
cess of  securities 300 

S  634rt.   Definition  of  certain  words 301 

S  634&.   Penalties  payable  on  demand 301 

ARTICLE   XVI'/2- 

Investment    Companies. 

S  635(6.   Investment   company   defined 302 

S  635b.   Investment  companies  not  licensed  by  bank  or  other 

commissioners.     Deposit  with   state  treasurer  cash 

or   securities 302 

§  635c.   Articles  of  incorporation  to  be  filed  with  secretary  of 

state.      Fees.      Statement 303 

§  635d.  Duty  of  state  treasurer.  Duty  of  attorney  general..  304 
§  635e.  Withdrawal  of  deposit  upon  ceasing  to  do  business.  .    304 

§  635/".    Right  to  substitute  securities  for  cash  deposit 305 

§  635£r.  Amount  of  money  to  be  loaned  out  of  reserve  fund. 

Collateral  may  be  deposited  with  treasurer 305 

§  635/1.  Reserve    fund 306 

S  6351    Duty  of  attorney  general 306 

S  635y.    Violation  of  the  provisions  of  this  act;  penalty 307 

§  635fc.  Not  to  do  business  until  deposit  is  made 307 

§  635/.    Application   307 


CHAPTER   VII. 
General    Provisions   Relating  to   Different   Classes  of  Officers. 

ARTICLE    IX. 
Bonds  of   Officers. 

§  955.     Justification  of  sureties 308 

§  956.      Sureties  for  less  than  the  penal  sum 308 


POLITICAL    CODE.  XXVII 

TITLE   VI. 
Public  Ways. 

CHAPTER    I. 
Public    Waters. 

ARTICLE    IX. 
San    Francisco    Harbor   and    State    Harbor   Commissioners. 

Pace. 
§  2524a.   Power   of  state  harbor   commissioners   to   set  apart 

property  for  aquatic  sports J^'Mt 

CHAPTER    II. 
Highways. 

ARTICLE    I. 

Enumeration    of    Highways. 

§  2619.      Expiration  of  franchises .310 

ARTICLE   V. 

Performance   of    Highway    Labor   and    Commutation. 

§  2671.     Employers    responsible    for    road    poll    tax    asses.sed 

against  employees 3 Hi 

ARTICLE   VI. 

Laying   out,   Altering,   and    Discontinuing    Roads. 

§  2694.     Roads  crossing  railroads,  canals,  and  ditches 311 

CHAPTER    III. 

Toll    Roads. 

Art.  I.     Construction  of  toll  roads.     §§  2779-2802. 

II.      Use  of  toll  roads,  and  obstructions  thereon.     §S  2  814- 
2817. 
III.      Inspection  and  repairs.      §S  2827-2S.S2. 

ARTICLE    I. 

Construction    of   Toll    Roads. 

§  2779.  Notice  of  and  application  to  construct  the  road.  .  .  .  312 

§  2780.  Special  meeting  of  supervisors 312 

§  2781.  Hearing  the   application 313 

§  2782.  Action   of   supervisors 313 

§  2783.  Commissioners,  how^  appointed  for  other  counties.  .  .  313 

§  2784.  Laying  out  the  road 313 

§  2785.  Compensation   of  commissioners,    map   and   report.  .  314 

§  2786.  Branches  and  extensions 314 

§  2787.  Acquiring  lands  by  grant 314 

§  2788.  Appropriation  of  damages  for  highways  taken 314 


xxviii  contents. 

Page. 

§  2789.     Application,  when  unnecessary 315 

§  2790.     Orchards  and  gardens 315 

§  2791.     Bridging   streams 315 

§  2792.     One  road  corporation  using  the  roadbed  of  anotlier.  315 

§  2793.     How  to  be  constructed 315 

§  2794.     May  relay  with  what 316 

§  2795.     Milestones  and  posts 316 

§  2796.     Guide-posts 316 

§  2797.     Inspection,   certificate,  and  completion 316 

§  2798.      Erection  of  gates,  etc 317 

§2799.     Abandonment  of  road,  and  wliat  becomes  of  it....  317 

§  2800.     County  may  purcliase  road,  liow 317 

§  2801.      Appraisement  and  award,  how  made 318 

§  2802.     Provisions  apply  to  all  toll  roads 318 

ARTICLE    II. 

Use   of   Toll    Roads,    and    Obstructions    Thereon. 

§  2814.     Persons  exempt  from  tolls 318 

§  2815.     Encroachments,   how  removed 319 

§  2816.     Who  liable  for  penalty,  and  what 319 

§  2817.     Action  for  penalty  or  trespass 320 

ARTICLE    III. 

Inspection    and    Repairs. 

§  2827.      Inspection  of  roads,  and  repairs 320 

§  2828.     Closing  gates,   and  penalty 320 

§  2829.     Defects  in  roads  to  be  reported  to  wliom 321 

§2830.     Enforcing  obedience  to   notice  and   refiuiremont .  .  .  .  321 

§  2831.     Fees  of  commissioner  or  overseer 321 

§  2832.     Pack-trails   in   mountain   districts 321 

CHAPTER    IV. 

Public   Ferries  and   Toll    Bridges. 

Art.  I.     General  provision.s.     §§  2843-2858. 
II.     Toll  bridges.      §§  2870-2881. 
III.      Toll  ferrie.s.      §§  2892-2895. 

ARTICLE    I. 

General    Provisions. 

§2843.      What  Ijoard  to  grant    Mulliority   tn  conslruct 322 

§  2844.      Notice  must  be  pi-ovcd 323 

§  2845.     Duty  of  board  of  supervisors  gi-anting  authority...  323 

§  284  6.     License  tax  and  rate  of  tolls,  liow  fixed 323 

§  2847.     Report  of  bridge  or  ferry  owner  or  keeper 324 

§  2  84  8.      Inquiry  of  board  of  supervisors  fixing  tolls 324 

§  2849.     When   to   direct   license   to   issue 325 

§  2850.     Bond,  conditions  and  execution 325 

§  2851.     When  bridge  unites  two  counties 325 

§2852.     Supervisors  shall   not  act  if  interested 325 

§  2853.     Toll    bridge    or    ferry    within    one    mile    of    another, 

when    326 


political  code.  xxix 

Page. 
§  2854.  Owner  of  land  preferred  to  build  bridge  or  ferry.  . .  326 
§  2855.     How  lands  are  acquired  for  use  of  bridge  or  ferry.  .    326 

§  2856.     Must  post   rates  of   toll 326 

§  2857.     Revenue  derived  from  license,  how  disposed  of 326 

§  2858.     To  keep  banks  in  repair 327 

ARTICLE    II. 

Toll    Bridges. 

§  2870.     Application  for  leave  to  construct 327 

§  2871.     Hearing    application 328 

§  2  872.     Action  of  board  of  supervisors 328 

§  2873.     What  board  of  supervisors  may  require 328 

§  2874.     Use  of  highways 328 

§  2875.     How  constructed  over  navigable  waters 329 

§  2876.     Supervisors  may  regulate 329 

§  2877.  Channel   of  streams  navigable   by   rafts  to   be  kept 

clear 329 

§  2878.  Completion  of  bridge,  rate  of  toll,  and  license  tax..  329 

!?  2879.     Persons  exempt 330 

§  2880.     Penalty  for  avoiding  tolls 330 

§  2881.     County  may  purchase  toll  bridge 330 

ARTICLE    III. 

Toll    Ferries. 

§  2  892.     Application  for  leave  to  erect,  and  notice 330 

§  2893.     Duty  of  board  of  supervisors 331 

15  2894.      Powers  of  boards  of  supervisors 331 

§  2895.     Penalties;,  how  disposed  of 332 

CHAPTER   V. 
Wharves,  Chutes,  and  Piers. 

§  2906.      Board  of  supervisors  to  authorize  construction 332 

§2907.      Application,  what  to  contain  and  how  made 333 

§  2908.     Petition  relative  to  lands  not  owned  by  applicant.  .  .  333 

§  2909.      Notice  served  on  non-residents 333 

§  2910.     Board  to  hear  proof,  and  may  grant  autliority 334 

S  2911.     Overflowed  or  tide   lands  granted 334 

§  2912.     One  hundred  and   fifty  feet  on  each   side  of  wharf,  ' 

etc 334 

§  2913.     How  to  obtain  u.se  of  lands 334 

§  2914.     Dimensions  of  wharves,  chutes,  or  piers 335 

§  2915.     Franchise,  what  to  constitute 335 

§  2916.     Board  of  supervisors  to  fix  rate  of  tolls,  etc 335 

§  2917.     License,  and  the  tax  for 336 

§  2918.     To  keep  in  good  repair 336 

S  2919.      Restrictions  on   gi-anting  authority 336 

S  2920.      Cities  and  towns  exempted  and  autlmrizoil 336 

S  2921.      Granting  raihoMil  ii.t;hl   tn  conslruct 336 

CHAPTER    VI. 

Miscellaneous   Provisions   Relating  to  Public  Ways. 

§  2938.     Protection  of  bridges 337 


CONTENTS. 


TITLE   VII. 
General    Police  of  the   State. 

CHAPTER   VI. 
Lost  and  Unclaimed  Property. 

ARTICLE    II. 
Unclaimed    Property. 

Page. 

§  3152.     Goods  may  be  retained  until  charges  paid 338 

§  3153.     Property  unclaimed  within  sixty  days  to  be  sold.  .  .  338 

§  3154.     Proceeds  unclaimed,  where  to  go 339 

§  3155.     Carrier's  responsibility   ceases,   when 339 

§  3156.     Property    upon   which   advances   are    made    may    be 

sold 339 

§  3157.     Fees  of  officers 339 

CHAPTER    VII. 
Marks   and    Brands. 

ARTICLE   III. 

Trade-marks. 

§  3196.     "Trade-marks"   defined 340 

§  3196a.  Registration  of  farm  name 340 

§  3196&.  Trade-mark  on  products 341 

§  3197.     Exclusive  use  of  trade-mark,  how  secured 341 

§  3198.     Record  of  trade-marks 341 

§  3199.      Assignments.      Injunctions 342 

§  3200.     Use  of  by  labor  union 342 

§  3201.     Infringement  of  trade-mark  used  by  trade  union.  .  .  .  342 

CHAPTER  X. 

Hours   of    Labor. 

§  3246.     Twelve  hours  on  street  cars 343 

§  3250.     Hours  of  labor  on  street  cars.     Penalty  for  violation   343 

CHAPTER  XV. 
Licenses. 

ARTICLE   II. 

Classification   and  Taxes. 

§  3378.     Bridge,  ferry,  wharf,  chute,  or  pier  licen.se 344 

8  3379.      Brokers,  trust  companies,  and  others 344 


POLITICAL    CODE.  XXXl 

TITLE    IX. 
Revenue. 

CHAPTER    I. 
Property   Liable  to  Taxation. 

Page. 

§  3607.     Property  subject  to  taxation 345 

§  3608.     Shares  of  stock  in  corporations 346 

§  3609.     Sliares  of  national  banlcs 346 

§3610.      Same    347 

§  3611.      Exemption  of  church  property 347 

CHAPTER    II. 

Definitions. 

§  3617.     Definition  of  tei-ms  and  words 34S 

CHAPTER    III. 

Assessment   of   Property. 

§  3627.      Property,    how    assessed 350 

§3628.     Franchises.      Other  taxable   property 351 

§  3629.     Contents  of  statement  required  by  assessor 353 

§  3630.     Blank  forms  of  statement,  and  affidavit  therefor.  .  .    354 
§  3641.     Property    of    firm    or    corporation    assessed    where 

situated    355 

§  3643.     Ferries  and  toll  bridges,  where  as.sessed 355 

§  3663.     Assessment    of   water    ditches,    toll    roads   and    tele- 
graph  lines 355 

§  3664.     Agent   of  corporation,    statement   by   to   state   board 

of    equalization 356 

§  3665.     Assessment  of  railway  franchises  and  properties.  .  .    357 

§  3666.      Record   of   assessment   of   railways 359 

§  3667.     County  rate  of  taxation  and  notice  to  controller.  .  .  .    360 

§  3668.      Publication  by  controller 361 

§  3669.     Certain  taxes  to  be  paid  state  treasurer 362 

§  3670.      Controller  to  sue  for  delinquent  taxes 364 

§  3671.      Basis  of  taxation  for  counties 365 

CHAPTER    IV. 
Equalization    of    Taxes. 

ARTICLE   II. 

State   Board  of   Equalization. 

§  3692.      Powers  and  duties  of  board 365 


XXXII  CONTENTS. 

PART    IV. 
Of  the  Government  of  Counties,   Cities  and  Towns. 

TITLE    II. 
The  Government   of   Counties. 

CHAPTER    I. 
Counties    as    Bodies    Corporate.                        Page. 
.§  4004.     Restriction  on   loaning  credit 369 

CHAPTER    IV. 

Legislative    Department. 

ARTICLE    IV. 

General  Permanent  Powers. 

S  <(041.      (xeneral   power.s   of  Uie   board 369 

ARTICLE   V. 

Additional    Powers    and    Duties. 

§  404  7.     Franchises  for  construction  of  patlis  and  roads  for 

bicycles  and  other  horseless  vehicles .- .  .  .    372 

CHAPTER  X. 
Salaries   and    Fees   of    Office. 

ARTICLE   LX. 

Fees  of   Officers. 

§4300.      Fees  of  county,    township  and   other  officers 372 

§  4300«.   County   clerk's   fees 372 

CHAPTER   XII. 

IVliscellaneous   Provisions. 

S  4  32.1.      When  majority  of  supervisors  interested  in  applica- 
tion, procedure 374 

TITLE    III. 
The    Government    of    Cities. 

CHAPTER    III. 

Legislative    Powers. 

SItlO.     Common    council    may    grant    authority    to    gas   and 

water  companies 375 

§  4411.      Reservations  by  cities 375 

S  441  2.     ('ontract  for  gas  and  water 376 

S  4  4  13.      Restrictions  and  conditions  to  be  imposed 376 


CODE    OF    CIVIL   PROCEDURE. 


CODE  OF  CIVIL  PROCEDURE. 

PORTIONS  RELATING  TO  PRIVATE  CORPORATIONS- 


Preliminary   Provisions.  Page. 

§  10.     Holidays    377 

§11.     Same    378 

§  17.     Certain  terms  used  in  this  code  defined 378 

PART    I. 
Of  Courts  of  Justice. 

TITLE    I. 
Organization    and    Jurisdiction. 

CHAPTER    VII. 
General    Provisions    Respecting    Courts    of    Justice. 

ARTICLE    III. 

Judicial    Days. 

§  133.     Days  on  which  courts,  etc.,  may  be  held 379 

i  134.      Nonjudicial  days 380 

§  135.      Appointments  on  nonjudicial  days 380 

PART    II. 
Of   Civil    Actions. 

TITLE    II. 
Of   the   Time   of    Commencing    Civil    Actions. 

CHAPTER   III. 

The  Time  of  Commencing  Actions  Otlier  Than  for  the   Recovery 

of    Real    Property. 

§  341.      Within  six  months ; 381 

§  348.     No  limitations  where  money  deposited  in  bank 382 

CHAPTER    IV. 
General   Provisions  as  to   the  Time  of   Commencing   Actions. 

§  359.      This  title  not  applicable  to  actions  against  directors, 

etc.      Limitations   in    such   cases   presci-ibed :1S2 

TITLE    IV. 
Of  the   Place  of  Trial   of  Civil   Actions. 
§  395.      Other    actions    according     to     the     lesidence     of    the 

parties    383 


XXXIV  CONTENTS. 

TITLE   V. 
Of   the    Manner   of   Commencing    Civil    Actions. 

Page. 

§  411.      Summons,  how  served 384 

§  412.  Publication  of  summons,  when  defendant  is  absent 
from  the  state,  concealed,  or  a  foreign  corporation 
having  no  agent,  etc 384 

TITLE   VI. 
Of   the    Pleadings    in    Civil    Actions. 

CHAPTER   IV. 
The  Answer. 
§  437«.   Actions  to  recover  insurance,  what  defendant  claim- 
ing exemption  must  set  up 386 

CHAPTER    VI. 

Verification    of   Pleadings. 

§  446.     Verification  of  pleadings 386 

TITLE    VII. 
Of    the    Provisional    Remedies    in    Civil    Actions. 

CHAPTER   III. 
Injunction. 

§531.     Injunctions  to  suspend  business  of  a  corporation,  liow 

granted    387 

CHAPTER   IV. 
Attachment. 

§  .j41.     Sliares   of    stock    and   debts    due    defendant,    how    at- 

taclied  and  disposed  of -SS 

§  542.     How  real  and  personal  property  shall  be  attached    .  .    3SS 

CHAPTER   V. 
Receivers. 

§  564.     Appointment  of  receiver 3  >') 

§  565.  Appointment  of  receivers  upon  dissolution  of  cor- 
porations      391 

TITLE    IX. 
Of  the    Execution   of  the   Judgment   in    Civil   Actions. 

CHAPTER    I. 
The    Execution. 

§  688.     What  shall  be  liable  to  be  seized   in  execution.     Not 

to  be  affected  till  a  levy  is  made 391 

§  690.     What  exempt  from  execution 392 


CODE    OF    CIVIL    PROCEDURE.  XXXV 

TITLE    X. 
Actions   in   Particular   Cases. 

CHAPTER  V. 
Actions    for    the    Usurpation    of    an    Office    or    Franchise. 

Page. 
803.     Action  may  be  brought  against  party  usurping,  etc., 

any  office  or  franchise 393 

TITLE    XIV. 
Of    Miscellaneous   Provisions. 

CHAPTER   VI. 
Of   Costs. 

1036.  When   plaintiff   is  a   non-resident   or  a   foreign   cor- 

poration, defendant  may  require  security  for  costs  394 

1037.  If  such  security  is  not  given,  tlie  action  mey  be  dis- 

missed        395 

CHAPTER    VII. 
General   Provisions. 

1056.  Corporations  may  become  sureties  on  undertalcings 

and  bonds 395 

1057.  Undertal<ings  or  bonds,  requisites  of 396 


PART    III. 
Of   Special    Proceedings   of   a    Civil    Nature. 

TITLE   VI. 
Of  the   Voluntary    Dissolution   of   Corporations. 

§  1227.      How    dissolved 39S 

§  1228.     Application,  what  to  contain 398 

§  1229.     Application,   how  signed  and  verified 399 

§  1230.     Piling  application  and  publication  of  notice 399 

§  1231.     Objections  may  be  filed 399 

§  1232.     Hearing  of  application 399 

§  1233.     Judgment  roll  and  appeals 399 

§  1234.     Application  by  savings  and  loan  society 400 

TITLE    IX. 
Of  Change  of  Names. 

§  1275.      Jurisdiction     401 

§  1276.     Application  for  change  of  name,  how  made 401 

§  1277.     Order  to  show  cause;  publication;  proof  of  publica- 
tion      402 

§1278.     Hearing  of  application  and  remonstrance;  corpora- 
tions ;  change  of  name 402 

§  1279.     County  clerk  to  file  copy   of  decree  with   secretary 

of  state 403 


iXXVI  CONTENTS. 

TITLE    XI. 
Of   Proceedings   in    Probate   Courts. 

CHAPTER   III. 
Of    Executors   and    Administrators,    Etc. 

ARTICLE    I.                                         Page. 
Letters    Testamentary    and    of    Administration,    Etc. 
134  8.      Corporations  as  executors 403 


PENAL  CODE. 

PORTIONS  RELATING  TO  PRIVATE  CORPORATIONS. 


Preliminary    Provisions.  Page. 

§       7.     Certain  terms  defined  in  the  senses  in  wliich  tliey  are 

used  in  this  code 405 

PART   I. 
Of    Crimes   and    Punishments. 

TITLE  VII. 
Of    Crimes    Against    Public    Justice. 

CHAPTER    VII. 
Other    Offenses    Against    Public    Justice. 

§  178.     Offlcer.s  of  coiporations  not  to  employ  Cliinese.     [Re- 
pealed]         408 

§179.     Corporations  not  to  employ  Chine.se.      [Repealed]...    408 

TITLE    IX. 

Of   Crimes  Against   the    Person   and   Against    Public    Decency 

and   Good    Morals. 

CHAPTER    II. 

Abandonment    and    Neglect    of    Children. 

§  273e.   Minors  not  to  deliver  messages,  etc.,  to  certain  places  408 

S  273/".    Sending  children  to   immoral   places 409 

CHAPTER    VII 
Of  Crimes  Against  Religion  and   Conscience,   and  Other  Offenses 

Against  Good   iviorals. 
S  310.      .Advertisements,  etc.,  on  {lag  piohiljited.     IV-nalty.     lOx- 

ceptions   409 


PENAL    CODE.  XXXVII 

CHAPTER  XI. 

Pawnbrokers.  Page. 

§  3.39.     Failing  to  keep  a  register 410 

§  343.     Refusing  to  allow  an  officer  with   search-warrant  to 

Inspect    register   of   pledged   articles 411 

CHAPTER    XII. 
Other    Injuries  to   Persons. 
§  349a.  Frauds  in  stamping  and  labeling  produce  and  manu- 
factured goods 411 

§  350.     Counterfeiting  trade-marks 412 

§351.      Selling  goods  which  bear  counterfeit  trade-marks...  412 

§  352.     Definition  of  "counterfeited  trade-marks,"  etc 413 

§  353.     "Trade-mark"   defined 413 

§  354.     Refilling  casks,  etc.,  bearing  trade-mark 413 

§  3541/^. Selling  or  refilling  casks,  etc.,  bearing  trade-mark.  .  .  414 

§  354%. Destroying  or  defacing  trade-marks 414 

§  365.     Innkeepers  and  carriers  refusing  to  receive  guests.  .  .  414 

TITLE    X. 
Of   Crimes   Against   the   Public    Health    and   Safety. 

§  369a.   Street  cars  to  have  proper  brakes  and  fenders 415 

§  369 &.  Confining  cattle,    sheep,   or  swine   in   cars  for  longer 

than  certain  time 416 

§  375a.  Record  of  sale  of  explosives 416 

§  383a.   Sale  of  process  or  renovated  butter 417 

§  386.     Maintaining  bridge  or  ferry  without  authority 417 

§  387.     Violating  condition  of  undertaking  to  keep  ferry 418 

§  388.      Riding  or  driving  faster  than  a  walk  on  toll  bridges.  418 

§  389.      Cro-ssing  toll  bridges,  etc.,  without  paying  toll 418 

§  402c.  Unsafe  scaffolding,  ladders,   etc 418 

TITLE    XI. 
Of  Crimes  Against  the  Public  Peace. 

S  421.      National  Guard,  discrimination  against  members  of.  .    419 

TITLE    XII. 
Of  Crimes  Against  the   Revenue  and   Property  of  This  State. 
S  131.      Refusing  to  give  names  of  pei'Sdus  employed,  etc,   to 

la,\  oi'  license  collector 119 

S  IMTi.      Oarr.ving  on  lousiness  without  licen.se 120 

S  i:i9.      Effecting  insurance  on  account  of  foreign   companies 

tliat  have  not  complied  with  the  laws  of  this  state.    4  20 

TITLE    XIII. 
Of   Crimes  Against   Property. 

CHAPTER   I. 
Embezzlement. 

§  504.      When  officer,  etc.,  guilty  of  embezzlement 420 

S  505.      Carrier,  when  guilty  of  embezzlement 421 

§  506.     When  trustee,  banker,  etc.,  guilty  of  embezzlement.  .    421 


XXXVni  CONTENTS. 

CHAPTER  VII. 

Extortion.  Page. 

§525.     Officers  of  railroad  company  making  overcharges...    421 

CHAPTER  XI. 
Fraudulent    Destruction    of    Property    Insured. 

§  548.     Burning  or  destroying  property  in.sured 422 

§  549.     Presenting  false  proofs  upon  policy  of  insurance.  .  .  .    422 

CHAPTER    XIII. 

Fraudulent    Insolvencies    by    Corporations    and    Other    Frauds    in 

Their    Management. 

§  557.     Frauds  in  subscriptions  for  stock  of  corporations.  .  .  .    423 

§  558.     Frauds  in  organization  or  increasing  capital 423 

§  559.     Unauthorized  use  of  names  in  prospectus 424 

§  560.     Misconduct  of  directors  of  stock  corporations 424 

§  561.     Officer  of  savings  bank  overdrawing  account 425 

§  562.     Receiving  deposits  in  insolvent  banks 425 

§  563.     Frauds  in  keeping  accounts  in  books  of  corporations.    425 

§  564.     Officer  of  corporation  publishing  false  reports 426 

§  565.     Officer  must  permit  inspection  of  books 426 

§  566.     Contracting  debt  of  railway 426 

§  567.     Same \    427 

§  568.     Director  presumed  to  know  condition  of  corporation.    427 
§  569.     Director    present    at     meeting,     when     presumed     to 

assent 427 

§  570.     Director  when  absent,  when  presumed  to  assent 427 

§  571.     Foreign,  doing  business  in  this  .state 428 

§  572.      Director    defined 428 

TITLE    XV. 
Miscellaneous  Crimes. 

CHAPTER    I. 
Violation  of  the  Laws  for  the  Preservation  of  Fish  and  Game. 

S  627o.   Unlawful  carrying  of  deer  and  other  game 42S 

§  6276.   Limit  as  to  shipment  of  certain  game 429 

§  629.      Screen  over  canal,  ditch,  mill  race,  etc 429 

§  631o.   Penalty  for  violation 430 

S  637.     FLshways.     Fish  commissioners  to  examine  dams.  .  .  .  430 

S  637d.   Transportation  of  non-game  birds 431 

§  637e.  Certificates  giving  right  to  take  birds 431 

CHAPTER    II. 

Of    Other   and    Miscellaneous    Offenses. 

§  648.     Issuing  or  circulating  paper  money 432 

Tl  1  LE    XVI. 
General    Provisions. 
§  654a.   False  representation  as  to  quality  or  merits  of  goods 

sold  or  advertised ;  penalty 432 

§  679.     Coercion   or   compulsion    of  persons   seeking  employ- 
ment      433 


PENAL    CODE.  XXXIX 

PART    II. 
Of  Criminal   Procedure. 

TITLE    X. 
Miscellaneous    Proceedings. 

CHAPTER   IX. 
Proceedings    Against    Corporations.  Page. 

1390.  Summons  upon  information  against  corporations. ..  .  433 

1391.  Form  of  summons 434 

1392.  When  and  how  sei'ved 434 

1393.  Examination  of  the  charge 434 

1394.  Certificate  of  magistrate  and  return  of  depositions.  .  434 

1395.  Grand  jury  to  investigate  wlien  .sufflcient  cause 434 

1396.  Appearance  and  plea 435 

1397.  Fine  on  conviction,  how  collected 435 

TITLE    XI. 

Of   Proceedings   in   Justices'   and   Police   Courts,   and   Appeals 

to   Superior    Courts. 

CHAPTER    I. 
Proceedings    in    Justices'    and    Police    Courts. 

I  1427.     When  warrant  of  arrest  must  issue.     Form  of  war- 
rant.    Summons  to  issue  in  case  of  corporation.  .  .    4  35 


APPENDIX. 


STATUTES  AT  LARGE  RELATING  TO  CORPORATIONS. 

Advertisements    439 

Agricultural   Associations 439 

Animals ■♦54 

Anti-trust 455 

Banks  and  Banking 455 

Bath   Houses 514 

Boards  of  Trade 515 

Beneficial  and  Reli<f  AssociLitions 515 

Bonds 515 

Bridges    518 

Brokers 523 

Building  and  Loan  Commissioners 526 

Cemeteries    536 

Certificates 544 

Chambers  of  Commerce 545 

Children 545 

Combinations 545 

Conspiracy    554 

Co-operative  Associations 554 

Crematories    555 

Day  of  Rest 556 

Demurrage   556 

Employment  and  Employment  Agents 556 


xl  contents. 

Page. 

Emigration 563 

Executors   564 

Factories  and  Workshops 572 

Foreign  Corporations 572 

Franchises 572 

Fraudulent  Reports 578 

Game   Preserves 579 

Gas  Companies 581 

Health  and  Sanitation 582 

Holidays   591 

Hospitals   591 

Hours  of  Labor 594 

Insurance    598 

Interest 624 

License   Tax 624 

Limitation  of  Actions 631 

Loans  on  Personal  Property 631 

Mechanic  Institutes 631 

Mines  and  Mining 632 

Municipal    Corporations 638 

Personal  Property  Brokers 644 

Public  Welfare 644 

Railroads 645 

Rules  of  the  Railroad  Commission 674 

Street  Railroads 670 

Trade-Marks 683 

Trust  Companies 686 

United  States 687 

Wages   687 

Warehousemen 688 

Water   Companies 707 

CORPORATION    LEGISLATION    PRIOR   TO   THE    CODES. 

History  of  statutes  and  provisions  for  repeal 715 

CORPORATION  FORMS  AND  PRECEDENTS. 

Continuance  of  existence  under  §  287  of  the  Civil  Code 724 

Extension  of  existence  under  §4  01  of  the  Civil  Code 726 

Extension  of  existence  under  §  7,  Art.  XII,  of  the  Constitution  728 

Articles  of  incorporation  with  capital  stock 731 

Articles  of  incorporation  without  capital  stock 734 

Articles  of  incorporation  of  Co-operative  Associations 737 

Creation  of  Bonded   Indebtedness 739 

Increase  of  Capital  Stock 750 

Increase  or  Decrease  of  Directors 757 

Removal  of  Principal  Place  of  Business 759 

Order  for  Change  of  Name 763 

Order    for    Voluntary    Dissolution 764 

FEDERAL    CORPORATION    TAX    LAW. 

Act  of  Congress  of  August  5,   1909 767 

INDEX. 

Appendix  Index 777 

General  Index  789 


CONSTITUTION  Of  THE  STATE  OF 
CALlfORNIA— 1879. 


PORTIONS  RELATING  TO  PRIVATE  CORPORATIONS. 


ABBREVIATIONS. 

Cal. :  California  Reports. 

Cal.  App. :   California  Appellate  Reports. 

Cal.  Dec. :   California  Decisions. 

Cal.  App.  Dec.  :   California  Appellate  Decisions. 


Article  I. 

DECLARATION   OF    RIGHTS. 

Sec.  11.     Laws  to  be  uniform. 

14.     Rights  of  private  property. 

21.      Special  privileges,  limitations  on. 

Laws  to  be  uniform. 

Sec.  11.     All  laws  of  a  general  nature  shall  have  a  uniform 
operatiou. 

56  Cal.  638 ;  58  Cal.  01 ;  59  Cal.  12 :  GO  Cal.  189 ;  65  Cal. 

35 ;  68  Cal.  145 ;  69  Cal.  151 ;  71  Cal.  630,  631  ;  73  Cal. 

582 ;  76  Cal.  442  ;  84  Cal.  76 ;  89  Cal.  472,  523 ;  90  Cal. 

558;  91  Cal.  249;  94  Cal.  603,  620,  624.  632;   104  Cal. 

351;  105  Cal.  616;  109  Cal.  334,  497;  110  Cal.  652;  111 

Cal.  371,  372,  569;  113  Cal.  646;  114  Cal.  146,  3.34;  115 

Cal.  550;  118  Cal.  305,  408;  119  Cal.  241;  120  Cal.  6.50; 

122  Cal.   147;   124  Cal.  347;   120  Cal.  37;   127  Cal.  7; 

129  Cal.  343;   134  Cal.  .53,  55;  136  Cal.  528;   137  CaJ. 

481 ;  138  Cal.  381 ;  140  Cal.  487 ;  143  Cal.  414 ;  144  Cal. 

269 ;  147  Cal.  334  ;  148  Cal.  265,  748 ;  149  Cal.  400 ;  151 

Cal.  334;  1.53  Cal.  61,  62;  1  Cal.  App.  199;  6  Gil.  App. 

240,  241. 


2  STATE   CONSTITUTION.  ArT.  I,  §  14 

Rights  of  private  property. 

Sec.  14.  Private  property  shall  uot  be  taken  or  damaged  for 
public  use  without  just  compensation  having  been  first  made  to, 
or  paid  into  court  for,  the  owner,  and  no  right  of  way  shall  be 
appropriated  to  the  use  of  any  corporation  other  than  municipal 
until  full  compensation  therefor  be  first  made  in  money  or  ascer- 
tained and  paid  into  court  for  the  owner,  irrespective  of  any 
benefit  from  any  improvement  proposed  by  such  corporation, 
which  compensation  shall  be  ascertained  by  a  jury,  unless  a  jury 
be  waived,  as  in  other  civil  cases  in  a  court  of  record,  as  shall  be 
prescribed  by  law. 

.50  Cal.  285,  411 ;  .54  Cal.  324 ;  59  Cal.  265,  267 ;  60  Cal. 

210 ;  61  Cal.  91 ;  64  Cal.  178 ;  65  Cal.  294 ;  66  Cal.  501 ; 

67  Cal.  49,  62,  64,  545  ;  68  Cal.  62,  65 ;  69  Cal.  206,  265, 

301;  73  Cal.  40;  74  Cal.  262;  77  Cal.  29;  78  Cal.  72; 

79  Cal.  162,  551 ;  83  Cal.  569  ;  86  Cal.  48 ;  91  Cal.  4.56 ; 

94  Cal.  492.  608  ;  95  Cal.  223 ;  98  Cal.  262,  617,  618 ;  103 

Cal.  470,  616;  106  Cal.  284;  109  Cal.  622;  111  Cal.  563; 

112  Cal.  309  ;  118  Cal.  281,  287,  572,  584 ;  124  Cal.  643 ; 

125  Cal.  106  ;  126  Cal.  22,  153 ;  130  Cal.  495,  634,  6.36, 

637 ;  133  Cal.  105  ;  137  Cal.  579,  621,  629 ;  141  Cal.  49 ; 

142  Cal.  650 ;  144  Cal.  212 ;  150  Cal.  175 ;  151  Cal.  273, 

275,  279 ;  1  Cal.  App.  444  ;  2  Cal.  App.  560 ;  5  Cal.  App. 

730 ;  XXXVI  Cal.  Dec.  258. 

Special    privileges,   limitations  on. 

Sec.  21.  No  special  privileges  or  immunities  shall  ever  be 
granted  which  may  not  be  altered,  revoked,  or  repealed  by  the 
legislature,  nor  shall  any  citizen,  or  class  of  citizens,  be  granted 
privileges  or  immunities  which,  upon  the  same  terms  shall  not 
be  granted  to  all  citizens. 

60  Cal.  189 ;  62  Cal.  539  ;  65  Cal.  35 ;  69  Cal.  151 ;  72  Cal. 

389 ;  73  Cal.  371,  375 ;  83  Cal.  396,  412 ;  110  Cal.  652 ; 

112  Cal.  471 ;  114  Cal.  496 ;  118  Cal.  5 ;  127  Cal.  7 ;  129 

Cal.  343;  134  Cal.  55,  59;  1.37  Cal.  481;  143  Cal.  414, 

573 ;  144  Cal.  173 ;  148  Cal.  265 ;  149  Cal.  400 ;  151  Cal. 

334  ;  1.52  Cal.  233 ;  6  Cal.  App.  2.37,  240,  241 ;  XXXVI 

Cal.  Dec.  264  ;  VII  Cal.  App.  Dec.  112. 


Art.  IV,  §  22  state  constitution.  3 

Article  IV. 

LEGISLATIVE    DEPARTMENT. 

Sec.  22.     Money,  how  appropriated;  how  drawn. 

25.  Local  and  special  legislation  forbidden. 

26.  Lotteries  prohibited. 

.31.     Public  credit  to  corporations  prohibited. 

.33.     Cliarges  by  certain  corporations,   regulation  of 

Money,  how  appropriated;  how  drawn. 

Sec.  22.  No  monoy  shall  be  drawn  from  the  treasury  but  iu 
consequence  of  appropriations  made  by  hiw,  and  upon  warrants 
duly  drawn  thereon  by  the  controller  ;  and  no  money  shall  ever 
be  appropriated  or  drawn  from  the  state  treasury  for  the  use  or 
benefit  of  any  corporation,  association,  asylum,  hospital,  or  any 
other  institution  not  under  the  exclusive  mauasement  and  control 
of  the  state  as  a  state  institution,  nor  shall  any  grant  or  dona- 
tion of  property  ever  be  made  thereto  by  the  state ;  provided, 
that  notwithstanding  anj'thing  contained  in  this  or  any  other  sec- 
tion of  this  constitution,  the  legislature  shall  have  the  power  to 
grant  aid  to  institutions  conducted  for  the  support  and  main- 
tenance of  minor  orphans,  or  half-orphans,  or  abandoned  children, 
or  aged  persons  in  indigent  circumstances — such  aid  to  be  granted 
by  a  uniform  rule,  and  proportioned  to  the  number  of  inmates  of 
such  respective  institutions :  prcvided  further,  that  the  state 
shall  have  at  any  time  the  right  to  inquire  into  the  management 
of  such  institution ;  provided  further,  that  whenever  any  county, 
or  city  and  county,  or  city,  or  town,  shall  provide  for  the  support 
of  minor  orphans,  or  half-orphans,  or  abandoned  children,  or  aged 
persons  in  indigent  circumstances,  such  county,  city  and  county, 
city,  or  town  shall  be  entitled  to  receive  the  same  pro  rata  appro- 
priations as  may  be  granted  to  such  institutions  under  church  or 
other  control.  An  accurate  statement  of  the  receipts  and  expend- 
itures of  public  moneys  shall  be  attached  to  and  published  with 
the  laws  at  every  regular  session  of  the  legislature. 

61  Cal.  267 ;  69  Cal.  74,  77 ;  71  Cal.  630,  631  ;  77  Cal.  183, 
134 ;  SO  Cal.  221 ;  84  Cal.  58  ;  92  Cal.  55  ;  106  Cal.  116, 
119;  114  Cal.  395;  120  Cal.  386;  121  Cal.  19;  123  Cal. 
151;  120  Cal.  118;  139  Cal.  400;  144  Cal.  684;  151  Cal. 
800;  VII  Cal.  App.  Dec.  109. 


4  STATE  CONSTITUTION.  ART.  IV,  §  25 

Local  and  special  legislation  forbidden. 

Sec.  2.").     The  legislature  shall  not  pass  local  or  special  laws 
in  any  of  the  following  enumerated  cases,  that  is  to  say  : 
tSixth — Changing  the  names  of  persons  or  places. 

Subdivision  6—123  Cal.  527. 
Sixteenth — Releasing  or  extinguishing,  in  whole  or  in  part,  the 
indebtedness,  liability,  or  obligation  of  any  corporation  or  person 
to  this  state,  or  to  any  municipal  corporation  therein. 
Subdivision  iC— 126  Cal.  117. 
'Nineteenth — Granting  to  any  corporation,  association,  or  indi- 
vidual any  special  or  exclusive  right,  privilege,  or  immunity. 

Subdivision  19—100  Cal.  120 ;  114  Cal.  49G ;  118  Cal. 
306 ;  124  Cal.  69S ;  143  Cal.  414. 
Twenty-third — Regulating  the  rate  of  interest  on  money. 

Subdivision  23—07  Cal.  360. 
Ticenty-fifth — Chartering    or    licensing    ferries,    bridges,    or 
roads. 

Subdivision  25—114  Cal.  496. 
Twenty-sixth — Remitting  fines,  penalties,  or  forfeitures. 
Thirty-third — In  all  other  cases  where  a  general  law  can  be 
made  applicable. 

Subdivision  33—55  Cal.  490,  491,  495;  81  Cal.  498; 
84  Cal.  76 ;  91  Cal.  249 ;  94  Cal.  620 ;  100  Cal.  120 ;  109 
Cal.  497 ;  111  Cal.  371,  372,  569 ;  112  Cal.  471 ;  114  Cal. 
410;  117  Cal.  363;  118  Cal.  306,  404;  119  Cal.  523;  124 
Cal.  698;  326  Cal.  230;  127  Cal.  7,  684;  130  Cal.  134; 
132  Cal.  22]  ;  140  Cal.  487 ;  144  Cal.  269 ;  148  Cal.  148 ; 
149  Cal.  399;  350  Cal.  322:  152  Cal.  231;  1  Cal.  App. 
573;  6  Cal.  App.  240;  VII  Cal.  App.  Dec.  111. 
Citations  to  section  25 — General: 

55  Cal.  490,  493 ;  552,  618 ;  57  Cal.  613 ;  58  Cal.  576 ;  59 
Cal.  8 ;  60  Cal.  32,  189,  191 ;  61  Cal.  38,  267 ;  63  Cal. 
382;  65  Cal.  123,  290;  67  Cal.  211,  360.  595;  72  Cal. 
466;  73  Cal.  77;  81  Cal.  499;  83  Cal.  402,  405.  414; 
84  Cal.  229;  85  Cal.  413;  87  Cal.  79;  91  Cal.  249;  93 
Cal.  396,  400;  94  Cal.  620,  624;  98  Cal.  224;  103  Cal. 
395;  104  Cal.  351,  644;  105  Cal.  616;  109  Cal.  335;  110 
Cal.  31;  111  Cal.  102,  105,  569;  112  Cal.  471  ;  113  Cal. 
514,  645 ;  114  Cal.  334,  410 ;  120  Cal.  401 ;  121  Cal.  262, 


AKT.  IV,  §  25  STATE  CONSTITUTION.  5 

267 ;  122  Cal.  148,  556 ;  123  Cal.  25.  527,  528  ;  124  Cal. 
696.  698  ;  126  Cal.  117,  122.  123,  230 :  127  Cal.  7 ;  132 
Cal.  221 :  135  Cal.  471,  518 ;  137  Cal.  518,  520 ;  138  Cal. 
381 ;  139  Cal.  541 ;  140  Cal.  480 ;  142  Cal.  195 :  143  Cal. 
414 ;  144  Cal.  269  ;  1  Cal.  App.  573 ;  XXXVI  Cal.  Dec. 
204,  312. 

l-Otteries  prohibited. 

Sec.  26.  The  legislature  shall  have  uo  power  to  authorize 
lotteries  or  gift  enterprises  for  any  purpose  and  shall  pass  laws 
to  prohibit  the  sale  in  this  state  of  lottery  or  gift  enterprise 
tickets  or  tickets  in  any  scheme  in  the  nature  of  a  lottery.  The 
legislature  shall  pass  laws  to  prohibit  the  fictitious  buying  and 
selling  of  the  shares  of  the  capital  stock  of  corporations  in  any 
stock  board,  stock  exchange  or  stock  market  under  the  control  of 
any  corporation  or  association.  All  contracts  for  the  purchase 
or  sale  of  shares  of  the  capital  stock  of  any  corporation  or  asso- 
ciation without  any  intention  on  the  part  of  one  party  to  deliver 
and  of  the  other  party  to  receive  the  shares,  and  contemplating 
merely  the  payment  of  differences  between  the  contract  and  mar- 
ket prices  on  divers  days,  shall  be  void,  and  neither  party  to  any 
such  contract  shall  be  entitled  to  recover  any  damages  for  failure 
to  perform  the  same,  or  any  money  paid  thereon,  in  any  court  of 
this  state.      [Amendment  adopted  November  8,  190S.] 

{Original  section.]  Sec.  26.  The  legislature  shall  have  no 
power  to  authorize  lotteries  or  gift  enterprises  for  any  purpose, 
and  shall  pass  laws  to  prohibit  the  sale  in  this  state'of  lottery 
or  gift  enterprise  tickets,  or  tickets  in  any  scheme  in  the  nature 
of  a  lottery.  The  legislature  shall  pass  laws  to  regulate  or  pro- 
hibit the  buying  and  selling  of  the  shares  of  the  capital  stock  of 
corporations  in  any  .'^tock  board,  stock  exchange,  or  stock  market 
under  the  control  of  any  association.  All  contracts  for  the  sale 
of  shares  of  the  capital  stock  of  any  corporation  or  association, 
on  margin,  or  to  be  delivered  at  a  future  day,  shall  be  void,  and 
any  money  paid  on  such  contracts  may  be  recovered  by  the  party 
paying  it  by  suit  in  any  court  of  competent  jurisdiction. 

67  Cal.  93  ;  68  Cal.  289  ;  87  Cal.  607 ;  89  Cal.  378  ;  103 

Cal.  247,  328 ;  104  Cal.  599  ;  109  Cal.  692 ;  111  Cal.  372  ; 

119  Cal.  405;  127  Cal.  118;  130  Cal.  326.  331;  140  Cal. 

658  ;  150  Cal.  241. 


6  STATE  CONSTITUTION.  ArT.  IV,  §  31 

Public  credit  to  corporations   prohibited. 

►Sec.  31.  The  legislature  shall  have  no  power  to  give  or  to 
lend,  or  to  authorize  the  giving  or  lending,  of  the  credit  of  the 
state,  or  of  any  county,  city  and  county,  city,  township,  or  other 
political  corporation  or  subdivision  of  the  state  now  existing,  or 
that  may  be  hereafter  established,  in  aid  of  or  to  any  person, 
association,  or  corporation,  whether  municipal  or  otherwise,  or  to 
pledge  the  credit  thereof  in  any  manner  whatever,  for  the  pay- 
ment of  the  liabilities  of  any  individual,  association,  municipal  or 
other  corporation  whatever ;  nor  shall  it  have  power  to  make  any 
gift,  or  authorize  the  making  of  any  gift,  of  any  public  money 
or  thing  of  value,  to  any  individual,  municipal  or  other  corpora- 
tion whatever;  provided,  that  nothing  in  this  section  shall  pre- 
vent the  legislature  granting  aid  pursuant  to  section  twenty-two 
of  this  article ;  and  it  shall  not  have  power  to  authorize  the 
state,  or  any  political  subdivision  thereof,  to  subscribe  for  stock, 
or  to  become  a  stockholder  in  any  corporation  whatever. 

57  Cal.  170,  171,  176 ;  61  Cal.  43 :  72  Cal.  473.  474,  475  ; 

73  Cal.  39 ;  74  Cal.  125 ;  77  Cal.  371.  475 ;  80  Cal.  270 ; 

S3  Cal.  265 ;  91  Cal.  651 ;  92  Cal.  606  ;  93  Cal.  326,  329  ; 

95  Cal.  150 ;  97  Cal.  252 ;  98  Cal.  53 :  99  Cal.  21 ;  104 

Cal.  690,  693;  106  Cal.  124;  109  Cal.  380,  580;  112  Cal. 

315;  llSCal.  532,  533;  117  Cal.  176;  118  Cal.  546;  123 

Cal.  498 ;  126  Cal.  118 ;  138  Cal.  273 ;  143  Cal.  331 ;  144 

Cal.  692,  694;  149  Cal.  528:  151  Cal.  800;  152  Cal.  735; 

153  Cal.  2^5,  228:  XXXVI  Cal.  Dec.  114;  6  Cal.  App. 

747 ;  VI  Cal.  App.  Dec.  545 ;  VII  Cal.  App.  Dec.  112. 

Cliarges  by  certain  corporations,   regulation  of. 

Sec.  33.  The  legislature  shall  pass  laws  for  the  regulation 
and  limitation  of  the  charges  for  services  performed  and  com- 
modities furnished  by  telegraph  and  gas  corporations,  and  the 
charges  by  corporations  or  individuals  for  storage  and  wharfage, 
in  which  there  is  a  public  use :  and  where  laws  shall  provide  for 
the  selection  of  any  person  or  officer  to  regulate  and  limit  such 
rates,  no  such  person  or  officer  shall  be  selected  by  any  corpora- 
tion or  individual  interested  in  the  business  to  be  regulated,  and 
no  person  shall  be  selected  who  is  an  officer  or  stockholder  in  any 
such  corporation. 

145  Cal.  633,  634,  635,  («6. 


Art.  X,  §  G  state  co>fSTiTUTioN.  7 

Article  X. 

STATE    INSTITUTIONS  AND   PUBLIC    BUILDINGS. 
Sec.  6.      Convict  labor. 

Convict  labor. 

Sec.  6.  After  the  first  day  of  January,  eighteen  hundred  and 
eighty-two.  the  labor  of  convicts  shall  not  be  let  out  by  contract 
to  any  person,  co-partnership,  company,  or  corporation,  and  the 
legislature  shall,  by  law,  provide  for  the  working  of  convicts  for 
the  benefit  of  the  state. 

Article  XI. 

COUNTIES,   CITIES,  AND  TOWNS. 

Sec.  13.     Municipal  power  not  granted  by  legislature. 

16i/2-I5eposit  of  moneys  belonging  to  state,  county,  or  munici- 
pality. 
19.     Use  of  streets  for  gas  and  water  pipes. 

Municipal  power  not  granted  by  legislature. 

Sec.  13.  The  legislature  shall  not  delegate  to  any  special 
commission,  private  corporation,  company,  association,  or  indi- 
vidual, any  power  to  make,  control,  appropriate,  supervise,  or 
in  any  way  interfere  with  any  county,  city,  town,  or  municipal 
improvement,  money,  property,  or  effects,  whether  held  in  trust 
or  otherwise,  or  to  levy  taxes  or  assessments,  or  perform  any 
municipal  functions  whatever. 

55  Cal.  618 ;  59  Cal.  96 ;  60  Cal.  32 ;  61  Cal.  277 ;  64  Cal. 

507;  71  Cal.  311,  312,  313,  314,  630,  631;  80  Cal.  270; 

86  Cal.  48 ;  87  Cal.  607  :  88  Cal.  359.  412 ;  97  Cal.  219 ; 

99  Cal.  560 ;  112  Cal.  329,  564  ;  113  Cal.  399 ;  118  Cal. 

308 ;  121  Cal.  552 ;  125  Cal.  193,  194 ;  126  Cal.  134  ;  133 

Cal.  103 ;  144  Cal.  333 ;  148  Cal.  631 ;  150  Cal.  82,  86 ; 

152  Cal.  234. 

Deposit  of  moneys  belonging  to  state,  county  or  municipality. 

Sec.  16^2-  A!)  moneys  belonging  to  the  state,  or  to  any 
county  or  municipality  within  this  state,  may  be  deposited  in 
any  national  bank  or  banks  within  this  state,  or  in  any  bank 
or  banks  organized  under  the  laws  of  thi.s  state,  in  such  manner 


8  STATE    CONSTITUTION.  ArT.  X,  §  16% 

and  under  such  conditions  as  may  be  provided  by  law  ;  provided, 
that  such  bank  or  banks  in  which  such  moneys  are  deposited 
shall  furnish  as  security  for  such  deposits,  bonds  of  the  United 
States,  or  of  this  state  or  of  any  county,  municipality  or  school 
district  within  this  state,  to  be  approved  by  the  officer  or  officers 
designated  by  law,  to  an  amount  in  value  of  at  least  ten  per  cent 
in  excess  of  the  amount  of  such  deposit ;  and  provided,  that  such 
bank  or  banks  shall  pay  a  reasonable  rate  of  interest,  not  less 
than  two  per  cent  per  annum  on  the  daily  balances  therein 
deposited  ;  and  provided,  that  no  deposit  shall  at  any  one  time 
exceed  fifty  per  cent  of  the  paid-up  capital  stock  of  such  deposi- 
tory bank  or  banks;  and  provided  further,  that  no  officer  shall 
deposit  at  one  time  more  than  twenty  per  cent  of  such  public 
moneys  available  for  deposit  in  any  bank  while  there  are  other 
qualified  banks  requesting  such  deposits.  [IVew;  section;  adopted 
November  6,  1906. 
152  Cal.  8,  9. 

Use  of  streets  for  gas  and  water  pipes. 

Sec.  10.  In  any  city  where  there  are  no  public  works  owned 
and  controlled  by  the  municipality  for  supplying  the  same  with 
water  or  artificial  light,  any  individual,  or  any  company  duly 
incorporated  for  such  purpose  under  and  by  authority  of  the  laws 
of  this  state,  shall,  under  the  direction  of  the  superintendent  of 
streets,  or  other  officer  in  control  thereof,  and  under  such  gen- 
eral regulations  as  the  municipality  may  pi'escribe  for  damages 
and  indemnity  for  damaces.  have  the  privilege  of  using  the  pub- 
lic streets  and  thoroughfares  thereof,  and  of  laying  down  pipes 
and  conduits  therein,  and  connections  therewith,  so  far  as  may 
be  necessary  for  introducing  into  and  supplying  such  city  and  its 
inhabitants  cither  with  gaslight  or  other  illuminating  light,  or 
with  fresh  water  for  domestic  and  all  other  purposes,  upon  the 
condition  that  the  municipal  government  shall  have  the  right  to 
regulate  the  charges  thereof.  [Amendment  adopted  November  J/, 
1881] 

[Original  section.]  Sec.  19.  No  public  work  or  improve- 
ment of  any  description  whatsoever  shall  he  done  or  made,  in  any 
city,  in,  upon  or  al.out  the  streets  thereof,  or  otherwise,  the  cost 
and  expense  of  which  is  made  chargeable  or  may  be  assessed 
upon  private  property  by  special  assessment,  unless  an  estimate 
of  such  cost  and  expense  shall  be  made,  and  an  assessment,  in 


Art.  X,  §  19  state  constitution.  9 

proportion  to  benefits,  on  the  property  to  be  affected  or  benefited, 
shall  be  levied,  collected,  and  paid  into  the  city  treasury  before 
such  work  or  improvement  shall  be  commenced,  or  any  contract 
for  letting  or  doing  the  same  authorized  or  performed.  In  any 
city  where  there  are  no  public  works  owned  and  controlled  by  the 
municipality,  for  supplying  the  same  with  water  or  artificial 
light,  any  individual,  or  any  company  duly  incorporated  for  such 
purpose  under  and  by  authority  of  the  laws  of  this  state,  shall, 
under  the  direction  of  the  superintendent  of  streets,  or  other 
officer  in  control  thereof,  and  under  such  general  regulations  as 
the  municipality  may  prescribe  for  damages  and  indemnity  for 
damages,  have  the  privilege  of  using  the  public  streets_  and  thor- 
oughfares thereof,  and  of  laying  down  pipes  and  conduits  therein, 
and  connections  therewith,  so  far  as  may  be  necessary  for  intro- 
ducing into  and  supplying  such  city  and  its  inhabitants  either 
with  gaslight  or  other  illuminating  light,  or  with  fresh  water  for 
domestic  and  all  other  purposes,  upon  the  condition  that  the 
municipal  government  shall  have  the  right  to  regulate  the  charges 
thereof. 

54  Cal.  246 ;  5G  Cal.  054 ;  57  Cal.  G16  ;  61  Cal.  24,  277 ; 

62  Cal.  108,  209,  232 ;  69  Cal.  466,  481,  482,  515 ;  72  Cal. 

5,  6 ;  73  Cal.  75 ;  79  Cal.  281 ;  81  Cal.  497 ;  82  Cal.  307 ; 

92  Cal.  342  ;  93  Cal.  161 ;  98  Cal.  618 ;  118  Cal.  5.  483, 

584,  586 ;  129  Cal.  402,  403 ;  137  Cal.  118,  119 ;  142  Cal. 

287 ;  143  Cal.  371 ;  145'  Cal.  032,  633,  634,  635,  639,  640 ; 

148  Cal.  315,  327,  333.  370 ;  150  Cal.  558,  559 ;  151  Cal. 

428;  152  Cal.  586,  594;  153  Cal.  27;  1  Cal.  App.  673, 

677,  678  ;  2  Cal.  App.  560,  722. 


10  STATE  CONSTITUTION.  AeT.  XII,  §  1 


Article  XII. 

CORPORATIONS. 

Sec.    1.  Corporations,  how  formed. 

2.  Corporations,  dues  from. 

3.  Corporation  stockholders  and  directors,  liability  of. 

4.  Corporations,  what  they  include. 

5.  Banking  corporations. 

6.  Existing  charters,  invalid  in  certain  cases. 

7.  Franchises  or  charters  not  to  be  extended  by  legislature. 

Extension  of  corporate  existence. 

8.  Corporate  property  subject  to  eminent  domain. 

9.  Limitation  on  business  of  corporations. 

10.  Liabilities  not  released  by  transfer  of  franchise. 

11.  Issuance  of  stock. 

12.  Elections  for  directors. 

13.  State  credit  not  to  be  loaned. 

14.  Corporations  must  maintain  a  place  of  business. 

15.  Foreign  corporations. 

16.  Corporations  may  be   sued,   where. 

17.  Common  carriers. 

18.  Limit  on  interest  of  an  officer  or  agent. 

19.  Public  officers  not  to  receive  passes. 

20.  Earnings  not  to  be  shared — Rates  not  to  be  increased. 

21.  Discrimination  forbidden. 

22.  Railroad  commissioners — Number,  election,  term,  quali- 

fication, powers  and  duties,  how  removed  from  office. 

23.  Railroad  districts. 

24.  Legislature  to  enforce  this  article. 


Corporations,  how  formed. 

Section  1.  Corporations  may  be  formed  under  general  laws, 
liut  shall  not  be  created  by  special  act.  All  laws  now  in  force  in 
Ihis  state  concerning  corporations,  and  all  laws  that  may  be 
Iioreafter  passed  pursuant  to  this  section,  may  be  altered  from 
lime  to  time  or  repealed. 

01  Cal.  38.  201  ;  64  Cal.  253  ;  73  Cal.  77  ;  77  Gal.  371 ; 
S3  Cal.  390,  413  ;  85  Cal.  347 ;  92  Cal.  310 :  109  Cal.  584 ; 
123  Cal.  527;  125  Cal.  412:  131  Cal.  33;  153  Cal.  702, 
703;  1  Cal.  App.  07;  XXXVI  Cal.  Dec.  2G4,  266,  267, 
271. 


Art.  XII,  §  2  state  constitution.  11 

Corporations,  dues  from. 

Sec.  2.  Dues  from  corporations  shall  be  secured  by  such  indi- 
vidual liability  of  the  corporators  and  other  means  as  may  be 
prescribed  by  law. 

62  Cal.  400.  4(1.3:  (J4  Cal.  253;  125  Cal.  410. 

Corporation  stockholders  and   directors,   liability  of. 

Sec.  3.  Each  stockholder  of  a  corporation,  or  joint-stock 
association,  shall  be  individually  and  personally  liable  for  such 
proportion  of  all  its  debts  and  liabilities  contracted  or  incurred, 
during  the  time  he  was  a  stockholder,  as  the  amount  of  stock  or 
shares  owned  by  him  bears  to  the  whole  of  the  subscribed  capital 
stock,  or  shares  of  the  corporation  or  association.  The  directors 
or  trustees  of  corporations  and  joint-stock  associations  shall  be 
jointly  and  severally  liable  to  the  creditors  and  stockholders  for 
all  moneys  embezzled  or  misappropriated  by  the  officers  of  such 
corporation  or  joint-stock  association,  during  the  term  of  office 
of  such  director  or  trustee. 

Nothing  in  the  preceding  paragraph  of  this  section  shall  be 
held  to  apply  to  any  exposition  company  organized  to  promote 
and  carry  on  any  international  exposition  or  world's  fair  within 
the  State  of  California,  and  the  liability  of  stockholders  in  any 
such  exposition  company  shall  be  and  the  same  is  hereby  limited 
to  an  amount  not  exceeding  the  par  value  of  the  stock  of  said 
corporation  subscribed  for  by  such  stockholders.  [Amendment 
adopted  November  3,  1908.] 

[Original  section.]  Sec.  8.  Each  stockholder  of  a  corpora- 
tion or  joint-stock  association  shall  be  individually  and  person- 
ally liable  for  such  proportion  of  all  its  debts  and  liabilities  con- 
tracted or  incurred  during  the  time  he  was  a  stockholder,  as  the 
amount  of  stock  or  shares  owned  by  him  bears  to  the  whole  of 
the  subscribed  capital  stock  or  shares  of  the  corporation  or  asso- 
ciation. The  directors  or  trustees  of  corporations  and  joint- 
stock  associations  shall  be  jointly  and  severally  liable  to  the 
creditors  and  stockholders  for  all  moneys  embezzled  or  misappro- 
priated by  the  officers  of  such  corporation  or  joint-stock  associa- 
tion during  the  term  of  office  of  such  director  or  trustee. 

59  Cal.  280 ;  62  Cal.  448,  461,  403  ;  63  Cal.  236,  239 ;  87 
Cal.  32;  97  Cal.  95;  108  Cal.  425;  111  Cal.  63,  66,  67, 
71 ;  114  Cal.  331 ;  116  Cal.  3,84 ;  122  Cal.  523,  524  ;  124 
Cal.  150;  125  Cal.  410,  412;  136  Cal.  437,  449;  142  Cal. 
384 ;  143  Cal.  224 ;  147  Cal.  640 ;  4  Cal.  App.  292,  293 ; 
5  Cal.  App.  705  ;  XXXVI  Cal.  Dec.  285. 


12  STATE   CONSTITUTION.  ART.  XII,  §  4 

Corporations,  what  they  include. 

Sec.  4.  The  term  corporations,  as  used  in  this  article,  shall 
be  construed  to  include  all  associations  and  joint-.stock  com- 
panies having  any  of  the  powers  or  privileges  of  corporations 
not  possessed  by  individuals  or  partnerships,  and  all  corporations 
shall  have  the  right  to  sue  and  be  subject  to  be  sued,  in  all 
courts,  in  like  cases  as  natural  persons. 

65  Cal.  123  ;  95  Cal.  592 ;  153  Cal.  703. 

Banking  corporations. 

Sec.  5.  The  legislature  shall  have  no  power  to  pass  any  act 
granting  any  charter  for  banking  purposes,  but  corporations  or 
associations  may  be  formed  for  such  purposes  under  general 
laws.  No  corporation,  association,  or  individual  shall  issue  or 
put  in  circulation,  as  money,  anything  but  the  lawful  money  of 
the  United  States. 

73  Cal.  77  ;  XXXVI  Cal.  Dec.  264,  267. 

Existing  charters,  invalid  in  certain  cases. 

Sec.  6.  All  existing  charters,  grants,  franchises,  special  or 
exclusive  privileges,  under  which  an  actual  and  bona  fide  organ- 
ization shall  not  have  taken  place,  and  business  been  commenced 
in  good  faith,  at  the  time  of  the  adoption  of  this  constitution, 
shall  thereafter  have  no  validity. 

Franchises  or  charters  not  to  be  extended  by  legislature — Exten- 
sion of  corporate  existence. 
Sec.  7.  The  legislature  shall  not  extend  any  franchi.se  or 
charter,  nor  remit  the  forfeiture  of  any  franchise  or  charter  of 
any  quasi-public  corporation  now  existing  or  which  shall  here- 
after exist  under  the  laws  of  this  state.  The  term  of  existence 
of  any  other  corporation  now  or  hereafter  existing  under  the 
laws  of  this  state,  may  be  extended,  at  any  time  prior  to  the 
expiration  of  its  corporate  existence,  for  a  period  not  exceeding 
fifty  years  from  the  date  of  such  extension,  by  the  vote  or 
written  consent  of  stockholders  representing  two  thirds  of  its 
capital  stock  or  of  two  thirds  of  the  members  thereof.  A  cer- 
tificate of  such  vote  or  consent  shall  be  signed  and  sworn  to  by 
the  president  and  secretary,  and  by  a  majority  of  the  directors 
of  the  corporation  and  filed  and  certified  in  the  manner  and 
upon  payment  of  fees  required  by  law  for  filing  and  certifying 


Art.  XII,  §  7  state  constitution.  13 

articles  of  incorporation,  and  thereupon  tlie  term  of  tlie  corpora- 
tion shall  be  extended  for  the  period  specified  in  such  certificate, 
and  such  corporation  shall  thereafter  pa.y  all  annual  or  other 
fees  required  by  law  to  be  paid  by  corporations.  [Amendment 
adopted  November  3,  1908.] 

[Original  section.]  Sec.  7.  The  legislature  shall  not  extend 
any  franchise  or  charter,  nor  remit  the  forfeiture  of  any  fran- 
chise or  charter,  of  any  corporation  now  existing,  or  which  shall 
hereafter  exist,  under  the  laws  of  this  state. 

91  Cal.  340;  121  Cal.  19;   XXXVI  Cal.  Dec.  262,  2G3, 

268,  270. 

Corporate  property  subject  to  eminent  domain. 

Sec.  S.  The  exercise  of  the  right  of  eminent  domain  shall 
never  be  so  abridged  or  construed  as  to  prevent  the  legislature 
from  taking  the  property  and  franchises  of  incorporated  com- 
panies and  subjecting  them  to  public  use  the  same  as  the  prop- 
erty of  individuals ;  and  the  exercise  of  the  police  power  of  the 
state  shall  never  be  so  abridged  or  construed  as  to  permit  cor- 
porations to  conduct  their  business  in  such  manner  as  to  infringe 
the  rights  of  individuals  or  the  general  well-being  of  the  state. 


Limitation  on  business  of  corporations. 

Sec.  9.  No  corporation  shall  engage  in  any  business  other 
than  that  expressly  authorized  in  its  charter  or  the  law  under 
which  it  may  liave  been  or  may  hereafter  be  organized ;  nor 
shall  it  hold  for  a  longer  period  than  five  years  any  real  estate, 
except  such  as  may  be  necessary  for  carrying  on  its  business. 

107  Cal.  643 ;  133  Cal.  612  ;  143  Cal.  206  ;  3  Cal.  App. 

710. 

Liabilities  not  released  by  transfer  of  franchise. 

Sec.  10.  The  legislature  shall  not  pass  any  laws  permitting 
the  leasing  or  alienation  of  any  franchise,  so  as  to  relieve  the 
franchise  or  property  held  thereunder  from  the  liabilities  of  the 
lessor  or  grantor,  lessee  or  grantee,  contracted  or  incurred  in  the 
operation,  use,  or  enjoyment  of  such  franchise,  or  any  of  its 
privileges. 

72  Cal.  466;  116  Cal.  100;  152  Cal.  586;  XXXVI  Cal. 

Dec.  223. 


14  STATE   CONSTITUTION.  AET.  XII,  §  11 

Issuance  of  stock. 

Sec.  11.  No  corporation  shall  issue  stock  or  bonds,  except 
for  money  paid,  labor  done,  or  property  actually  received,  and 
all  fictitious  increase  of  stock  or  indebtedness  .shall  be  void.  The 
stock  and  bonded  indebtedness  of  corporations  shall  not  be 
increased,  except  in  pursuance  of  general  law,  nor  without  the 
consent  of  the  persons  holding  the  larger  amount  in  value  of  the 
stock,  at  a  meeting  called  for  that  purpose,  giving  sixty  days' 
public  notice,  as  may  be  provided  by  law. 

56  Cal.  651,  652,  654,  655 ;  59  Cal.  331 ;  61  Cal.  202 ;  64 
Cal.  243,  253 ;  65  Cal.  617 ;  72  Cal.  56 ;  73  Cal.  77 ;  93 
Cal.  307,  308,  309,  315 ;  114  Cal.  331 ;  117  Cal.  344 ;  135 
Cal.  250,  582,  585;  147  Cal.  582;  152  Cal.  457;  2  Cal. 
App.  130^  XXXVI  Cal.  Dec.  134. 

Elections  for  directors. 

Sec.  12.  In  all  elections  for  directors  or  managers  of  cor- 
porations every  stockholder  shall  have  the  right  to  vote,  in  person 
or  by  proxy,  the  number  of  shares  of  stock  owned  by  him,  for  as 
many  persons  as  there  are  directors  or  managers  to  be  elected,  or 
to  cumulate  said  shares  and  give  one  candidate  as  many  votes  as 
the  number  of  directors  multiplied  by  the  number  of  his  shares 
of  stock  shall  equal,  or  to  distribute  them,  on  the  same  prin- 
ciple, among  as  many  candidates  as  he  shall  think  fit ;  and  such 
directors  or  managers  shall  not  be  elected  in  any  other  manner, 
except  that  members  of  cooperative  societies  formed  for  agricul- 
tural, mercantile,  and  manufacturing  purposes  may  vote  on  all 
questions  affecting  such  societies  in  manner  prescribed  by  law. 
67  Cal.  535 ;  73  Cal.  77  ;  109  Cal.  597. 

State  credit  not  to  be  loaned. 

Sec.  13.  The  state  shall  not,  in  any  manner,  loan  its  credit, 
nor  shall  it  subscribe  to  or  be  interested  in  the  stock  of  any  com- 
pany, association,  or  corporation. 

Corporations  must  maintain  a  place  of  business. 

Sec.  14.  Every  corporation  other  than  religious,  educational, 
or  benevolent,  organized  or  doing  business  in  this  state,  shall 
have  and  maintain  an  office  or  place  in  this  state  for  the  transac- 
tion of  its  business,  where  transfers  of  stock  shall  be  made,  and 


Art.  XII,  §  14  state  constitution.  15 

in  which  shall  be  kept,  for  inspection  by  every  person  having  an 
interest  therein,  and  legislative  committees,  books  in  which  shall 
be  recorded  the  amount  of  capital  stock  subscribed,  and  by 
whom ;  the  names  of  the  owners  of  its  stock,  and  the  amounts 
owned  by  them,  respectively  ;  the  amount  of  stock  paid  in,  and 
bj'  whom ;  the  transfers  of  stock ;  the  amount  of  its  assets  and 
liabilities,  and  the  names  and  places  of  residence  of  its  officers. 
135  Cal.  584,  025 ;  2  Cal.  App.  G39. 

Foreign  corporations. 

Sec.  15.  No  corporation  organized  outside  the  limits  of  this 
state  shall  be  allowed  to  transact  business  within  this  state  on 
more  favorable  conditions  than  are  prescribed  by  law  to  similar 
corporations  organized  under  the  laws  of  this  state. 

97  Cal.  28 ;  99  Cal.  133 ;  115  Cal.  311 ;  140  Cal.  651  ; 
XXXVI  Cal.  Dec.  329. 

Corporations  may  be  sued,  where. 

Sec.  10.  A  corporation  or  association  may  be  sued  in  the 
county  where  the  contract  is  made  or  is  to  be  performed,  or 
where  the  obligation  or  liability  arises  or  the  breach  occurs ;  or 
in  the  county  where  the  principal  place  of  business  of  such  cor- 
poration is  situated,  subject  to  the  power  of  the  court  to  change 
the  place  of  trial,  as  in  other  cases. 

GO  Cal.  209 ;  71  Cal.  488,  490 ;  73  Cal.  183,  184,  185  ;  83 
Cal.  409,  473,  493;  88  Cal.  Oil;  94  Cal.  137;  97  Cal. 
138.  043;  98  Cal.  167;  102  Cal.  48;  100  Cal.  58;  107 
Cal.  380;  108  Cal.  202;  115  Cal.  200;  117  Cal.  52;  122 
Cal.  049 ;  134  Cal.  587,  588,  589,  590 ;  136  Cal.  439 ;  141 
Cal.  315 ;  144  Cal.  205,  207 ;  150  Cal.  408,  474,  475 ;  151 
Cal.  159;  4  Cal.  App.  370;  6  Cal.  App.  87;  VIII  Cal. 
App.  Dec.  272. 

Common  carriers. 

Sec.  17.  All  railroad,  canal,  and  other  transportation  com- 
panies are  declared  to  be  common  carriers,  and  sub.icct  to  legis- 
lative control.  Any  association  or  corporation,  organized  for  the 
purpose  under  the  laws  of  this  state,  shall  have  the  right  to  con- 
nect at  the  state  line  with  railroads  of  other  states.  Every  rail- 
road company  shall  have  the  right  with  its  road  to  intersect, 
connect  with,  or  cross  any  other  railroad,  and  shall  receive  and 


16  STATE    CONSTITUTION.  AkT.  XII,  §  17 

transport  each  the  other's  pa.ssengers,  tonnage,  and  cars,  without 
delay  or  discrimination. 

132  Cal.  6S5  ;  2  Cal.  App.  560 ;  3  Cal.  App.  G83. 

Limit  on   interest  of  an  officer  or  agent. 

Sec.  18.  No  president,  director,  officer,  agent,  or  employee  of 
any  railroad  or  canal  company  shall  be  interested,  directly  or 
indirectly,  in  the  furnishing  of  material  or  supplies  to  such  com- 
pany, nor  in  the  business  of  transportation  as  a  common  carrier 
of  freight  or  passengers  over  the  works  owned,  leased,  controlled, 
or  worked  by  such  company,  except  such  interest  in  the  business 
of  transportation  as  lawfully  flows  from  the  ownership  of  stock 
therein. 

132  Cal.  G86. 

Public  officers  not  to  receive  passes. 

Sec.  19.  No  railroad  or  other  transportation  company  shall 
grant  free  passes,  or  passes  or  tickets  at  a  discount,  to  any  per- 
son holding  any  office  of  honor,  trust,  or  profit  in  this  state ;  and 
the  acceptance  of  any  such  pass  or  ticket  by  a  member  of  the 
legislature,  or  any  public  officer,  other  than  railroad  commis- 
sioner, shall  work'  a  forfeiture  of  his  office. 

61  Cal.  201,  202;  114  Cal.  476;  132  Cal.  686;  145  Cal. 

639. 

Earnings  not  to  be  sliared — Rates  not  to  be  increased. 

Sec.  20.  No  railroad  company  or  other  common  carrier  shall 
combine  or  make  any  contract  with  the  owners  of  any  vessel  that 
leaves  port  or  makes  port  in  this  state,  or  with  any  common  car- 
rier, by  which  combination  or  contract  the  earnings  of  one  doing 
the  carrying  are  to  be  shared  by  the  other  not  doing  the  carry- 
ing. And  whenever  a  railroad  corporation  shall,  for  the  purpose 
of  competing  with  any  other  common  carrier,  lower  its  rates  for 
transportation  of  passengers  or  freight  from  one  point  to  another, 
such  reduced  rates  shall  not  be  again  raised  or  increased  from 
such  standard  without  the  consent  of  the  governmental  authority 
in  which  shall  be  vested  the  power  to  regulate  fares  and  freights. 
132  Cal.  684,  686 ;  133  Cal.  26,  28 ;  144  Cal.  184,  193. 


AhT.  XII,  §  21  STATE  CONSTITUTION.  17 

Discrimination  forbidden. 

Sec.  21.  No  discrimination  in  charges  or  facilities  for  trans- 
portation shall  be  made  by  any  railroad  or  other  transportation 
company  between  places  or  persons,  or  in  the  facilities  for  the 
transportation  of  the  same  classes  of  freight  or  passengers  within 
this  state,  or  coming-  from  or  going  to  any  other  state.  Persons 
and  property  transported  over  any  railroad,  or  by  any  other 
transportation  company  or  individnal,  shall 'be  delivered  at  any 
station,  landing,  or  port,  at  charges  not  exceeding  the  charges  for 
the  transportation  of  persons  and  property  of  the  same  class,  in 
the  same  direction,  to  any  more  distant  station,  port,  or  landing. 
Excursion  and  commutation  tickets  may  be  issued  at  special 
rates. 

109  Cal.  322 ;  132  Cal.  684,  686 ;  144  Cal.  193. 

Railroad    commissioners — Number,    election,    term,    qualifications, 
powers  and  duties,  how  removed  from  office. 

Sec.  22.  The  state  shall  be  divided  into  three  districts  as 
nearly  equal  in  population  as  practicable,  in  each  of  which  one 
railroad  commissioner  shall  be  elected  by  the  qualified  electors 
thereof  at  the  regular  gnlaernatorial  elections,  whose  salary  shall 
be  fixed  by  law,  and  whose  term  of  office  shall  be  four  years, 
commencing  on  the  first  Monday  after  the  first  day  of  January 
next  succeeding  their  election.  Said  commissioners  shall  be 
qualified  electors  of  this  state  and  of  the  district  from  which 
they  are  elected,  and  shall  not  be  interested  in  any  railroad  cor- 
poration, or  other  transportation  company,  as  stockholder,  cred- 
itor, agent,  attorney,  or  employee ;  and  the  act  of  a  majority  of 
said  commissioner.s  shall  be  deemed  the  act  of  said  commission. 
Said  commissioners  shall  have  the  power,  and  it  shall  be  their 
duty,  to  establish  rates  of  charges  for  the  transportation  of  pas- 
sengers and  freight  by  railroad  or  other  transportation  com- 
panies, and  publish  the  same  from  time  to  time,  with  such 
changes  as  they  may  make ;  to  examine  the  books,  records,  and 
papers  of  all  railroad  and  other  transportation  companies,  and 
for  this  purpose  they  shall  have  power  to  issue  subpoenas  and  all 
other  necessary  process  ;  to  hear  and  determine  complaints  against 
railroad  and  other  transportation  companie.s,  to  send  for  persons 
and  papers,  to  administer  oaths,  take  testimony,  and  punish  for 
contempt  of  their  orders  and  processes,  in  the  same  manner  and 


18  STATE  CONSTITUTION.  ART.  XII,  §  22 

to  the  same  extent  as  courts^  of  record,  and  enforce  their  decisions 
and  correct  abuses  through  the  medium  of  the  courts.  Said  com- 
missioners shall  prescribe  a  uniform  system  of  accounts  to  be 
kept  by  all  such  corporations  and  companies.  Any  railroad  cor- 
poration or  transportation  company  which  shall  fail  or  refuse  to 
conform  to  such  rates  as  shall  be  established  by  such  commis- 
sioners, or  shall  charge  rates  in  excess  thereof,  or  shall  fail  to 
keep  their  accounts  -in  accordance  with  the  system  prescribed  by 
the  commission,  shall  be  fined  not  exceeding  twenty  thousand  dol- 
lars for  each  offense ;  and  every  officer,  agent,  or  employee  of  any 
such  corporation  or  company,  who  shall  demand  or  receive  rates 
in  excess  thereof,  or  who  shall  in  any  manner  violate  the  provi- 
sions of  this  section,  shall  be  fined  not  exceeding  five  thousand 
dollars,  or  to  be  imprisoned  in  the  county  jail  not  exceeding  one 
year.  In  all  controversies,  civil  or  criminal,  the  rates  of  fares 
and  freights  established  by  said  commission  shall  be  deemed  con- 
clusively just  and  reasonable,  and  in  any  action  against  such  cor- 
poration or  company  for  damages  sustained  by  charging  excessive 
rates,  the  plaintiff,  in  addition  to  the  actual  damage,  may,  in  the 
discretion  of  the  judge  or  jury,  recover  exemplary  damages.  Said 
commission  shall  report  to  the  governor,  annually,  their  proceed- 
ings, and  such  other  facts  as  may  be  deemed  important.  Nothing 
in  this  section  shall  prevent  individuals  from  maintaining  actions 
against  any  of  such  companies.  The  legislature  may,  in  addi- 
tion to  any  penalties  herein  prescribed,  enforce  this  article  by 
forfeiture  of  charter  or  othenvise,  and  may  confer  such  further 
powers  on  the  commissioners  as  shall  be  necessary,  to  enable 
them  to  perform  the  duties  enjoined  on  them  in  this  and  the  fore- 
going section.  The  legislature  shall  have  power,  by  a  two  thirds 
vote  of  all  the  members  elected  to  each  house,  to  remove  any  one 
or  more  of  said  commissioners  from  oflSce,  for  dereliction  of  duty, 
or  corruption,  or  incompetency ;  and  whenever,  from  any  cause, 
a  vacancy  in  office  shall  occur  in  said  commission,  the  governor 
shall  fill  the  same  by  the  appointment  of  a  qualified  person 
thereto,  who  shall  hold  office  for  the  residue  of  the  unexpired 
term,  and  until  his  successor  shall  have  been  elected  and  qualified. 

56  Cal.  102 ;  79  Cal.  1G3  ;  105  Cal.  320,  544,  555 ;  132  Cal. 

078,  684,  687,  689,  690 ;  133  Cal.  26,  27.  28 ;  142  Cal.  225. 


Art.  XII,  §  23  state  constitution.  19 

Railroad  districts. 

►Sec.  23.  Until  the  legislature  sliall  district  the  state,  the  fol- 
lowing shall  be  the  railroad  districts :  The  first  district  shall  be 
composed  of  the  counties  of  Alpine,  Amador,  Butte,  Calaveras, 
Colusa,  Del  Norte,  El  Dorado,  Humboldt,  Lake,  Lassen,  Mendo- 
cino, Modoc,  Napa,  Nevada,  Placer,  Plumas,  Sacramento,  Shasta, 
Sierra,  Siskiyou,  Solano,  Sonoma,  Sutter,  Tehama,  Trinity,  Yolo, 
and  Yuba,  from  which  one  railroad  commissioner  shall  be 
elected.  The  second  district  shall  be  composed  of  the  counties 
of  Marin,  San  Francisco,  and  San  Mateo,  from  which  one  rail- 
road commissioner  shall  be  elected.  The  third  district  shall  be 
composed  of  the  counties  of  Alameda,  Contra  Costa,  Fresno, 
Inyo,  Kern,  Los  Angeles,  Mariposa,  Merced,  Mono,  Monterey, 
San  Benito,  San  Bernardino,  San  Diego,  San  Joaquin,  San  Luis 
Obispo,  Santa  Barbara,  Santa  Clara,  Santa  Cruz,  Stanislaus, 
Tulare,  Tuolumne,  and  Ventura,  from  which  one  railroad  com- 
missioner shall  be  elected. 

132  Cal.  G79 ;  142  Cal.  225. 

Legislature  to  enforce  this  article. 

Sec.  24.  The  legislature  shall  pa.-s  all  laws  necessary  for  the 
enforcement  of  the  provisions  of  this  article. 


Article  XIII. 

REVENUE    AND    TAXATION. 

Sec.    1.     Property   to   be  taxed  according  to  value — Exemptions. 
1M;-Cliurches  exempt  from  taxation. 
4.     Taxation  of  mortgages  and  securities. 
9.     State  and  county  boards  of  equalization. 

10.  Property,  where  and  by  wliom  asses.sed. 

11.  Income  taxes. 

13.     Legislature  to  pass  laws  to  enforce  taxation. 

Property  to  be  taxed  according  to  value — Exemptions. 

Section  1.  All  property  iu  the  state  not  exempt  under  the 
laws  of  the  United  States  shall  be  taxed  in  proportion  to  its 
value,  to  be  ascertained  as  provided  by  law.  The  word  "prop- 
erty," as  used  in  this  article  and  section,  is^ereby  declared  to 
include  moneys,  credits,  bonds,  stocks,  dues,  franchises,  and  all 
other  matters  and  things,  real,  personal,  and  mixed,  capable  of 


20  STATE  CONSTITUTION.  ArT.  XIII,  §  1 

private  ownership  ;  provided,  that  property  used  for  free  public 
libraries  and  free  museums,  growing  crops,  property  used  exclu- 
sively for  public  schools,  and  such  as  may  belong  to  the  United 
States,  this  state,  or  to  any  county  or  municipal  corporation 
within  this  state,  shall  be  exempt  from  taxation.  The  legisla- 
ture may  provide,  except  in  case  of  credits  secured  by  mortgage 
or  trust  deed  for  a  deduction  from  credits  of  debts  due  to  bona 
fide  residents  of  this  state.  [Amendment  adopted  November  6, 
1S94.] 

[Original  section.]  Section  1.  All  property  in  the  state 
not  exempt  under  the  laws  of  the  United  States,  shall  be  taxed 
in  proportion  to  its  value,  to  be  ascertained  as  provided  by  law. 
The  word  "property."  as  used  in  this  article  and  section,  is 
hereby  declared  to  include  moneys,  credits,  bonds,  stocks,  dues, 
franchises,  and  all  other  matters  and  things,  real,  personal,  and 
mixed,  capable  of  private  ownership ;  provided,  that  growing 
crop.s,  property  used  exclusively  for  public  schools,  and  such  as 
may  belong  to  the  United  States,  this  state,  or  to  any  county  or 
municipal  corporation  within  this  state,  shall  be  exempt  from 
taxation.  The  legislature  may  provide,  except  in  the  case  of 
credits  secured  by  mortgage  or  trust  deed,  for  a  deduction  from 
credits  of  debts  due  to  bona  fide  residents  of  this  state. 

54  Cal.  353,  3G0,  361 ;  56  Cal.  202  ;  57  Cal.  594,  600,  603, 
616 ;  58  Cal.  137,  138 ;  59  Cal.  336 :  62  Cal.  108,  112,  114 ; 
64  Cal.  507 ;  65  Cal.  271,  457  ;  66  Cal.  603 ;  77  Cal.  138 ; 
83  Cal.  406 ;  97  Cal.  220.  324  ;  103  Cal.  70 ;  108  Cal.  192, 
193;  111  Cal.  80;  113  Cal.  397;  116  Cal.  23,  24;  117 
Cal.  86 ;  119  Cal.  521,  522  ;  128  Cal.  592,  612 ;  131  Cal. 
362,  613 ;  132  Cal.  268,  600 ;  134  Cal.  478 ;  137  Cal.  518, 
519,  524,  525  ;  139  Cal.  210 ;  142  Cal.  225,  284,  290 ;  148 
Cal.  85;  149  Cal.  583;  152  Cal.  767;  153  Cal.  778;  2 
Cal.  App.  68,  595 ;  XXXVII  Cal.  Dec.  159. 

Churches  exempt  from  taxation. 

Sec.  11/^.  All  buildings,  and  so  much  of  the  real  property  on 
which  they  are  situated  as  may  be  required  for  the  convenient 
use  and  occupation  of  said  buildiugs,  when  the  same  are  used 
solely  and  exclusively  for  religious  worship,  shall  be  free  from 
taxation  ;  provided,  that  no  building  so  used  which  may  be  rented 
for  religious  purposes  and  rent  received  by  the  owner  therefor, 
shall  be  exempt  from  taxation.  [Islew  section;  adopted  Novem- 
ber 6,  1900.] 


Art.  XIII,  §  4  state  constitution.  21 

Taxation  of  mortgages  and  securities. 

Sec  4.  A  mortgage,  deed  of  trust,  contract,  or  other  obliga- 
tion by  which  a  debt  is  secured,  shall,  for  the  purpose  of  assess- 
ment and  taxation,  be  deemed  and  treated  as  an  interest  in  the 
property  affected  thereby.  Except  as  to  railroad  and  other 
quasi-public  corporations,  in  case  of  debt  so  secured,  the  value  of 
the  property  affected  by  such  mortgage,  deed  of  trust,  contract, 
or  obligation,  less  the  value  of  such  security,  shall  be  assessed 
and  taxed  to  the  owner  of  the  property,  and  the  value  of  such 
security  shall  be  assessed  and  taxed  to  the  owner  thereof,  in  the 
county,  city,  or  district  in  which  the  property  affected  thereby  is 
situate.  The  taxes  so  levied  shall  be  a  lien  upon  the  property 
and  security,  and  may  be  paid  by  either  party  to  such  security  ; 
if  paid  by  the  owner  of  the  security,  the  tax  so  levied  upon  the 
property  affected  thereby  shall  become  a  part  of  the  debt  so 
secured ;  if  the  owner  of  the  property  shall  pay  the  tax  so  levied 
on  such  security,  it  shall  constitute  a  payment  thereon,  and  to 
the  extent  of  such  payment,  a  full  discharge  thereof ;  provided, 
that  if  any  such  security  or  indebtedness  shall  be  paid  by  any 
such  debtor  or  debtors  after  assessment  and  before  the  tax  levy, 
the  amount  of  such  levy  may  likewise  be  retained  by  such  debtor 
or  debtors,  and  shall  be  computed  according  to  the  tax  levy  for 
the  preceding  year. 

57  Cal.  600 ;  59  Cal.  543,  544  ;  GO  Cal.  36,  37,  58,  371 ;  65 
Cal.  383,  384  ;  60  Cal.  213  ;  72  Cal.  36  ;  76  Cal.  293 ;  77 
Cal.  137,  138  ;  83  Cal.  396 ;  84  Cal.  301 ;  89  Cal.  202  ;  91 
Cal.  11;  96  Cal.  625,  627,  635,  637;  99  Cal.  609;  113 
Cal.  397;  118  Cal.  492,  493;  121  Cal.  343;  123  Cal.  355; 
128  Cal.  592,  593,  594,  595.  597,  598,  610,  611 ;  129  Cal. 
298 ;  131  Cal.  361 :  134  Cal.  86,  87 ;  144  Cal.  435,  436 ; 
145  Cal.  55  ;  153  Cal.  615. 

State  and  county  boards  of  equalization. 

Sec.  9.  A  state  board  of  equalization,  consisting  of  one  mem- 
ber from  each  congressional  district  in  this  state,  as  the  same 
existed  in  eighteen  hundred  and  seventy-nine,  shall  be  elected 
by  the  qualified  electors  of  their  respective  districts,  at  the 
general  election  to  be  held  in  the  year  one  thousand  eight  hun- 
dred and  eighty-six,  and  at  each  gubernatorial  election  there- 
after, whose  term  of  office  shall  be  for  four  years ;  whose  duty  it 
shall  be  to  equalize  the  valuation  of  the  taxable  property  in  the 


22  STATE   CONSTITUTION.  AUT.  XIII,  §  ^ 

several  counties  of  the  state  for  the  purposes  of  taxation.  The 
controller  of  state  shall  be  ex  officio  a  member  of  the  board. 
The  boards  of  supervisors  of  the  several  counties  of  the  state 
shall  con.stitute  boards  of  equalization  for  their  respective  coun- 
ties, whose  duty  it  shall  be  to  equalize  the  valuation  of  the  tax- 
able property  in  the  county  for  the  purpose  of  taxation  ;  provided, 
such  state  and  county  boards  of  equalization  are  hereby  author- 
ized and  empowered,  under  such  rules  of  notice  as  the  county 
boards  may  prescribe  as  to  county  assessments,  and  under  such 
rules  of  notice  as  the  state  board  may  prescribe  as  to  the  action 
of  the  state  board,  to  increase  or  lower  the  entire  assessment  roll, 
or  any  assessment  contained  therein,  so  as  to  equalize  the  assess- 
m&nt  of  the  property  contained  in  said  assessment  roll,  and  make 
the  assessment  conform  to  the  true  value  in  money  of  the  prop- 
erty contained  in  said  roll ;  provided,  that  no  board  of  equaliza- 
tion shall  raise  any  mortgage,  deed  of  trust,  contract  or  other 
obligation  by  which  a  debt  is  secured,  money,  or  solvent  credits, 
above  its  face  value.  The  present  state  board  of  equalization 
shall  continue  in  office  until  their  successors,  as  herein  provided 
for,  shall  be  elected  and  shall  qualify.  The  legislature  shall 
have  poAver  to  redistrict  the  state  into  four  districts,  as  nearly 
equal  in  population  as  practical,  and  to  provide  for  the  elections 
of  members  of  said  board  of  equalization.  [Amendment  adopted 
November  J,,  188.'|.^ 

[Original  section.^  Sec.  9.  A  state  board  of  equalization, 
consisting  of  one  member  from  each  congressional  district  in  this 
state,  shall  be  elected  by  the  qualified  electors  of  their  respective 
districts  at  the  general  election  to  be  held  in  the  year  eighteen 
hundred  and  seventy-nine,-  whose  term  of  office,  after  those  first 
elected,  shall  be  four  years,  whose  duty  it  shall  be  to  equalize 
the  valuation  of  the  taxable  property  of  the  several  counties  in 
the  state  for  the  purposes  of  taxation.  The  controller  of  state 
shall  be  ex  officio  a  member  of  the  board.  The  boards  of  super- 
visors of  the  several  counties  of  the  state  shall  constitute  boards 
of  equalization  for  their  respective  counties,  whose  duty  it  shall  be 
to  equalize  the  -valuation  of  the  taxable  property  in  the  county 
for  the  purpose  of  taxation ;  provided,  such  state  and  county 
boards  of  equalization  are  hereby  authorized  and  empowered, 
under  such  rules  of  notice  as  the  county  boards  may  prescribe 
as  to  the  county  assessments,  and  under  such  rules  of  notice  as 
the  state  board  may  prescribe  as  to  the  action  of  the  state 
board,  to  increase  or  lower  the  entire  assessment  roll,  or  any 
assessment  contained  therein,  so  as  to  equalize  the  assessment 
of  the  property  contained  in  said  assessment  roll,  and  make  the 


Art.  XIII.  §  9  state  constitution.  '23 

assessment  conform  to  the  true  value  in  money  of  the  property 

contained  in  said  roll. 

56  Cal.  102,  195 ;  59  Cal.  324,  329,  334 ;  GO  Cal.  27,  30, 
60 ;  61  Cal.  55,  102 ;  67  Cal.  624,  625 ;  68  Cal.  497 ;  69 
Cal.  474;  97  Cal.  324  ;  113  Cal.  401. 

Property,  where  and  by  whom  assessed. 

Sec.  10.  All  property,  except  as  hereinafter  in  this  section 
provided,  shall  be  assessed  in  the  county,  city,  city  and  county, 
town,  township,  or  district  in  which  it  is  situated,  in  the  manner 
prescribed  by  law.  The  franchise,  roadway,  roadbed,  rails,  and 
rolling  stock  of  all  railroads  operated  in  more  than  one  county  in 
this  state  shall  be  assessed  by  the  state  board  of  equalization 
at  their  actual  value,  and  the  same  shall  be  apportioned  to  the 
counties,  cities  and  counties,  cities,  towns,  townships,  and  dis- 
tricts in  which  such  railroads  are  located,  in  proportion  to  the 
number  of  miles  of  railway  laid  in  such  counties,  cities  and  coun- 
ties, cities,  towns,  townships,  and  districts. 

56  Cal.  201,  207;  59  Cal.  825;  60  Cal.  12,  28,  29,  31,  32, 
33,  58,  59,  60 ;  61  Cal.  255 ;  62  Cal.  565  ;  63  Cal.  467,  469, 
608  ;  64  Cal.  483  ;  82  Cal.  406  ;  83  Cal.  396,  401 ;  105  Cal. 
591 ;  125  Cal.  499 ;  128  Cal.  592,  593 ;  137  Cal.  515,  660 ; 
142  Cal.  223,  234  ;  143  Cal.  432 ;  148  Cal.  317,  322,  323 ; 
149  Cal.  84,  85,  89 ;  153  Cal.  54 ;  5  Cal.  App.  648. 

Income  taxes. 

Sec.  11.  Income  taxes  may  be  assessed  to  and  collected  from 
persons,  corporations,  joint-stock  associations,  or  companies  resi- 
dent or  doing  business  in  this  state,  or  any  one  or  more  of  them, 
in  such  cases  and  amounts,  and  in  such  manner,  as  shall  be  pre- 
scribed by  law. 

Legislature  to  pass  laws  to  enforce  taxation. 

Sec.  13.  The  legislature  shall  pass  all  laws  necessary  to 
carry  out  the  provisions  of  this  article. 

56  Cal.  202  ;  83  Cal.  394,  401,  402,  405,  406 ;  i37  Cal.  525. 


24  STATE   CONSTITUTION.  ART.  XIV,  §  I 

Article  XIV. 

WATER   AND   WATER    RIGHTS. 

Sec.  1.     Subject  to  control  of  state. 

2.     Right  to  collect  rates  is  a  franchise. 

Subject  to  control  of  state. 

Section  1.  The  use  of  all  water  now  appropriated,  or  that 
may  hereafter  be  appropriated,  for  sale,  rental,  or  distribution, 
is  hereby  declared  to  be  a  public  use,  and  subject  to  the  regula- 
tion and  control  of  the  state,  in  the  manner  to  be  prescribed  by 
law ;  provided,  that  the  rates  or  compensation  to  be  collected  by 
any  person,  company,  or  corporation  in  this  state  for  the  use  of 
water  supplied  to  any  city  and  county,  or  city,  or  town,  or  the 
inhabitants  thereof,  shall  be  fixed,  annually,  by  the  board  of 
supervisors,  or  city  and  county,  or  city,  or  town  council,  or 
other  governing  body  of  such  city  and  county,  or  city,  or  town, 
by  ordinance  or  otherwise,  in  the  manner  that  otlier  ordinances 
or  legislative  acts  or  resolutions  are  passed  by  such  body,  and 
shall  continue  in  force  for  one  year  and  no  longer.  Such  ordi- 
nances or  resolutions  shall  be  passed  in  the  month  of  February 
of  each  year,  and  take  effect  on  the  first  day  of  July  thereafter. 
Any  board  or  body  failing  to  pass  the  necessary  ordinances  or 
resolutions  fixing  water  rates,  where  necessary,  within  such  time, 
shall  be  subject  to  peremptory  process  to  compel  action,  at  the 
suit  of  any  party  interested,  and  shall  be  liable  to  such  further 
processes  and  penalties  as  the  legislature  may  prescribe.  Any 
person,  company,  or  corporation  collecting  water  rates  in  any 
city  and  county,  or  city,  or  town  in  this  state,  otherwise  than  as 
so  established,  shall  forfeit  the  franchises  and  waterworks  of 
such  person,  company,  or  corporation  to  the  city  and  county,  or 
city,  or  town,  where  the  same  are  collected,  for  the  public  use. 

53  Cal.  Gil ;  56  Cal.  237,  596 ;  60  Cal.  169,  170,  175,  176, 

177 ;  61  Cal.  4,  5,  9,  14,  25,  28,  30,  34,  37,  38,  41,  47,  50, 

53 ;  62  Cal.  209,  232 ;  67  Cal.  121 ;  69  Cal.  309 ;  74  Cal. 

573 ;  76  Cal.  370 ;  82  Cal.  302,  303,  331,  337 ;  90  Cal.  640 ; 

98  Cal.  183;  100  Cal.  125.  130,  333,  138;  105  Cal.  91; 

107  Cal.  225  ;  108  Cal.  90,  560 ;  112  Cal.  433 ;  118  Cal. 

479,  563,  565,  579;  122  Cal.  286.  288;  129  Cal.  441,  442, 

443,  444,  445,  449,  450,  451;  130  Cal.  123,  313;  139  Cal. 

28,  434,  441,  442  ;  142  Cal.  287  ;  143  Cal.  252 ;  144  Cal. 

593 ;  150  Cal.  89 ;  151  Cal.  57 ;  152  Cal.  588,  729 ;  2  Cal. 

App.  187,  413,  417. 


Art.  XIV,  §  2  state  constitution.  25 

Right  to  collect  rates  Is  a  franchise. 

Sec.  2.  The  right  to  collect  rates  or  compensation  for  the  use 
of  waters  supplied  (o  any  county,  city  and  county,  or  town,  or 
the  inhabitants  thereof,  is  a  franchise,  and  can  not  be  exercised 
except  by  authority  of  and  in  the  manner  prescribed  by  law. 

56  Cal.  o9(i ;  GO  Cal.  170 ;  Gl  Cal.  3,  35,  37,  38,  47,  50 : 
62  Cal.  108.  209.  233,  234;  82  Cal.  304;  118  Cal.  579: 
129  Cal.  441.  442.  450;  2  Cal.  App.  GOO. 

Article  XV. 

HARBOR  FRONTAGE,    ETC. 

Sec.  1.     Right  of  the  state  to  frontage. 

2.  Access  to  navigable  waters. 

3.  Tide  land.s. 

Right  of  the  state  to  frontage. 

Section  1.  The  riaht  of  eminent  domain  is  hereby  declared 
to  exist  in  the  state  to  all  frontages  on  the  navigable  waters  of 
this  state. 

123  Cal.  320.  321  ;  148  Cal.  G31. 

Access  to  navigable  waters. 

Sec.  2.  No  individual,  partnershii).  or  coiijoration,  claiming 
or  posses-sing  the  frontage  of  tidal  lands  of  a  harbor,  bay,  inlet, 
estuary,  or  other  navigable  water  in  this  state,  shall  be  permitted 
to  exclude  the  right  of  way  to  such  water  whenever  it  is  required 
for  any  public  purpose,  nor  to  destroy  or  obstruct  the  free  naviga- 
tion of  such  water  ;  and  the  legislature  shall  enact  such  laws  as 
will  give  the  most  liberal  construction  to  this  provision,  so  that 
access  to  the  navigable  waters  of  this  state  shall  be  always 
attainable  for  the  people  thereof. 
123  Cal.  321  ;  132  Cal.  106. 

Tide  lands. 

Sec.  3.  All  tids'  lauds  within  t\\o  miles  of  any  incorporated 
city  or  town  of  this  state,  and  fronting  on  the  waters  of  any 
harbor,  estuiiry,  hay.  or  iiild.  used  for  the  iiurixisrs  iif  u;i\ig;i- 
lion.  shall  Ix-  wilhln'M  troin  grani  or  sale  to  iniviili'  iktsoiis. 
par(nei-sliip.-<,  or  corpor;i(i(ins. 

123  Cal.  321  ;  l.">2  Cal.  735;  1.53  Cal.  4G. 
2— CL. 


26  STATE   CONSTITUTION.  ArT.  XVII,  §  2 

Article  XA^II. 
land  and  homestead  exemption. 

Sec.  2.     Large  land  holdings  discouraged. 

Large  land  holdings  discouraged. 

Sec.  2.  The  holding  of  large  tracts  of  land,  iiucultivated  and 
imimproved,  Viy  individuals  or  coi'poratious.  is  against  the  public 
interest,  and  should  be  discouraged  l>y  all  means  not  inconsistent 
with  the  rights  of  private  property. 

88  Cal.  455;  96  Cai.  118;  111  Cal.  4nO :  1  Cal.  Aj.p.  15U; 

3  Cal.  App.  245. 

Article  XIX. 

CHINESE. 
Sec.  2.     Corporations  not  to  employ  Chinese. 

Corporations  not  to  employ  Chinese. 

Sec.  2.  No  corporation  now  existing  or  hereafter  formed 
uniler  the  laws  of  this  state  shall,  after  the  adoption  of  this  con- 
stitution, employ,  directly  or  indirectly,  in  any  capacity,  any 
Chinese  or  Mongolian.  The  legislature  shall  pass  such  l.nws  as 
may  be  necessary  to  enforce  this  provision. 

Note. — Sec.  2.  The  provisions  of  this  section  held  to  be  in 
conflict  with  the  treaty  with  China  and  with  the  fourteenth 
amendment  to  the  constitution  of  the  United  States.  See  Ex 
IKirte  Kuback,  85  Cal.  274  ;  In  re  J'arrott,  5  Pac.  Coast  Law 
Journal.   161.      See  note  to  Pen.  C,  sees.   178,  17n.  post. 


§  7  (;ivTL  coDK.  27 


CIVIL  CODE. 


PORTIONS  RELATING  TO  PRIVATE  CORPORATIONS. 

Ed.  Note. — Certain  sections  of  the  codes  amended,  revised, 
added,  or  repealed  by  tlie  legislature  at  the  sessions  of  1905  and 
1907,  as  recommended  by  Hon.  John  F.  Davis,  commissioner  for 
the  revision  and  reform  of  the  law,  are  followed  by  explanatory 
notes  taken  fioni  the  reports  to  the  legislature  by  the  assembly 
committee  on  revision  and  reform  of  law.s,  and  revised  by  Mi-. 
Davis  during  his  term  as  such  commissioner. 


PRELIMINARY    PROVISIONS. 

Sec.    7.     Holidays. 

14.     Certain  terms  defined. 

Holidays. 

S  7.  Holidays,  within  the  moaning  of  thi.s  code,  are  every 
Sunday,  the  first  day  of  January,  the  twenty-second  day  of 
February,  the  thirlleth  day  of  May,  the  fourth  day  of  July,  the 
ninth  day  of  Septeniljer.  the  first  Monday  in  September,  the 
twelfth  day  of  October  to  be  known  as  "Discovery  Day,"  the 
twenty-fifth  day  of  December,  every  day  on  which  an  election  is 
held  throughout  the  state,  and  every  day  appointed  by  the  presi- 
dent of  the  United  States  or  by  the  governor  of  this  state  for  a 
public  fast,  thanksgiving  or  holiday.  If  the  first  day  of  January, 
the  twenty-second  day  of  Febi-uary.  the  thirtieth  day  of  May,  the 
fourth  day  of  July,  the  ninth  day  of  September,  the  twelfth  day 
of  October  or  the  twenty-lifth  day  of  December  fall  upon  a  Sun- 
day, the  Monday  following  i.s  a  holiday.  Every  Saturday  from 
twelve  o'clock  noon  until  twelve  o'clock  midnight  is  a  holiday 
as  regards  the  transaction  of  business  in  the  public  offices  of 
this  state,  and  also  in  political  divisions  thereof  where  laws. 
ordinan(,'es  or  charters  provide  that  public  offices  may  be  closed 
on  holidays ;  [)r(>vi(h'd.  this  shall  not  be  construed  to  prevent  or 


2S  CIVIL  conE.  §  7 

iiiv:ili(l;ilc  llio  issuance,  filing,  sorvicp,  execution  or  recording  of 
■  uiy  lo^al  process  or  written  instrument  whn1e\er  on  such  Satur- 
day afternoons. 

Amended  February  19,  1909;  stats.  1909,  p.  23;  in  effect  iu 
.sixty  days. 

Similar  provisions:   Pol.  C.  §10;  Code  Civ.  Proc.  §  10. 

See,  also.  "Holidays,"  statutes  at  large.  Appendix. 

Certain   terms   defined. 

S  14.  Words  used  in  this  code  in  the  present  tense  include  the 
future  as  well  ius  the  present ;  words  used  in  the  masculine  gender 
include  the  feminine  and  neuter ;  the  singular  number  includes 
tlie  ])lural,  and  the  plural  the  singular  ;  the  word  person  includes 
a  (corporation  as  well  as  a  natural  ])ei'son.  county  includes  city 
and  count.v ;  writing  includes  printing  and  typewriting ;  oath 
incluiles  affirmation  or  declaration  ;  and  every  mode  of  oral  state- 
ment, under  oath  or  affirmation,  is  embraced  by  the  term  "tes- 
tify," and  every  written  one  in  the  term  "depose  ;"  signature  or 
subscriijtion  includes  mark,  when  the  person  can  not  write,  his 
name  being  written  near  it,  by  a  person  who  writes  his  own 
name  as  a  witness;  provided,  that  when  a  signature  is  by  mark 
it  must  in  order  that  the  same  may  be  acknowledged  or  may 
serve  as  the  signature  to  any  sworn  statement  be  witnessed  by 
two  persons  who  must  subscribe  their  own  names  as  witnesses 
thereto.  The  following  words  have  in  this  code  the  signification 
attached  to  them  in  this  section,  unless  otherwise  apparent  from 
the  context : 

1.  The  word  "'property"  includes  property  real  and  personal ; 

2.  The  words  "real  property"  are  coextensive  with  lands,  tene- 
ments, and  hereditaments  ; 

3.  The  words  "personal  property"  include  money,  goods,  chat- 
tels, things  in  action,  and  evidences  of  debt; 

-t.  The  word  "month"  means  a  calendar  moulh,  unless  other- 
wise expressed  ; 

5.  The  woi'd  "will"  includes  codicil  ; 

(>.  The  word  "section"  whenever  hereinafter  employed  refers 
to  a  section  of  this  code,  unless  some  other  code  or  statute  is 
exprejssly  mentioned. 

Amended  March  25,  1903 ;  stats.  1903,  p.  407. 

Similar  provisions:  Pol.  ('.  S17;  Code  Civ.  Proc.  §17;  Pen. 
C.  §7. 


Part  IV  civil  code.  29 


DIVISION  FIRST. 


PART  IV. 

CORPORATIONS. 

Title   I.      General  provi.sions  ai.>i>li<--:iMi-  in  all  coiiiorations. 
§§  283-410. 
II.     Insurance  corporations.     §§  414-453|>. 

III.  Railroad  corporations.      §8  454-494. 

IV.  Street  railroad  corporations.     §§  497-511. 
V.     Wagon  road  corporations.      §§  512-524. 

VI.     Bridge,    ferry,    whai-f,    chute,    and    pier    corporations. 
§§  528-531. 
VII.     Telegraph  and  telephone   corpox'ations.     §§  536-541. 
VIII.     Water  and  canal  corporations.      §§  548-552. 
IX.     Homestead  corporations.      §§  557-566. 
X.      Savings  and  loan  coiporations.      §§  571-5835. 
XI.      Mining  corporations.      §S  586-5;M). 
XIa.   Chambers  of  commerce,  etc.      §§  591-592e. 
XII.     Religious,  social,  and  benevolent  corporations. 

§§  593-605. 
XII«.   Cruelty  to  children  and  animals.      §§  607-607^;. 

XIII.  Cemetery  corporations.      §§  608-616. 

XIV.  Agricultural  fair  corporations.      SS  620-622. 
XV.     Corporations  to  furnish  light  for  public  use. 

§§  629-632. 
XVI.      Building  and  loan  associations.      SS  633-648a. 
XVII.     Colleges  and  seminaries  of  learning.      §§  649-651. 
XVIII.     Consolidation  of  colleges,  etc.      §§  652-653. 
XIX.     Co-operative  business  corpoi'ations.     §  653a. 
XX.     Co-operative  business  associations.      §§  653b-653L 
XXI.     Non-profit   co-operative   agricultural,    viticultural,    and 
horticultural  associations.      §§  653»»-653s. 
XXII.      Non-profit  co-operative  corporations.     S§  653f-653.3b. 


30  CIVIL  CODE.  Title  I 


TITLE  I. 

General  Provisions  Applicable  to  all  Corporations. 

Chap.   1.  l-'uiin;ition  of  corporations.      §§  283-321b. 

II.  Corporate  stock.     §§  322-349. 

III.  Corporate  powers.      §§  354-393. 

IV.  Extension  and  dissolution  of  corporations. 

§§  399-403.      [Old   section   403  ;   repealed.] 
V.     General  provisions  affecting  corporations.      §§  403-404. 
VI.     Foreign  corporations.      §§  405-410. 


CHAP^'ER  I. 

FORMATION    OF    CORPORATIONS. 

Art.    I.      Corporations    defined    and    how    organized.      §§  283-300a. 
II.      By-law.s,  direitors,  eloction.s,  and  meetings.      §§  301-321/>. 

AlM'ICl.lO    I. 

Corporations  Defined  and   How  Organized. 

Sec.  283.  Corporation  defined. 

284.  What  are  public  and  private  corporations. 

285.  Private  corporations,   how   formed. 

286.  For  what  purpose  private  corporations  are  formed. 

287.  How  corporations  may  continue  their  existence  under 

this  code. 
2  88.     E.xisting  corporations  not  affected. 

289.  Name  of  instrument  creating  corporation. 

290.  Articles  of  incorporation,  what  to  contain. 

290«.   Certain  corporations  to  file  affidavit,  showing  wliat. 
290i/4.Corporations  not  to  use  the  word   "trust"   in  corporate 
name  unless  authorized. 

291.  Certain   corporations  to  stale  further  facts  in  articles. 

292.  Articles,  how  subscribed  and  acknowledged. 

293.  Prerequisite  to  filing  articles  for  certain   corporations. 

Amounts  to  be  subscribed  to  be  fixed. 

2:t4.  Prerequisite  to  filing  articles  of  incorporation  for  rail- 
road, telegraph,  and  wagon  road  corporations. 

29;').  Oath  of  officer  to  subscription  of  stock  and  payment  of 
ten  per  cent  in  ca.se  of  such  corporations. 

29C.  To  file  articles  with  county  clerk  and  secretary  of 
state,  and  receive  certificate.     Term  of  existence. 


§  283  CIVIL  CODE.  31 

297.  Certified  copy  of  certificate  to  be  prima  facie  evidence. 
■ZUla.   Restoration  of  lost  original  articlo.s  of  incorporation. 

298.  Who  are  members  and  who  stockholders  of  a  corpora- 

tion. 
290.      Corporation    to    file   articles    in    county    where    it   holds 

property. 
3O0.     Banking  corporations  may  elect  to  have  capital  stock. 
."00«.   Cliange  of  name  ;  filing  copy  of  decree. 

Corporations  defined. 

S  283.  A  corporation  is  a  creature  of  tlie  law.  having  certain 
powers  and  dnties  of  a  natural  person.  Reins  created  liy  tlic 
law.  it  may  continue  for  any  length  of  time  wliich  the  law  pro- 
scribes. 

Enacted  March  21.  1872. 

51  Cal.  410:  117  Cal.  177. 

Powers  of  corporations  :   Civ.  C.  §  354  ct  saj. 

Term  of  corporate  existence  :  Civ.  C.  §§  290.  401  ;  Coustituiion 
of  California,  art.  XII,  §§  1  and  7. 

Homestead  corporations  limited  to  ten  years:   Civ.  C.  §557. 

What   are  public  and   private  corporations. 

§  284.  Corporations  are  either  public  or  private.  Tublic  cor- 
porations are  formed  or  organized  for  the  government  of  a  por- 
tion of  the  state;  all  other  corporations  are  private. 

Amended  March  30.  1S74  :  ameudts.  1.S73-4.  ]>.  107. 

51  Cal.  409;  117  Cal.  121  :  134  Cal.  478:   144  Cnl.  334: 
151  Cal.  805. 

Private   corporations,    how   formed. 

§285.  I'rivate  corporations  may  he  rorniril  liy  llic  Nohinlary 
association  of  any  three  or  more  jiersous  in  the  manner  jire- 
scribed  in  this  article.  A  majority  of  such  persons  must  be  resi- 
dents of  this  state. 

Amended  March  20,  1905  ;  stats.  1905.  p.  502. 
128  Cal.  2G0. 

Formed  only  under  general  laws:  Constitution  of  California, 
art.  XII,  §  1. 

For  what  purpose   private  corporations  are  formed. 

S  286.  rri\ate  coi-porations  may  be  formed  for  nny  puriio.se 
for  which  in(li\iduals  may  lawfully  associate  themselves. 

Amended  March  30.  1874:  ameudts.  1873-4,  p.  198. 

52  Cal.  00;   53  Cal.  279 ;' 109  Cal.  590;   113  Cal.  531; 
144  Cal.  594 ;  152  Cal.  457,  463. 


32  CIVIL  CODE.  §  287 

How  corporations  may  continue  tlieir  existence   under  tliis  code. 

S  287.  Auy  corporatiou  existing  ou  tho  first  day  of  .January. 
one  thousand  eight  hundred  and  seventy-three,  formed  under  the 
laws  of  this  state,  and  still  existing,  which  has  not  already 
elected  to  continue  its  existence,  under  the  provisions  of  this 
code  applicable  thereto,  may.  at  any  time  hereafter,  make  such 
election  by  the  unanimous  vote  of  all  its  directors,  or  such 
election  may  be  made  at  any  annual  meeting  of  the  stockholders 
or  members,  or  at  any  meeting  called  by  the  directors  expressly 
for  considering  the  subject,  if  voted  by  stockholders  representing 
a  majority  of  the  capital  stock,  or  by  a  majority  of  the  members, 
or  may  be  made  by  the  directors  upon  the  written  consent  of 
that  number  of  such  stockholders  or  members.  A  certificate  of 
the  action  of  the  directors,  signed  by  them  and  their  secretary, 
when  the  election  is  made  by  their  unanimous  vote,  or  upon  the 
written  consent  of  the  stockholders  or  members,  or  a  certificate 
of  the  proceedings  of  the  meeting  of  the  stockholders  or  members, 
when  such  election  is  made  at  any  such  meeting,  signed  by  the 
chairman  and  secretary  of  the  meeting,  and  a  majority  of  the 
directors,  rau.st  be  filed  in  the  office  of  the  clerk  of  the  county 
where  the  original  articles  of  incorporation  ai"e  filed,  and  a  cer- 
tified copy  thereof  must  be  filed  in  the  office  of  the  secretary  of 
state:  and  thereafter  the  corporation  shall  continue  its  existence 
under  the  i)rovisions  of  this  code  which  are  applicable  thereto, 
and  shall  possess  all  the  rights  and  powers,  and  be  subject  to  all 
(he  obligations,  restrictions,  and  limitations,  prescribed  thereby. 

Amended  March  .SO,  1874,  amendts.  1873-4,  p.  11)8. 

7,7  Cal.  533;  10.5  Cal.  049,  r.,-.2 ;  109  Cal.  079.  .0S(; ;   HI 
•Cal.  65;  119  Cal.  342;  122  Cal.  330;  XXXVI  Cal.  Dec. 
270. 

Extension  of  corporate  existence:  Constitution  of  California, 
art.  XII,  S  7,  and  Civ.  C.  §  401. 

Existing   corporations   not  affected. 

§  288.  No  corporation  formed  or  existing  before  twelve 
o'clock,  noon,  of  the  day  upon  which  this  code  takes  effect,  is 
affected  by  the  provisions  of  part  four  of  division  first  of  this 
code,  unless  such  corpoi-ation  elects  to  continue  its  existence 
under  it  as  provided  in  section  two  hundred  and  eighty-seven; 
but   the   laws   under   which  such   corjjorations   were   formed  and 


§  288  CIVIL  oonR.  33 

exist  are  ai)i)licable  to  all  such  corporations,  and  are  repealed, 
subject  to  the  provisions  of  this  section. 
Enacted  March  21,  1872. 

52  Cal.  141:  fiO  Cal.  310:  105  Cal.  550:  109  Cal.  579: 

in  Cal.  65;  119  Cal.  341 :  122  Cal.  337. 

Name  of  instrument  creating  corporations. 

§  289.  The  instrument  by  which  a  private  corporation  is 
formed  is  called  "Articles  of  Incorporation." 

Enacted  March  21,  1872. 
128  Cal.  2(50. 

Articles  of  incorporation,  what  to  contain. 

§  290.  Articles  of  incorporation  must  he  prepared,  setting 
forth  : 

1.  The  name  of  the  corporation. 

2.  The  purpose  for  which  it  is  formed. 

o.  The  place  where  its  principal  business  is  to  be  transacted. 

4.  The  term  for  which  it  is  to  exist,  not  exceeding  fifty  years. 

5.  The  number  of  its  directors  or  trustees,  which  shall  not  be 
less  than  three,  and  the  names  and  residences  of  those  who  are 
appointed  for  the  first  year;  provided,  that  the  corporate  powers, 
business,  and  property  of  corporations  formed,  or  to  be  formed, 
for  the  purpose  of  erecting  and  managing  halls  and  buildings  for 
the  meetings  and  accommodations  of  several  lodges  or  societies 
of  any  benevolent  or  charitable  order  or  organization,  and  in  con- 
nection therewith  the  leasing  of  .stores  and  ofKces  in  such  build- 
ing or  buildings  for  other  puri)oses,  may  be  conducted,  exercised, 
and  controlled  by  a  board  of  not  less  than  three  or  more  than 
fifty  directors,  to  be  chosen  from  among  the  stockholders  of  such 
corporation,  or  among  the  membei's  of  such  order  or  organiza- 
tion ;  and  provided,  also,  that  at  any  time  during  the  existence 
of  corporations  for  profit,  other  than  those  of  the  character  last 
hereinabove  provided  for,  the  numbers  of  the  directors  may,  by 
a  majority  of  the  stockholders  of  the  corporation,  be  increased, 
or  diminished  to  any  number  not  less  than  three,  who  must  be 
members  of  the  corporation  ;  whereupon  a  certificate  stating  the 
number  of  directors  must  be  filed,  as  provided  for  in  section  two 
hundred  and  ninety-six  for  the  filing  of  the  original  articles  of 
incorporation ;  and  provided,  also,  that  the  coi-porate  powers, 
business,  and  property  of  corporations  formed  or  to  be  formed 


34  CIVIL  CODE.  §  290 

Cur  social  i)iirposes,  and  iiol  diiffll.N'  t'or  piolil,  may  be  exercised, 
conducted,  and  controlled  liy  a  board,  consistins  of  .such  number 
of  directors  as  may  be  in  the  constitution  or  l)y-la\vs  provideti ; 
and  corporations  so  formed  may,  in  their  constitution  or  by-laws, 
provide  for  the  length  of  time  that  the  directors,  or  any  number 
thereof,  shall  act,  and  may,  in  like  manner  provide  that  certain 
directors,  or  a  certain  number  of  the  board  of  directors,  to  be 
selected  by  the  corporation  or  the  board  of  directors,  in  the  mode 
and  manner  provided  in  the  constitution  or  by-laws,  shall  act 
for  any  specitied  len}:;th  of  time,  or  otherwise,  as  shall  be  in  the 
constitution  or  by-laws  set  forth. 

0.  The  amount  of  its  capital  stock,  and  the  number  of  shares 
iTito  which  it  i.s  divided.  Corporations  formed  for  profit,  pur- 
suant to  the  provisions  of  this  code,  may,  by  their  articles  of 
incorporation,  provide  for  the  classification  of  their  capital  stock 
into  preferred  and  common  stock.  In  the  event  that  the  articles 
of  incorporation  shall  provide  for  such  classification  the  same 
must  contain  a  statement  of  the  number  of  shares  of  stock  to 
which  preference  is  granted,  and  the  number  of  shares  of  stock 
to  which  no  preference  is  granted.  The  articles  of  incorporation 
shall  also  state,  in  clear  and  succinct  manner,  the  nature  and 
extent  of  the  preference  granted,  and  except  as  to  the  matters 
and  things  so  stated,  no  distinction  shall  exist  between  said 
classes  of  stock  or  the  owners  thereof;  provided,  however,  that 
no  preference  shall  be  granted  nor  shall  any  distinction  be  made 
l)etween  the  classes  of  stock  either  as  to  voting  power  or  as  to 
the  statutory  or  constitutional  liability  of  the  holders  thereof  to 
the  creditors  of  the  corporation. 

7.  If  there  is  a  capital  .stock,  the  amount  actually  subscribed, 
and  by  whom. 

Amended  March  18,  1907;  stats.  1907,  p.  347. 

53  Cal.  128  ;  65  Cal.  001  ;  89  Cal.  54  ;  102  Cal.  64 ;  106 
Cal.  309  ;  127  Cal.  267  ;  128  Cal.  200 ;  130  Cal.  39 ;  146 
Cal.  222 ;  148  Cal.  314,  328 ;  2  Cal".  App.  542,  544. 

Note. — §  290.  The  change  consists  in  the  addition  of  all  after 
the  first  sentence  in  subdivision  6,  providing  for  the  classification 
of  the  capital  stock  into  preferred  and  common  stock. 

Requisites,  certain  kinds  of  corporations,  see  §§  291,  593,  594, 
and  (i49,  Civ.  C. 


§  290fl  CIVIL  CODE.  35 

Certain   corporations  to  file  affidavit,   sliowirg  what. 

S  290«.  Before  the  secretary  of  state  issues  auy  certificate  of 
incorporation  or  certificate  of  aiitliority  to  transact  business  in 
tliis  state,  to  any  corporation,  autliorized  in  its  articles  of  incor- 
poration to  act  as  executor,  administrator,  guardian,  assignee, 
receiver,  depositary  or  trustee,  there  must  be  filed  in  his  office 
the  affidavit  of  the  persons  named  in  said  articles  as  the  first 
directors  of  the  corporation,  that  at  least  two  hundred  thousmd 
dollars  of  the  capital  stock,  has  actually  been  subscribed,  and 
paid  in  to  a  person  named  in  such  affidavit,  for  the  benefit  of  the 
corporation  and  before  he  issues  any  certificate  of  incorporation, 
or  certificate  of  authority  to  transact  business  in  this  state,  to 
any  corporation,  authorized  in  its  articles  of  incorporation  to 
engage  in  the  business  of  iianking,  or  of  receiving  the  money  of 
others  on  deposit,  there  must  in  like  manner  be  filed  the  affida\  it 
provided  herein  that  at  least  twenty-five  thousand  dollars  of  the 
capital  stock,  has  actually  been  subscribed,  and  i)aid  in  to  a  person 
named  in  such  affidavit,  for  the  bfuefit  of  the  corpoi-ation. 

Amended  March  13,  IDOt) ;  stats.  1009,  p.  300:  in  effect  in 
sixty  days. 

See  note  to  sec.  290i/^,  pest. 

Corporations  not  to  use  the  word  "trust"  in  corporate  name 
unless  authorized. 

S  290'/2.  -NO  coriioratioii  luTcafrcr  formed  shall  use  the  word 
"trust"  ov  "Irustce"  as  a  ]iari  of  lis  corporate  name  unless  it 
siiall  be  authorized  by  its  articles  of  incor])oration  to  act  as 
executor,  administrator,  guardian,  assignee,  receiver,  depositary 
or  trustee,  nor  shall  any  corporation  hereafter  formed  accept  or 
execute  any  trust  unless  it  shall  have  complied  with  all  the  pro- 
visions of  "An  act  authorizing  certain  corporations  to  act  as 
executor,  and  in  other  capacities,  and  to  provide  for  and  regulate 
the  administration  of  trusts  by  such  corporation."  approved 
April  tith.  ISltl.  and  the  amendment  thereto  approved  Ai)ril  1st, 
1S97. 

Enacted  March  IS.  1905;  stats.  1905,  p.  251. 

NoTE.^-§  290V^.  See  Appendix  for  act  of  April  6,  1891,  author- 
izing certain  corporations  to  act  as  executors,  etc.,  under  heading 
"Executors." 


36  CIVIL  CODE.  §  291 

Certain    corporations   to   state  further  facts   in    articles. 

S  291.  'I'lic  articles  of  iticorporMtiou  of  any  railroad,  wasoii 
road,  01"  tele.araph  organizatiou  iuv;st  also  state  : 

1.  The  kind  of  road  or  telegraph  intended  to  he  constructed; 

2.  The  place  from  and  to  which  it  is  intended  to  be  run,  and 
all  the  intermediate  branches; 

.'5.  The  estimated  length  of  the  road  or  telegraph  line  ; 
4.  That  at  least  ten  per  cent  of  the  capital  stock  subscribed 
has  been  paid  in  to  the  trea.surer  of  the  intended  corporation. 
Enacted  March  21,  1872. 

142  Cal.  227  ;  2  Cal.  App.  553,  555,  557. 
Prerequisites  :    §§  293,  294,  295,  Civ.  C. 

Articles,   how   subscribed   and   acknowledged. 

S  292.  The  articles  of  incorporation  must  be  subscribed  by 
three  or  more  persons,  a  majority  of  whom  must  be  residents  of 
this  state,  and  acknowledged  by  each  before  some  officer  author- 
ized to  take  and  certify  acknowledgments  or  conveyances  of  real 
property. 

Amended  March  20,  1905;  stat.<.  1905,  p.  503. 
97  Cal.  278;  128  Cal.  2(i0  ;  130  Cal.  39. 

Prerequisite  to  filing  articles  for  certain  corporations — Amounts 
to  be  subscribed  to  be  fixed. 
S  293.  I'lich  intended  corporation  named  in  section  two  hun- 
dred and  ninely-one,  before  filing  articles  of  incorporation,  must 
have  actually  subscribed  to  its  capital  stock,  for  each  mile  of 
the  contemplated  work,  the  following  amounts,  to  wit : 

1.  One  thousand  dollars  per  mile  of  railroads  ; 

2.  One  hundred  dollars  per  mile  of  telegraph  lines  ; 

3.  Three  hundred  dollars  per  mile  of  wagon  roads. 
Enacted  March  21,  1872. 

53  Cal.  128  ;  2  Cal.  App.  550. 

Prerequisite   to  filing   articles  of   incorporation   for   railroad,   tele- 
graph,  and   wagon   road   corporations. 
§  294.     Before   the   article.s   of   incorporation   of  any   corpora- 
tion referred  to  in  the  preceding  section  are  filed,  there  must  be 
paid,  for  the  benefit  of  the  cori)oratioii,  to  a  treasurer  elected  by 
the  subscribers,  ten  per  cent  of  I  he  amount  subscribed. 
Enacted  March  21,  1872. 
2  Cal.  App.  550. 


§  20r»  CIVIL   CODE.  37 

Oath   of  officer  to  subscription   of  stock  and   payment  of  ten    per 
cent  In  case  of  such  corporations. 

§  295.  Before  the  secretary  of  state  issues  to  auy  such  cor- 
iioration  a  certificate  of  the  filiut;  of  articles  of  incorporation, 
there  must  be  filed  in  his  oflice  an  affidavit  of  the  president,  sec- 
retary, or  treasurer  named  in  the  articles,  that  the  required 
amount  of  the  capital  stock  thereof  has  been  actually  subscribed, 
and  ten  per  cent  thereof  actually  paid  to  a  treasurer  for  the 
benefit  of  the  corporation. 

Enacted  March  21,  1872. 
2  Cal.  App.  550. 

Signinj;'  fictitious  name  :   Pen.  C.   S  557. 

To   file    articles    with    county   clerk   and    secretary   of    state,    and 
receive  certificate — Term   of  existence. 

§  296.  Upon  filing  the  articles  of  incorporation  in  the  office 
of  the  county  clerk  of  the  county  in  which  the  principal  business 
of  the  company  is  to  be  transacted,  and  a  copy  thereof  certified 
by  the  county  clerk  with  the  secretary  of  state,  and  the  affidavit 
mentioned  in  the  last  section  where  such  affidavit  is  required,  the 
secretary  of  state  must  issue  to  the  coi-poratiou,  over  the  great 
seal  of  the  state,  a  certificate  that  a  copy  of  the  articles  con- 
taining the  required  statement  of  facts  has  been  filed  in  his  office, 
and  thereupon  the  persons  signing  the  articles  and  their  asso- 
ciates and  successors  shall  be  a  l)ody  politic  and  coii)orate  by 
the  name  stated  in  the  certificate',  and  for  the  term  of  fifty  years, 
unless  it  is,  in  the  articles  of  incorporation,  otherwise  stated,  or 
in  this  code  otherwise  specially  provided;  provided,  however,  that 
the  secretary  of  state  shall  not  file  any  copy  of  the  copy  of  any 
articles,  or  issue  any  certificate  of  incorporation  to  any  corpora- 
tion, which  articles  set  forth  the  corporate  name  of  any  con:)ora- 
tion  heretofore  organized  in  this  state,  or  file  any  copy  of  any 
articles,  or  issue  any  certificate  of  incorporation  to  any  corpora- 
tion existing  at  the  time  of  filing  said  articles,  which  articles  set 
forth  a  name  so  closely  resembling  the  name  of  such  corjjoration 
as  will  tend  to  deceive. 

Amended  March  23,  llJOl  ;  stats.  1901,  p.  629. 

72  Cal.  382;  93  Cal.  39;  102  Cal.  02;  111  Cal.  135;  128 
Cal.  262  ;  130  Cal.  38  ;  142  Cal.  281 ;  146  Cal.  222 ;  2  Cal. 
App.  550. 

Filing  copy  of  articles  in  other  counties  :  Civ.  C.  §  299. 


38  CIVIL  CODK.  §  296 

For  fees  foi-  filing,  etc.,  iu  the  office  of  the  secretary  of  state, 
see  section  410  of  the  Political  Code ;  for  fees  of  county  clerks, 
see  Political  Code,  sec.  4300«. 

Certified  copy  of  certificate  to  be  prima  facie  evidence. 

§  297.  A  copy  of  any  article  of  incorporation  filed  in  pur- 
suance of  this  chapter,  and  certified  by  the  secretary  of  state,  or 
by  the  county  clerk  of  the  county  where  the  original  articles  shall 
have  been  filed,  must  be  received  in  all  the  courts  of  this  state, 
and  other  places,  as  prima  facie  evidence  of  the  facts  therein 
stated. 

Amended  March  8,  1895  ;  stats.  1895,  p.  30. 

07  Cal.  488  ;  72  Cal.  382 ;  2  Cal.  App.  555. 

Restoration  of  lost  original  articles  of  incorporation. 

§  297(1.  Wlienever  the  articles  of  incorporation  of  any  cor- 
l)orati<>n  have  been,  or  may  hereafter  be.  destroyed  by  confla- 
gration or  other  public  calamity,  a  copy  of  the  certified  copy  of 
the  articles  of  incorporation  of  such  corporation  filed  in  the  office 
of  the  secretary  of  state  pursuant  to  the  pro\ision.s  of  section 
two  hundred  and  ninety-six  of  this  code,  duly  certified  by  such 
secretary  of  state,  may  be  filed  in  the  office  of  the  county  clerk 
of  the  county  where  such  articles  of  incorporation  were  on  file 
at  the  time  of  their  loss  or  destruction.  Any  such  copy  filed 
l)ursuant  to  this  section  shall  have  the  same  force  and  effect  as 
the  document  so  lost  or  destroyed. 

Enacted  June  lO,  1900 :  stats.  1900.  p.  83. 

See,  also,  "Certificates."  Ajipendix. 

Who  are  members  and   who  stockholders  of  a   corporation. 

§  298.  The  owners  of  shares  in  a  corporation  \\  hich  has  a 
capital  stock  are  called  stockholders.  If  a  corporation  has  no 
capital  stock,  the  corporators  and  their  successors  are  called 
members. 

Enacted  March  21.  1872. 

109  Cal.  588 :  115  Cal.  593. 

Corporation    to    file    articles    in    county    where    it    holds    property. 

§  299.     No  corporation  hereafter  formed  must  purchase,  locate, 

or  hold   property,   in   any   county    in   this   state,   other   than    the 

county  in  which  its  original  articles  of  incorporation  are  filed, 


§  299  OTVTT.   CODE.  39 

without  tiliiis  :i  copy  ol'  I  lie  copy  of  its  urlii-lfs  of  iiicoiporatiou 
filed  in  flio  office  of  the  secretary  of  state,  duly  certified  by  such 
secretary  of  state,  in  the  office  of  the  cotmty  clerk  of  the  county 
in  which  such  property  is  situated  within  sixty  days  after  such 
purchase  or  location  is  made.  Every  corporation  now  in  exist- 
ence, whether  formed  under  the  provisions  of  this  code  or  not, 
must,  within  ninety  days  after  the  passage  of  this  section,  file 
such  certified  copy  of  the  copy  of  its  articles  of  incorporation  in 
the  oflice  of  the  county  clerk  of  every  county  in  this  State  in 
which  it  holds  any  property,  except  the  county  where  the  original 
articles  of  incorporation  are  filed  ;  and  if  any  corporation  hereafter 
acquires  any  property  in  a  county  other  than  that  in  which  it 
now  holds  property,  it  must,  within  ninety  days  thereafter,  file 
with  the  clerk  of  such  county  such  certified  copy  of  the  copy  of 
its  articles  of  incorporation.  The  copies  filed  with  the  several 
county  clerks,  and  certified  copies  thereof,  have  the  same  force 
and  effect  in  evidence  as  the  originals.  Any  corporation  failing 
to  comply  with  the  provisions  of  this  section  can  not  maintain 
or  defend  any  action  or  proceeding  in  relation  to  such  property, 
its  rents,  issues,  or  profits,  until  such  articles  of  incorporation, 
and  such  certified  copy  of  its  articles  of  incorporation,  and  such 
certified  copy  of  the  copy  of  its  articles  of  incorporation,  are  filed 
at  the  places  directed  by  the  general  law  and  this  section  ;  pro- 
vided, that  all  corporations  are  liable  in  damages  for  any  and 
all  loss  that  may  arise  by  the  failure  of  such  corporation  to  per- 
form any  of  the  foregoing  duties  within  the  time  mentioned  in 
(his  section;  and  provided  further,  that  the  said  damages  may 
lie  recovered  in  an  action  bioughi  in  any  court  of  this  state  of 
competent  jurisdiction,  liy  any  iiarty  or  parties  suffering  the 
same. 

Amended  March  21,  3 905  :  stats.  1905,  p.  556. 

67  Cal.  487 ;  73  Cal.  601 :  77  Cal.  72  ;  SO  Cal.  69,  335  ; 

83  Cal.  17;  97  Cal.  274;  108  Cal.  90;  111  Cal.  135;  120 

Cal.  178 ;  146  Cal.  649,  651,  652  ;  147  Cal.  753 ;  148  Cal. 

253;   XXXVI  Cal.    Dec.  :«0 ;   2  Cal.  App.   556;   6  Cal. 

App.  548. 

Note. — §  299.  The  change  consists  in  the  insertion  of  the 
words  "other  than  ilu'  county  in  which  its  original  articles  of 
incorporation  are  filed"  after  "state"  in  line  2. 

Right  to  purchase  estate :  Civ.  C.  §  354. 


40 


oivn,  ooDK.  §  300 


Banking  corporations  may  elect  to  iiave  capital  stock. 

S  300.  Every  corporation  that  lias  beeu  or  may  be  created 
under  the  general  laws  of  this  state,  doins  a  banking  business 
therein,  and  which  has  no  capital  stock,  may  elect  to  have  a 
capital  stock,  and  may  issue  certificates  of  stock  therefor,  in  the 
same  manner  as  corporations  formed  under  the  provisions  oi 
chapter  one,  article  one,  of  the  Civil  Code,  relating  to  the  forma- 
tion of  corporations  ;  provided,  that  no  such  corporation  shall  use 
or  convert  any  moneys  or  funds  theretofore  belonging  to  it,  or 
under  its  control,  into  capital  stock  ;  but  such  funds  or  moneys 
must  be  held  and  managed  only  for  the  purposes  and  in  the 
manner  for  which  they  were  created.  Before  such  change  is 
made,  a  majority  of  the  members  of  such  corporation  present  at 
a  meeting  called  for  the  purpose  of  considering  the  proposition 
whether  it  is  best  to  have  a  capital  stock,  its  amount,  and  the 
number  of  shares  into  which  it  shall  be  divided,  must  vote  in 
favor  of  having  a  capital  stock,  fix  the  amount  thereof,  and  the 
number  of  shares  into  which  it  shall  be  divided.  Notice  of  the 
time  and  place  of  holding  such  meeting,  and  its'object.  must  be 
given  by  the  president  of  such  corporation,  by  publication  in 
some  newspaper  printed  and  published  in  the  county,  or  city  and 
county,  in  which  the  principal  place  of  business  of  the  corpora- 
tion is  situated,  at  least  once  a  week  for  three  successive  weeks 
prior  to  the  holding  of  the  meeting.  A  copy  of  the  proceedings 
of  this  meeting,  giving  the  number  of  persons  present,  the  votes 
taken,  the  notice  calling  the  meeting,  the  proof  of  its  publication, 
the  amount  of  capital  actually  subscribed,  and  by  whom,  all  duly 
cei-tified  by  the  president  and  secretary  of  the  corporation,  must 
be  tiled  in  the  offices  of  the  secretary  of  state  and  clerk  of  the 
county  where  the  articles  of  incorporation  are  filed.  Thereafter 
such  corporation  is  possessed  of  all  the  rights  and  powers,  and  is 
.subject  to  all  the  obligations,  restrictions,  and  limitations,  as  if 
it  had  been  originally  created  with  a  capital  stock  ;  and  provided 
further,  that  no  bank  in  this  state  shall  ever  pay  any  dividend 
upon  so-called  guaranty  notes,  nor  upon  any  stock,  except  upon 
the  amount  actually  paid  in  money  into  said  capital  upon  such 
stock,  and  any  payment  made  in  violation  of  this  provision  shall 
render  all  officers  and  directors  consenting  to  the  same  jointly 
and  severally  liable  to  the  depositors  to  the  extent  thereof. 
Enacted  March  29,  1878 ;  amendts.  1877-8,  p.  77. 

56  Cal.  349 ;  74  Cal.  600. 
See,  also,  "Banks  and  Banking,"  statutes  at  large,  Appendix. 


§  300a  CIVIL  CODE.  41 

Change  of  name;  filing  copy  of  decree. 

§  300m.  Every  corporation  which  ha.s  changed  its  name  under 
the  i)rovisions  of  sections  one  thousand  two  hundred  and  seventy- 
five,  one  thousand  two  hundred  and  seventy-six,  one  thousand 
two  hundred  and  seventy-seven,  one  thousand  two  hundred  and 
seventy-eight,  and  one  thousand  two  hundred  and  seventy-nine  oi! 
tlie  Code  of  Civil  Procedure,  must  file  in  the  office  of  secre- 
tary of  state  and  in  the  office  of  the  county  clerk  of  each  county 
in  which  the  original  articles  or  certified  copies  thereof  are 
required  by  law  to  be  filed,  a  certified  copy  of  the  decree  of  the 
court  changing  such  name. 

Amended  April  10.  lOOO;  stals.  1900.  p.  073;  in  eff.'ct  in  sixty 
days. 

Filing  articles:  Civ.  C.  SS  290,  299, 


Article  II. 
By-Laws.   Directors,   Elections,  and   IVleetings. 

Sec.  301.  By-laws,  when,  how,  and  by  whom  adopted. 

302.  Directors,  election  of,  notice,  etc. 

303.  By-laws  may  provide  for  what. 

304.  By-laws  open  for  public  inspection  ;  how  amended. 
30.5.  Directors,  how  many  and  how  elected  ;  powers. 

306.  Directors  must  be  elected  and  by-laws  adopted  at  first 

meeting.      [Repealed.] 

307.  Elections,  how  conducted. 

308.  Organization  of  board  of  directors,  etc. 

309.  Dividends   to   be   made   from    surplus   profits :    increase 

and  reduction  of  capital  stock. 

310.  Directors,  removal  fiom  office  of.  etc. 

311.  Justice  of  the  peace  may  order  meeting,  when. 

312.  Elections,  how  stock  must  be  represented. 

313.  Representation  of  minors,  insane,  or  deceased  persons. 

314.  Election  may  be  postponed. 

315.  Elections,    complaints    may    be    referred    to    superior 

court ;  relief. 

316.  False    certificate,    report,    or    notice    to    make    officers 

liable. 

317.  Meeting  by  consent  to  be  valid. 

318.  Proceedings  at  such  meeting  to  bo  binding. 

319.  Meetings,  where  held. 

320.  Special  meetings,  how  called. 


42  CIVIL  CODE.  301 

■     321.     Banking  corporations  must  keep  certain  books  open  for 
inspection. 
32 1«.   Change  of  principal  place  of  business,  how  effected. 
321b.   Stockholders'    meetings,    who    may    vote,    and    use    of 
proxies. 

By-laws,  when,  how,  and  by  whom  adopted. 

S  301.  l^ivery  coi-i)oriition  fcji'nicd  under  this  title  must,  within 
one  month  after  filing  articles  of  incorporation,  adojit  a  code  of 
by-laws  for  its  s'overninent  not  inconsistent  with  the  constitution 
mid  laws  of  this  state.  The  assent  of  stockholders  representing 
;i  nia.iority  of  all  the  subscribed  capital  stock,  or  of  a  ma.iority 
of  the  members,  if  there  be  no  capital  stock,  is  necessary  to 
adopt  by-laws,  if  they  are  adopted  at  a  meeting  called  for  that 
I'urpose;  and  in  the  event  of  such  meeting  being  called,  two 
weeks'  notice  of  the  same  by  advertisement  in  some  newspaper 
liubli-shed  in  th^  county  in  which  the  principal  place  of  business 
of  the  corporation  is  located,  or  if  none  is  published  therein,  then 
in  a  paper  published  in  an  adjoining  county,  must  be  given  by 
order  of  the  acting  president.  The  written  assent  of  the  holders 
of  two  thirds  of  the  stock,  or  of  two  thirds  of  the  members  if 
there  be  no  capital  stock,  shall  be  effectual  to  adopt  a  code  of 
by-laws  without  a  meeting  for  that  purpo.se. 

Amended  March  30,  1874  ;  amendts.  1873-4,  p.  200. 

74  Cal.  574:  109  Cal.  588:  IIG  Cal.  414;  117  Cal.  1G2 ; 
145  Cal.  702. 

.\mendment  and  re])eal  of  liy-laws  :   Ci\'.  C.  §  304. 

Directors,  election  of,  notice,  etc. 

S  302.  Tile  directors  of  a  corporation  nuist  be  elected  annu- 
ally I)y  the  stockholders  or  members,  and  if  no  provision  is  made 
in  the  by-laws  for  the  time  of  election,  tlie  election  must  be  held 
on  the  first  Tuesday  in  June.  Notice  of  such  election  must  be 
given  as  prescribed  in  section  three  hundred  one,  unless  all  of 
the  stockholders  waive  such  notice  in  writing. 

Amended  February  22,  1009;  stats.  1909,  p.  48;  in  effect  in 
sixty  days. 

93  Cal.  30:  140  Cal.  222. 

Elections :  Civ.  C.  §  312. 

Postponement  of  election  :   Civ.  C.  S  314.. 


§  303  CIVIL  CODE. 


43 


By-laws  may  provide  for  what. 

S  303.  A  corporation  mny.  Iiy  i(s  liy-lnws,  wIkmv  no  other  pro- 
vision is  spoeially  niiulc.  ])i'Ovi<li'  lor: 

1.  'I'lic  time,  place,  and  manner  of  calling  and  conducling  its 
nie>'tiugs,  and  may  dispense  with  notice  of  all  regnlar  meetings 
of  stockholders  or  directors  ; 

2.  The  nnmber  of  stockholders  or  members  constituting  a 
(luorum ; 

3.  The  mode  of  voting  by  proxy  ; 

4.  The  qualifications  and  duties  of  directors,  and  also  the  time 
of  their  annual  election,  and  the  mode  and  manner  of  giving 
notice  thereof ; 

~).  The  compensation  and  duties  of  officers: 

('..  The  manner  of  election  and  tenure  of  office  of  all  offi<'(>rs 
other  than  the  directors;  and 

7.  Suitable  penalties  for  violations  of  by-laws,  not  exi'ecding, 
in  any  case,  one  hundred  dollars  for  any  one  offense. 

5.  The  newspaper  in  which  all  notices  of  the  meetings  of 
stockholders  or  board  of  directors,  notice  of  which  is  reqinred, 
shall  be  published,  which  must  be  some  newspaper  published  in 
the  county  where  the  principal  i)lace  of  business  of  the  corpora- 
tion is  located,  or  if  none  is  published  therein,  then  in  a  news- 
paper published  in  an  adjoining  county;  provided,  that  when  the 
liy-laws  prescribe  the  newspaper  in  which  said  puldication  shall 
he  made,  if  from  any  cause,  at  the  time  any  publication  is  desired 
lo  be  made,  the  publication  of  such  newspaper  shall  have  ceased, 
I  he  board  of  directors  may,  by  an  order  entered  on  the  records  of 
(he  corporation,  direct  the  publication  to  be  made  in  some  other 
newspaper  published  in  the  county,  or  if  none  is  published 
iliereiu,  then  in  an  adjoining  county. 

Amended  March  19,  1889 ;  stats.  1889,  p.  365. 

93  Cal.  38;  96  Cal.  82;  104  Cal.  653;  109  Cal.  5!l!>:   11' I 
Cal.  208:  130  Cal.  347;  1  Cal.  App.  195,  196. 
Provisions   applicable:  Civ.   i\    $S  305,   308,  323.   344:    other 
|)rovisions,  §  599. 

By-laws  open  for  public  inspection;  how  amended. 

§304.  All  b.v-laws  adopted  must  be  certified  by  a  majority 
of  the  directors  and  secretary  of  the  corporation,  and  copied  in 
a  legible  hand,  in  some  book  kept  in  the  office  of  the  corporation, 
to  be  known  as  the  "book  of  by-laws,"  and  the  book  must  then 


44  CIVIL  CODE.  §  304 

he  open  to  the  inspection  of  the  public  during  office  hours  each 
(lay  oxcei)t  holidays.  The  by-laws  may  be  repealed  or  amended, 
or  new  by-laws  may  be  adopfed,  at  the  annual  meeting,  or  at 
any  other  meeting  of  the  stockholders  or  members,  called  for  that 
purpose  by  the  directors,  bj'  a  vote  representing  two  thirds  of 
the  subscribed  stock,  or  by  two  thirds  of  the  members.  The 
written  assent  of  the  holders  of  two  thirds  of  the  stock,  or  two 
thirds  of  the  members  if  there  is  no  capital  stock,  is  effectual  to 
repeal  or  amend  any  by-law,  or  to  adopt  additional  by-laws. 
The  power  to  repeal  and  amend  the  by-laws,  and  adopt  new 
by-laws,  may,  by  a  similar  vote  at  any  such  meeting,  or  similar 
written  assent,  be  delegated  to  the  board  of  directors.  The 
power,  when  delegated,  may  be  revoked  by  a  similar  vote,  at  any 
regular  meeting  of  the  stockholders  or  members.  Whenever  any 
amendment  or  new  by-law  is  adopted,  it  must  be  copied  in  the 
book  of  by-laws  with  the  original  by-laws,  and  immediately  after 
them.  If  any  by-law  is  repealed,  the  fact  of  repeal,  with  the 
date  of  the  meeting  at  which  the  repeal  was  enacted,  or  written 
assent  was  filed,  must  be  stated  in  said  book.  Until  copied  or 
stated  as  hereinbefore  required,  no  by-law,  nor  any  amendment 
or  repeal  thereof,  can  be  enforced  against  any  person,  other  than 
the  corporation,  not  having  actual  notice  thereof. 
Amended  March  21,  1905  :  stats.  1905,  p.  557. 
89  Oal.  54. 

Note. — §  304.  The  provision  of  the  section  declaring  that  no 
by-law  or  any  amendment  thereof  shall  take  effect  until  copied 
in  the  book  of  by-laws,  is  amended  so  as  to  permit  by-laws  and 
amendments  thereof,  which  have  been  duly  passed,  to  be  treated 
as  valid  and  enforcible  against  the  corporation  and  persons  hav- 
ing notice  tliereof,  regardless  of  whether  or  not  they  have  been 
copied  into  the  proper  book.  It  has  often  happened  that  by-laws 
have  been  published  and  generally  acted  upon  by  the  corporation, 
and  by  others,  and  therefore  their  effect  has  been  sought  to  be 
avoided  on  account  of  the  failure  of  the  proper  officer  to  perform 
his  duty  of  copying  them  as  the  code  directs.  The  change  con- 
sists in  the  addition  of  the  last  sentence. 

Directors,    how   many  and   how  elected;   powers. 

§  305.  The  corpoi-ate  powers,  business,  and  property  of  all 
corporations  formed  under  this  title  must  be  exercised,  con- 
ducted, and  controlled  by  a  board  of  not  less  than  three  directors, 
to  be  elected  from  among  the  holders  of  stock  ;  or  where  there 


§  305  CIVIL  CODE.  45 

is  no  capital  stocli,  then  from  the  members  of  such  corporations ; 
except  that  corporations  formed  or  to  he  formed  for  the  purpose 
of  erecting  and  managing  lialls  and  liuildings  for  the  meetings 
and  accommodation  of  several  lodges  or  societies  of  any  benevo- 
lent or  charitable  order  or  organization,  and  in  connection  there- 
with, the  leasing  of  stores  and  offices  in  such  building  or  buildings 
for  other  purposes,  the  corporate  powers,  business,  and  property 
thereof  may  be  conducted,  exercised,  and  controlled  by  a  board 
not  less  than  three  or  more  than  fifty  directors,  to  be  chosen  from 
among  the  stockholders  of  such  corporation  or  from  among  the 
members  of  such  order  or  organization.  A  majority  of  the 
directors  nmst  be  in  all  ca.ses  residents  of  this  state.  Directors 
of  corporations  for  profit  must  be  holders  of  stock  therein  to  an 
amount  to  be  fixed  by  the  by-laws  of  the  corporation.  Directors 
of  all  other  corporations  must  be  members  thereof.  Unless  a 
i|Uorum  is  present  and  acting  no  business  performed  or  act  done 
is  valid  as  against  the  corporation.  Whenever  a  vacancy  occurs 
in  the  ofBce  of  director,  unless  the  by-laws  of  the  corporation 
otherwi.se  provide,  such  vacancy  must  be  filled  by  an  appoinlee  of 
the  board. 

Amended  March  20,  11)05  ;  stats.  1905,  p.  503. 

78  Cal.  r.32;  81  Cal.  234;  93  Cal.  30;  94  Cal.  549;  111 
Cal.  110;  118  Cal.  138;  121  Cal.  208;  12G  Cal.  417;  127 
Cal.  2G7,  637  ;  130  Cal.  349,  351 ;  132  Cal.  052 ;  140  Cal. 
222  ;  5  Cal.  App.  108 ;  7  Cal.  App.  071. 
Organization  of  board  :  CMv.  C.  §  308. 

Directors  must  be  elected  and  by-laws  adopted  at  first  meeting. 
[Repealed.] 
S  306.     Directors  must  be  elected  and  by-laws  adopted  at  first 
meeting.      [Repealed  March  19,  1889;  stats.  1889,  p.  305.1 

Elections,  how  conducted. 

§  307.  All  elections  must  be  by  ballot,  and  every  stockholder 
shall  have  the  right  to  vote  in  person  or  by  proxy  the  number 
of  shares  standing  in  his  name,  as  provided  in  section  three 
hundred  and  twelve  of  this  code,  for  as  many  persons  as  there 
are  directors  to  be  elected,  or  to  cumulate  said  shares  and  give 
one  .candidate  as  many  votes  as  the  number  of  directors  multi- 
plied by  the  number  of  his  shares  of  stock  shall  equal,  or  to 
distribute  them  on  the  same  principle  among  as  many  candidates 
as  he  shall  think  fit.     The  provisions  of  this  section,  so  far  as 


46  CIVIL  CODE.  §  307 

it  relates  to  cumulative  voting,  shnll  apply  to  all  eorporatious 
and  associations  doins;  Imsinoss  in  (liis  state,  having  a  capital 
slock  or  shares  of  stock,  and  elediiii;  directors  by  a  meeting  of 
stockholders  held  in  this  slate,  whether  such  corporations  or- 
associations  are  organized  under  the  laws  of  this  state  or  not  : 
and  no  election  for  directors  of  any  corporation  or  association, 
doing  business  in  this  state,  and  electing  directors  in  this  state, 
shall  be  valid,  if  the  right  of  a  stockholder  to  cumulate  his  shares 
as  herein  provided  shall  be  denied.  In  corporations  having  no 
capital  stock,  each  member  of  the  corporation  may  cast  as  many 
votes  for  one  director  as  there  are  directors  to  be  elected,  or  maj- 
distribute  the  same  among  any  or  all  the  candidates.  In  any 
case  the  director  receiving  (he  highest  number  of  votes  shall  be 
declared  elected.  The  provisions  of  this  section,  so  far  as  it 
relates  to  cumulative  voting,  shall  not  appl.v  to  literary,  religious, 
scientific,  social  or  benevolent  societies,  having  no  capital  stock 
or  shares,  unless  it  shall  be  so  provided  in  their  by-laws  or  rules. 
Amended  March  20,  1903 ;  stats.  1903,  p.  253. 

93  Cal.  36:  103  Cal.  363;  109  Cal.  589:   115  Cal.  590; 

127  Cal.  683. 
Conduct   of   elections:  Civ.    ('.    §§312,    315;    Constitution    of 
California,  art.  XII,  §  12. 

Organization  of  board  of  directors,  etc. 

§  308.  Immediately  after  their  election,  the  directors  must 
Drganize  by  the  election  of  a  president,  who  must  be  one  of  their 
number,  a  secretary,  and  treasurer.  They  must  perform  the 
duties  enjoined  on  them  by  law  and  the  by-laws  of  the  corpora- 
tion. A  majority  of  the  directors  is  a  sufficient  number  to  form 
a  board  for  the  transaction  of  business,  and  every  decision  of  a 
majority  of  the  directors  forming  such  board  made  when  duly 
assembled,  is  valid  as  a  corporate  act. 
Enacted  March  21,  1872. 

78  Cal.  292.  632  ;  93  Cal.  38  :  94  Cal.  549  ;  96  Cal.  82 : 
103  Cal.  363 ;  121  Cal.  208 :  127  Cal.  267,  637 ;  130  Cal. 
348  :  145  Cal.  364 ;  1  Cal.  App.  670. 
Quorum  necessary  :   §  305  Civ.  C. 

Dividends  to  be   made  from   surplus   profits;    increase   and   reduc- 
tion of  capital  stock. 
§  309.     The  directors  of  corporations  must  not  make  dividends, 
except  from  the  surplus  profits  arising  from  the  business  thereof; 


§  309  CIVIL  CODE.  47 

nor  must  they  create  any  debts  beyond  their  subscribed  capital 
stock ;  nor  must  they  divide,  withdraw,  or  pay  to  the  stock- 
liolders.  or  any  of  them,  any  part  of  the  capital  stock,  except  as 
hereinafter  provided,  nor  reduce  or  increase  the  capital  .«tock, 
except  as  herein  specially  provided.  For  a  violation  of  the  pro- 
\  isions  of  this  section,  the  directors  under  whose  administration 
the  same  may  have  happened  (except  those  who  may  have  caused 
their  dissent  therefrom  to  be  entered  at  large  on  the  minutes  of 
the  directors  at  the  time,  or  were  not  present  when  the  same  did 
happen)  are.  in  their  individual  or  private  capacity,  jointly  and 
severally  liable  to  the  corporation,  and  to  the  creditoi-s  thereof, 
to  the  full  amount  of  the  capital  stock  so  divided,  withdrawn, 
liaid  out,  or  reduced,  or  debt  contracted;  and  no  statute  of 
limitation  is  a  bar  to  any  suit  against  such  directors  for  any 
sums  for  which  they  are  liable  by  this  section  ;  provided,  how- 
ever, that  where  a  corporation  has  been  heretofore  or  may  here- 
after be  formed  for  the  purpose,  among  other  things,  of  acquiring, 
holding,  and  selling  real  estate,  water,  and  water  rights,  the 
directors  of  such  corporation  may,  with  the  consent  of  stock- 
holders representing  two  thirds  of  the  capital  stock  thereof, 
given  at  a  meeting  called  for  that  purpose,  divide  among  the 
stockholders- the  land,  water,  or  water  rights  so  by  such  corpora- 
tion held,  in  the  proportions  to  which  their  holdings  of  such 
slock  at  the  time  of  such  division  entitle  them.  All  conveyances 
made  by  the  corporation  in  pursuance  of  this  section  must  be 
made  and  received  subject  to  the  debts  of  such  corporation  exist- 
ing at  the  date  of  the  conveyance  thereof.  Nothing  herein  pro- 
hibits a  division  and  distribution  of  the  capital  stock  of  any  cor- 
poration which  remains  after  the  payment  of  all  its  debts,  upon 
its  dissolution,  or  the  expiration  of  its  term  of  existence. 
Amended  March  21,  1905:  stats.  1905,  p.  558. 

57  Cal.  002  ;  81  Cal.  384  ;  90  Cal.  135  ;  93  Cal.  309  ;  109 
Cal.  596;  IIG  Cal.  415;  124  Cal.  149;  125  Cal.  412;  127 
Cal.  G74;  135  Cal.  482;  151  Cal.  122;  152  Cal.  4H2 ;  153 
Cal.  G67 ;  XXXVI  Cal.  Dec.  77 ;  7  Cal.  App.  508. 

Note. — §  309.  The  change  consists  in  the  omission  of  the 
words  "nor  must  they  divide,  withdraw,  or  pay  to  the  stock- 
liolders,  or  any  of  them,  any  part  of  the  capital  stock,"  where 
those  words  first  occurred,  and  in  the  omission  of  the  words  "in 
the  event  of  its  dis.solution,"  after  "thereof."  The  reason  for 
the  omission  of  the  words  first  above  alluded  to  is  that  by  some 


48  CIVIL  CODE.  §  309 

clerical  error  they  occurred  twice  in  the  section.  The  words  "in 
the  event  of  its  dissolution"  are  omitted  because  their  presence 
made  it  impossible  to  enforce  the  liability  against  the  directors 
unless  the  corporation  is  first  dissolved,  which  could  not  have 
been  the  intention  of  the  legislature. 

For  increase  or  reduction  of  capital  stock  :  Civ.  C.  §  3.")9. 

Penalties:  Pen.  C.  §§560,  563,  564,  569,  570. 

Dis.solution,  etc.  :   §  1227  et  scq..  Code  Civ.  Proc. 

Directors,  removal  from  office  of,  etc. 

§  310.  The  board  of  directors  may  be  removed  from  office 
by  a  vote  of  two  thirds  of  the  members,  or  of  stocliholders  liold- 
ing  two  thirds  of  tlie  capital  stock,  at  a  soneral  meeting-  held 
after  previous  notice  of  the  time  and  place,  and  of  the  intention 
to  propose  such  removal.  Meetings  of  stockholders  for  this 
purpose  may  be  called  by  the  president,  or  by  a  majority  of 
the  directors,  or  by  members  or  stockholders  holding  at  least  one 
half  of  the  votes.  Such  calls  must  be  in  writing,  and  addressed 
to  the  secretary,  who  must  thereupon  give  notice  of  the  time, 
place,  and  object  of  the  meeting,  and  by  whose  order  it  is  called. 
If  the  secretary  refuses  to  give  the  notice,  or  if  there  is  none,  the 
call  may  be  addressed  directly  to  the  members  or  stockholders, 
and  be  served  as  a  notice,  in  which  case  it  must  specify  the  time 
and  place  of  meeting.  The  notice  must  be  given  in  the  manner 
provided  in  section  three  hundred  and  one  of  this  title,  unless 
other  express  provision  has  been  made  therefor  in  the  by-laws. 
In  case  the  board  of  directors  is  so  removed,  a  new  board  may 
be  elected  at  the  same  meeting. 

Amended  March  23,  1905;  stats.  1905,  i).  558. 

97  Cal.  630;  VII  Cal.  App.  Dec.  254. 

Note. — §  310.  The  amendment,  while  it  authorizes  the  removal 
of  the  whole  board  of  directors  by  a  two-thirds  vote  of  the  mem- 
bers or  stockholders,  denies  the  power  to  remove  less  than  the 
whole  number  by  such  vote.  The  reason  for  this  is  that  by  the 
system  of  cumulative  voting  sanctioned  by  section  307,  a 
minority  may  obtain  representation  in  the  board  of  directors ;  if 
so,  a  director  elected  to  represent  a  minority  of  one  third  ought 
not  to  be  removed  by  the  subsequent  vote  of  the  other  two 
tliirds,  and  the  system  of  cumulative  voting  and  minority  repre- 
sentation lliu.s  made  iiu-ffeclive.  The  first  sentence  only  is 
(.■lian,i;iMl. 


§  311  civn,  CODE.  49 

Justice  of  the  peace  may  order  meeting,  wlien. 

§  311.  Whenever,  from  any  cause,  there  is  no  person  author- 
ized to  call  or  to  preside  at  a  meeting  of  a  corporation,  any 
justice  of  the  peace  of  the  county  where  such  corporation  is 
established  may,  on  written  application-  of  three  or  more  of  the 
stockholders  or  of  the  members  thereof,  issue  a  warrant  to  one 
of  the  stockholders  or  members,  directing  him  to  call  a  meeting 
of  the  corporation,  by  giving  the  notice  required,  and  the  justice 
may,  in  the  same  warrant,  direct  such  person  to  preside  at  such 
meeting  until  a  clerk  is  chosen  and  qualified,  if  there  is  no  other 
officer  present  legally  authorized  to  preside  thereat.  The  applica- 
tion of  a  number  of  stockholders  less  than  three,  but  holding  a 
majority  of  the  capital  stock,  has  the  same  effect  as  an  applica- 
tion by  three  or  more  stockholders  or  members. 

Amended  March  21,  1905  ;  stats.  1905,  p.  559. 

Note. — §  311.  By  the  amendment  the  holders  of  a  majority  of 
tlie  stock,  though  their  number  i.s  less  than  three,  are  authorized 
to  apply  to  the  justice  to  issue  a  warrant  for  an  election.  The 
change  consists  in  the  addition  of  the  last  sentence. 

Elections,  how  stock  must  be  represented. 

§  312.  At  all  elections  or  votes  had  for  any  purpose  in  cor- 
porations formed  for  profit  there  must  be  a  majority  of  the 
subscribed  capital  stock  or  of  the  members  represented,  either 
in  person  or  by  proxy  in  writing;  provided,  that  in  all  instances 
of  corporations  formed  for  purposes  other  than  profit  the  by-laws 
shall  provide  the  number  of  members  or  stockholders  that  shall 
constitute  a  quorum  for  the  transaction  of  business.  Every 
l)erson  acting  therein,  in  person  or  by  proxy  or  representative, 
must  be  a  member  thereof  or  a  stockholder,  having  stock  in  his 
own  name  on  the  stock  books  of  the  corporation  at  least  ten 
days  prior  to  the  election.  Any  vote  or  election  had  other  than 
in  accordance  with  the  provisions  of  this  article  is  voidable  at 
the  instance  of  absent  or  any  stockholders  or  members,  and  may 
1)0  set  aside  by  petition  to  the  superior  court  of  the  county  where 
the  same  is  held.  Any  regular  or  called  meeting  of  the  stock- 
liolders  or  members  may  adjourn  from  day  to  day,  or  from  time 
to  time,  if  for  anj'  ron.son  there  is  not  present  a  majority  of  the 
subscribed  stock  or  members,  or  no  election  had,  such  adjourn- 

3 — CL. 


50  CIVIL   CODE.  §  312 

mcnt  and  the  reasons  therefor  being  recorded  in  tlie  journal  of 

proceedings  of  the  board  of  directors. 

Amended  March  18,  1907 ;  stats.  1907,  p.  500. 

67  Cal.  533 ;  93  Cal.  3G ;  103  Cal.  363 ;  104  Cal.  651 ;  109 
Cal.  588  ;  112  Cal.  63 ;  115  Cal.  589 ;  127  Cal.  683  ;  133 
Cal.  47  ;  146  Cal.  224  :  7  Cal.  App.  671. 

Ed.  Note. — Section  312  was  amended  March  21,  1905,  and 
March  22,  1905,  but  the  former  amendment  was  repealed  (stats. 
1907,  p.  596)   and  the  section  again  amended. 

Note. — §  312.  Tlie  change  in  the  amendment  of  this  section, 
PvS  approved  March  21,  1905,  consisted  in  the  substitution  of  the 
words  "superior  court"  in  place  of  "district  court,"  and  in  the 
omission  of  the  words  "bona  fide"  before  "stockholder."  For  the 
purpose  of  election,  a  person  appearing  upon  the  books  of  the 
corporation  to  be  a  stockholder  should  be  permitted  to  vote,  and 
election  officers  should  not  be  vested  with  authority  to  deny  such 
a  stockholder  the  right  to  vote,  or  to  claim  that  for  some  reason 
he  is  not  a  bona  fide  stockholder.  (See  Smith  vs.  S.  F.  &  N.  P. 
Ry.  Co.,  115  Cal.  584.)  On  March  22,  1905,  another  act  (not 
suggested  by  tlie  commissioner)  was  approved,  superseding  the 
act  approved  upon  the  day  before.  This  act  omitted  .some  of  the 
changes  of  the  act  of  March  21,  but  made  other  changes.  In 
the  session  of  1907,  the  section  as  approved  March  21,  1905,  was 
repealed,  but  the  changes  contained  in  it  were  incorporated  into 
the  amendment  of  the  section,  as  approved  Marcli  22,   1905. 

Notice  of  election  :  Civ.  C.  §  302. 

I'ostponement :  Civ.  C.  §  314. 

Riffhts  of  stockholders  to  Aote  :    Civ.  ('.  S  ."'.07. 

Representation  of  minors,  insane,  or  deceased  persons. 

§  313.  The  shares  of  stock  of  an  estate  of  a  minor,  or  insane 
|)er,sou,  may  be  represented  by  his  guardian,  and  of  a  deceased 
person  bj-  his  executor  or  administrator. 

Amended  March  30.  1S74  :  amendts.  1873-4.  p  203. 
109  Cal.  500;  ]15  Cal.  .500. 

Election    may   be   postponed. 

S  314.  If  fi-om  any  cause  an  election  does  not  take  jjlace  on 
the  (lay  ai)pointed  by  law  oi'  the  by-laws,  or  otherwise,  it  may 
be  held  on  any  day  thereafter  as  is  jn-ovided  for  in  such  by-laws, 
or  (o  which  such  election  may  be  ad.journed  or  ordered  by  the 
directors.      If   an    election    has   not   been    held    at    the   appointed 


§  314  CTVIT.  CODE.  51 

lime,  nnd  no  adjounicd  (U-  otluM-  niccliii,-  for  the  iiuriiosc  liiis  brcii 
ordered  by  tlie  directors,  a  meetius  may  be  called  by  the  stock- 
holders as  provided  in  section  three  hundred  and  ten. 
Amended  March  21,  1905:  stats.  I'.iOr..  p.  559. 

Note. — §  314.  The  design  of  the  amendment  is  to  extend  the 
provisions  of  the  section  to  all  elections  howsoever  authorized, 
and  for  this  purpose  the  words  "by  law"  are  Inserted  after 
"appointed,"  "in"  is  omitted  after  "appointed,"  and  "or  other- 
wise" are  inserted  after  "by-laws." 

Elections,  complaints  may  be  referred  to  superior  court;  relief. 
§  315.  Upon  the  application  of  any  person  or  body  corporate 
aggrieved  by  any  election  held  by  any  corporate  body,  the  superior 
court  of  the  county  in  which  such  election  is  held  must  proceed 
forthwith  to  hear  the  allegations  and  proofs  of  the  parties,  or 
otherwise  inquire  into  the  matters  of  complaint,  and  thereupon 
confirm  the  election,  order  a  new  one,  or  direct  such  other  relief 
in  the  premises  as  accords  with  right  and  justice.  Upon  filing 
the  petition,  and  before  any  further  proceedings  are  had  under 
this  section,  five  days'  notice  of  the  hearing  must  be  given,  under 
the  direction  of  the  court  or  the  judge  thereof,  to  the  adverse 
party,  or  those  to  be  affected  thereby. 

Amended  March  21,  1905  ;  stats.  1905.  p.  5G0. 

93  Cal.  35';  98  Cal.  305  :  103  Cal.  304  ;  115  Cal.  281.  587  ; 

126  Cal.  72. 

Note. — §  315.  The  change  consists  in  the  substitution  of  the 
words  "superior  court  of  tlie  county"  for  "district  court  of  the 
district." 

False  certificate,  report,  or  notice  to  make  officers  liable. 

§316.  Any  ofhcer  of  a  corporation  who  willfully  gives  a  cer- 
tificate, or  willfully  makes  an  official  report,  public  notice,  or 
entry  in  any  of  the  records  or  books  of  the  corporation,  concern- 
ing the  corporation  or  its  business,  which  is  false  in  any  material 
representation,  shall  be  liable  for  all  the  damages  resulting 
therefrom  to  any  person  injured  thereby  ;  and  if  two  or  more 
officers  unite  or  participate  in  the  commission  of  any  of  the  acts 
herein  designated,  they  shall  be  jointly  and  severally  liable. 

Amended  March  30,  1874;  amendts.  1873-4.  p.  203. 

Liability  of  officer:  Pen.  C.   §§558,  5G4 ;  Civ.  C.   §309:  see. 
also,  "Fraudulent  Reports,"  statutes  at  large.  Appendix. 
yill  Cal.  App.  Dec.  522. 


52  CIVIL   CODE.  §  317 

Meeting   by  consent  to  be  valid. 

§  317.  When  all  the  stockholders  or  members  of  a  corporation 
are  present  at  any  meeting  however  called  or  notified,  and  sign 
a  written  consent  thereto  on  the  records  of  such  meetings,  or 
if  those  not  present  sign  in  writing  a  waiver  of  notice  of  such 
meeting,  which  waiver  is  presented  and  made  a  part  of  the 
records  of  such  meeting,  the  doings  of  such  meeting  are  as  valid 
as  if  had  at  a  meeting  legally  called  and  noticed. 

Amended  February  22,  1909;  stats.  1909,  p.  49;  in  effect  in 
sixty  days. 

Proceedings  at  such   meeting  to  be  binding. 

S  318.  The  stockholders  or  members  of  such  corporation,  when 
so  assembled,  may  elect  officers  to  fill  all  vacancies  then  existing, 
and  may  act  upon  such  other  business  as  might  lawfully  be 
transacted  at  regular  meetings  of  the  corporation. 

Enacted  March  21,  1872. 

Meetings,   where   held. 

§  319.  The  meetings  of  the  stockholders  and  board  of  dii-ectors 
of  a  corporation  must  be  held  at  its  office  or  principal  place  of 
business. 

Enacted  March  21.  1872. 

Change  of  place  of  business  :  Civ.  C.  §  321a. 

Special  meetings,  how  called. 

§  320.  When  no  provision  is  made  in  the  by-laws  for  regular 
meetings  of  the  directors  and  the  mode  of  calling  special  meet- 
ings, all  meetings  must  be  called  by  special  notice  in  writing,  to 
be  given  to  each  director  by  the  secretary,  on  the  order  of  the 
president,  or  if  there  be  none,  on  the  order  of  two  directors. 
Enacted  March  21,  1872. 

.59  Cal.  681 ;  76  Cal.  154 ;  96  Cal.  79 ;  109  Cal.  9 ;  130 
Cal.  347 ;  134  Cal.  177 ;  146  Cal.  705. 

Banking  corporations  must  keep  certain  books  open  for  in- 
spection. 
§  321.  Every  corporation  doing  a  banking  business  in  this 
state  must  keep  id  its  office,  in  a  place  accessible  to  the  stock- 
holders, depositors,  and  creditors  thereof,  and  for  their  use,  a 
book  containing  a  list  of  all  stockholders  in  such  corporation, 
and  the  number  of  shares  of  stock  held  by  each  ;  and  every  such 
corporation  must  keep  posted  in  its  office,  in  a  conspicuous  place, 


§  321  CIVIL  CODE.  53 

necessiblc  (o  tho  i)ul)lic  iicMicrnlly,   n   mil  ice,  sii;iuMl   l)y_  Ihc  pivsi- 
(leut  or  secretary,  sljowiii^- : 

First — The  names  of  the  diroc'lors  ol"  siicli  corixn'alioii ; 

Second — The  nuinher  and  value  of  sliarcs  of  slock  held  by  each 
director. 

The  entries  on  such  book  and  snch  notice  shall  be  made  and 
posted  within  twenty-four  hours  after  any  transfer  of  stock, 
and  shall  be  conclusive  evidence  against  each  director  and  stock- 
holder of  the  number  of  shares  of  stock  held  by  each.  The  pro- 
visions of  this  section  shall  apply  to  all  banking  corporations 
foi-med  or  existing  before  twelve  o'clock  noon  of  the  day  on 
which  this  code  took  effect,  as  well  as  to  those  formed  after  such 
time. 

Enacted  January  29,  ISTU;  amendt.s.  ISTS-C),  p.  72. 
89  Cal.  54  ;  140  Cal.  105. 

Records  of  corporations,  general :   §§  377,  37S,  Civ.  C. 

Change  of  principal   place  of  business,   how  effected. 

§  32^(l.  Every  corporation  that  has  been  or  may  be  created 
under  the  general  laws  of  this  state  may  change  its  principal 
place  of  business  from  one  place  to  another  in  the  same  county, 
or  from  one  city  or  county  to  another  city  or  county  within  this 
state.  Before  such  change  is  made,  the  consent,  in  writing,  of 
the  holders  of  two  thirds  of  the  capital  stock  of  the  corporation 
must  be  obtained  and  filed  in  its  ofiice.  When  such  consent  is 
obtained  and  filed,  notice  of  the  intended  removal  or  change 
must  be  published,  at  least  once  a  week,  for  three  successive 
weeks,  in  some  newspaper  published  in  the  county,  wherein  said 
principal  place  of  business  is  situated,  if  there  is  one  published 
therein  ;  if  not,  in  a  newspaper  of  an  adjoining  county,  giving 
the  name  of  the  county  or  city  where  it  is  situated  and  that  to 
which  it  is  intended  to  remove  it.  Whenever  any  such  change  is 
made,  a  copy  of  the  resolution  or  action  of  the  board  of  directors 
authorizing  the  same,  together  with  a  copy  of  an  affidavit  of  the 
publication  above  required,  all  duly  certified  by  the  president 
and  secretary  of  the  corporation  with  the  corporate  seal  affixed, 
shall  be  filed  in  each  office  where  the  original  articles  of  incor- 
poration are,  or  any  copy  thereof  is  required  to  be  filed.  This 
section  shall  not  be  construed  to  require  such  consent,  notice  or 
publication  in  the  case  of  any  such  removal  from  one  location  to 
another  in  the  same  city,  town  or  village. 

Amended  March  20,  1903 ;  stats.  1903,  p.  254. 


54  CIVIL  CODE.  §  3216 

stockholders'   meetings,   who   may   vote,  ^nd   use  of  proxies. 

S  3216.  Al  all  iiu'ctiiius  <>\'  stocklioldcr.s  of  corporations  organ- 
izi'd  uikUt  (lie  laws  of  this  stale,  or  in  the  case  of  corporations 
having-  uo  capital  stock,  then  at  all  meetings  of  the  members  of 
such  corporation,  only  the  stockholders  or  members  actually 
]iresent  shall  be  entitled  to  vote  on  any  proposition,  including- 
the  election  of  directors  and  other  officers  of  the  corporation, 
unless  proxies  from  absent  or  non-attending  stockholders  or 
members  shall  be  held  by  some  person  or  persons  present  at  .such 
meeting  and  shall  be  executed  in  accordance  with  the  provisions 
of  this  section.  Every  such  proxy  must  be  executed  in  writing 
by  the  member  o-  stockholder  himself,  or  by  his  duly  authorized 
attorney.  Xo  proxy  heretofore  given  or  made  shall  i)e  valid 
after  the  expiration  of  eleven  months  from  the  passage  of  this 
act,  unless  the  member  or  stockholder  executing  it  sliall  have 
sjiecified  therein  the  length  of  time  for  which  such  proxy  is  to 
continue  in  force,  -which  must  be  for  some  limited  period,  and 
in  no  case  to  exceed  seven  years  from  the  date  of  the  execution 
of  such  proxy.  Xo  proxy  hereafter  to  be  given  or  made  shall  be 
valid  after  the  expiration  of  eleven  months  from  the  date  of  its 
execution,  unless  the  member  or  stockholder  executing  it  sliall 
have  specified  therein  the  length  of  time  for  which  such  proxy 
is  to  continue  in  force,  which  must  be  for  some  limited  period, 
and  in  no  case  to  exceed  seven  years  from  the  date  of  the  execu- 
tion of  such  proxy.  Every  proxy  shall  lie  revocable  at  the 
pleasure  of  the  person  executing  it :  but  a  corporation  having  no 
capital  stock  may  prescribe  in  its  by-laws  the  ix-rsons  who  may 
act  as  proxies  for  members,  and  the  length  of  time  for  which 
such  proxies  may  be  executed. 

Enacted  February  27,  1005  ;  stats.  inO."),  p.  22. 


§  322  CIVIL  CODE.  55 

CHAPTER  11. 

CORPORATE  STOCK. 

Art.   T.      Stock  ami  .stockholder.s.      H  322-32!!. 
ir.      Assessments  of  stock.      §§  331-349. 

Akticle  I. 

stock  and  Stockholders. 

Sec.  322.     Liabilities    of    stockholders.     They    maj-    be    released, 
when. 

323.  Certificates,  how  and  when  is.sued. 

324.  Shares  are  personal  property  ;   how  transferred  ;  water 

companies. 

325.  Transfer  of  shares  held  by  married  women,  etc.      Divi- 

dends are  individual  property. 

326.  Non-resident      stockholders.     Bonds      required      l^eforo 

transfer. 

327.  Contract  to  relieve  directors  void. 

32  8.     New  or  duplicate  certificates  of  shares  of  stock,  court 

may  order  issue. 
329.     Lost    or    destroyed    bonds,     how    duplicates    may    be 

obtained.      Summons.      Judgment.      Indemnity-. 

LiabiMties  of   stockholders — They   may   be  released,   when. 

S  322.  Each  slockliolder  of  a  corporalion  is  in(li\i(luaily  ami 
licrsonnlly  liable  for  such  i)r()i)ortion  of  all  ils  debts  and  liabil- 
ilii's  contracteil  or  incurred  durin;;-  the  lime  he  was  a  sloc!<- 
iiolder  as  the  aiuount  ol"  stock  or  shares  owned  by  him  bears  lo 
I  he  whole  of  I  lie  suliscribed  cajiilal  slock  or  sliares  of  the  cor- 
lioratioH.  Aii\-  ci-cditor  of  the  corporation  iiia.v  institute  joint 
or  several  actions  aiiiiinst  any  of  its  stockholders,  for  the  pro- 
portion of  his  claim  i)ayable  by  each.  ;ind  in  such  action  I  lie 
court  must  ascertain  the  proportion  of  the  claim  or  debt  for 
which  each  defendant  is* liable,  and  a  several  judgment  must  be 
rendered  against  each,  in  conformity  therewith.  If  any  stock- 
holder pays  his  pi'oportion  of  any  debt  due  from  the  corpoi-ation, 
incurred  while  he  was  such  stockholder,  he  is  r(>lieved  from  any 
further  personal  liability  for  such  debt,  and  if  an  action  has 
been  brotight  against  him  upon  sucji  debt,  it  innsl  lie  dismissed. 
.•IS  lo  liim.  upon  his  i)aying-  the  costs,  or  sucli  pi-ciporl  ion  ihei-eof 
as    may    be    |iropei-l.\-    charuenble    against    him.      Tiie    liai)ilit.\-    of 


56  CIVIL  CODE.  §  322 

each  stockholder  is  determined  by  the  amount  of  stock  or  shares 
owned  by  him  at  the  time  the  debt  or  liability  was  incurred  ;  and 
such  liability  is  not  released  by  any  subsequent  transfer  of  stock. 
The  term  stockholder,  as  used  in  this  section,  applies  not  only  to 
such  persons  as  appear  by  the  books  of  the  corporation  to  be 
such,  but  also  to  every  equitable  owner  of  stock,  although  the 
same  appears  on  the  books  in  the  name  of  another ;  and  also  to 
every  person  who  has  advanced  the  installments  or  purchase 
money  of  stock  in  the  name  of  a  minor,  so  long  as  the  latter 
remains  a  minor  ;  and  also  to  every  guardian,  or  other  trustee, 
who  voluntarily  invests  any  trust  funds  in  the  stock.  Trust 
funds  in  the  hands  of  a  guardian,  or  trustee,  are  not  liable  under 
the  provisions  of  this  section,  by  reason  of  any  such  investment; 
nor  must  the  person  for  v.^hose  benefit  the  investment  is  made 
l)e  responsible  in  respect  to  the  stock  until  he  becomes  compe- 
tent and  able  to  control  the  same ;  but  the  responsibility  of  the 
guardian  or  trustee  making  the  investment  continues  until  that 
period.  Stock  held  as  collateral  security,  or  by  a  trustee,  or  in 
any  other  representative  capacity,  docs  not  make  the  holder  thereof 
a  stockholder  within  the  meaning  of  this  section,  except  in  the 
cases  above  mentioned,  so  as  to  charge  him  with  any  proportion 
of  the  debts  or  liabilities  of  the  corporation  ;  but  the  pledgor, 
or  person  or  estate  I'epresented,  is  to  be  deemed  the  stockholder, 
as  respects  such  liability.  In  a  corporation  having  no  capital 
slock,  each  member  is  individually  and  personally  liable  for  an 
equal  share  of  its  debts  and  liabilities,  and  similar  actions  may 
lie  brought  against  him,  either  alone  or  jointly  with  other  mem- 
bers, to  enforce  such  liability  as  by  this  section  may  be  brought 
against  one  or  more  stockholders,  and  similar  judgments  may 
be  rendered.  The  liability  of  each  stockholder  of  a  corporation 
formed  under  the  laws  of  any  other  state  or  territory  of  the 
United  States,  or  of  any  foreign  country,  and  doing  business 
within  this  state,  is  the  same  as  the  liability  of  a  stockholder  of 
a  corporation  created  under  the  constitution  and  laws  of  this 
state. 

Amended  March  20,  1905  ;  stats.  1905,  p.  390. 

59  Oal.  109,  286;  62  Cal.  461  ;  64  Cal.  121,  288;  65  Cal. 

210 ;  87  Cal.  31 ;  95  Gal.  580,  589  ;  97  Cal.  95  ;  99  Cal.  92  : 

107  Cal.  381,  446 ;  108  Cal.  4  ;  109  Cal.  588 ;  111  Cal.  63 ; 

113  Cal.  25:  115  Cal.  380.  594;  116  Cal.  384;  118  Cal. 

270;  122  Cal.  672;  124  Cal.  150;  125  Cal.  8,  412;  127 


§  322  CIVIL  CODE.  57 

Cal.  82,  G75:  130  Cal.  274;  133  Cal.  507;  130  Cal.  513; 
140  Cal.  104,  105  ;  141  Cal.  227  ;  142  Cal.  384 ;  145  Cal. 
710;  147  Cal.  575;  XXXVII  Cal.  Dec.  30;  2  Cal.  App. 
131,  134,  138,  139,  447  ;  4  Cal.  App.  293,  093 ;  VIII  Cal. 
App.  Dec.  737. 

Note. — §  322.  The  change  consists  in  the  substitution  of  the 
language  of  the  first  sentence  of  section  3  of  article  XII  of  the 
constitution  in  place  of  the  first  sentence  of  the  old  section.  As 
the  section  stood,  it  is  believed  to  be  unconstitutional.  (See 
Larrahee  vs.  Baldwin,  35  Cal.  155.)  The  words  "an  equal 
share"  are  substituted  for  "his  pi-oportion." 

Liability  of  stockholders:  Constitution  of  California,  art.  XII, 
§  3 ;  protection  of  stockholders :  See  "Fraudulent  Reports," 
statutes  at  large.  Appendix. 

Certificates,  how  and  when  issued. 

§  323.  All  corporations  for  profit  must  issue  certificates  for 
stock  when  fully  paid  up,  signed  by  the  president  and  secretary, 
and  may  provide,  in  their  by-laws,  for  issuing  certificates  prior 
'to  full  payment,  under  such  restrictions  and  for  such  purposes 
as  their  by-laws  may  provide,  but  any  certificate  issued  prior  to 
full  payment  must  show  on  its  face  what  amount  has  been  paid 
thereon.  All  certificates  of  stock  issued  by  corporations  author- 
ized by  their  articles  of  incorporation  to  issue  stocks  of  different 
classes,  shall  express  upon  their  face  the  character  of  stock  repre- 
sented by  .said  certificates.  The  said  certificates  shall  also  state 
the  number  of  shares  of  stock  of  each  class  which  said  corpora- 
tion is  authorized  to  issue,  and  the  said  certificates  shall  also 
contain  a  statement  of  the  nature  and  extent  of  the  preference 
granted  to  the  preferred  stock. 

Amended  March  18,  1907 ;  stats.  1907,  p.  348. 

82  Cal.  003;  96  Cal.  329;  101  Cal.  79;  135  Cal.  583; 
XXXVI  Cal.  Dec.  79,  285 ;  2  Cal.  App.  130,  131. 

Note.- — §  323.  The  change  in  1905  consisted  in  the  addition  of 
the  words  "but  any  certificate  issued  prior  to  full  payment  must 
show  on  its  face  what  amount  has  been  paid  thereon,"  the  object 
being  to  require  a  certificate  issued  prior  to  full  payment  to  show 
the  amount  paid  thereon.  The  change  in  1907  consisted  in  the 
addition  of  the  last  two  sentences,  to  cover  cases  of  the  issuance 
of  preferred  and  common  stock. 


5S  CIVIL  conE.  §  P,24 

Shares  are  personal  property;  how  transferred;  water  companies. 
§  324.  WhouevL'i'  the  capital  stuck  of  any  corporatiou  is 
dividwl  iuto  shares,  and  certificates  therefor  are  issued,  such 
shares  of  stock,  except  as  hereinafter  provided,  are  personal 
property,  and  may  be  transferred  by  indorsement  by  signature 
of  the  proprietor,  his  agent,  attorney,  or  legal  representative, 
and  the  delivery  of  the  certificate ;  but  such  transfer  is  not 
valid,  except  as  to  the  parties  thereto,  until  the  same  is  so 
entered  upon  the  books  of  the  corporation  as  to  show  the  names 
of  the  i)artiis  by  whom  and  to  whom  transft'rred.  I  he  number 
(if  \hr  cortiticnte.  tli(>  uuni])er  oi-  designation  of  the  shanks,  and 
the  date  of  the  transfer;  iiroridcd.  luiwcrcy.  tliat  any  corporation 
organized  for,  or  engaged  in  the  business  of  selling,  distributing, 
supplying,  or  delivering  A\ater  for  irrigation  jnirposes  or  for 
domestic  use,  may  in  its  by-laws  provide  that  water  shall  only 
be  so  sold,  distributed,  supplied,  or  delivered  to  owners  of  its 
capital  stock,  and  that  such  stock  shall  be  appurtenant  to  certain 
lands  when  the  same  are  described  in  the  certificate  issued  there- 
for;  and  when  such  certificate  shall  be  so  issued,  and  a  certified 
copy  of  such  by-law  recorded  in  the  office  of  the  county  recorder 
in  the  county  where  such  lands  are  situated,  the  shares  of  stock 
so  located  on  any  land  shall  only  be  transferred  with  said  lands, 
and  shall  pass  as  an  appurtenance  thereto.  Whenever  any  officer 
of  any  corpoi-ation  shall  refuse  to  make  entries  npon  the  books 
thereof,  or  to  transfer  stock  therein,  or  to  issue  a  certificate  or 
certificate's  therefor  to  the  transferee  as  i)rovided  by  this  and  the 
next  i)receding  section,  such  officer  shall  be  sub.iect  to  a  penalty 
oP  four  hundred  dollars,  to  be  recovered  as  liquidnled  damages, 
in  an  action  brought  against  him  by  the  person  aggrieved. 
Amended  March  22,  VMl ;  stats.  1007,  p.  854. 

.^>3  Cal.  431  ;  HS  Cal.  428  ;  63  Cal.  3(}4  :  72  Cal.  9 ;  7!)  Cal. 

331  :  82  Cal..  003;  84  Cal.   137;  108  Cal.  493;  109  Cal. 

0.32;  113  Cal.  270;  120  Cal.  .534;  134  Cal.  410;  136  Cal. 

r.l3;  141  Cal.  16;  147  Cal.  240,  242;  150  Cal.  108,  109. 

110:  2  Cal.  App.  131. 

Transfer  of  shares  held  by  married  women,  etc. — Dividends  are 
Individual  property. 
S  325.  Shares  of  stock  in  corporations  standing  on  the  books 
of  the  coi'poration  in  the  name  of  a  married  woman  may  be 
transferred  by  her,  her  agent  or  attorney,  without  the  signa- 
ture of  her  hnsband,  and  in  the  same  manner  as  if  such  married 


§  325  CIVIL  CODE.  r.J) 

Woman  wriT  a  I'l'iumr  soil'.  All  (li\i(lciiils  iia.vahlc  iiiinn  any  of 
sut'li  shares  of  stock  may  lie  paid  to  her.  her  aseut  or  attorney, 
in  the  same  manner  as  if  she  were  unmarried  ;  and  any  proxy  or 
power  given  by  her,  touching  any  of  such  shares,  is  valid  and 
binding,  and  neither  it  nor  any  receipt  for  dividends  need  be 
signed  by  her  husband. 

Amended  ^Nlarch  20.  100.") ;  stats.  lOOo,  p.  307. 

Note. — §  325.  The  amendment  is  designed  to  make  it  clear 
tliat  shares  of  stock  standing  in  tlie  name  of  a  married  woman 
are  presumed  to  be  her  separate  property,  and  that  they  may 
be  dealt  with  by  her  as  such,  in  the  absence  of  proof  and  notice 
to  the  contrary. 

Non-resident   stockholders — Bonds   required   before  transfer. 

S  326.  Wlien  the  shares  of  stoclc  in  a  corporation  are  owned 
by  parties  residing  out  of  tlie  state,  the  president,  secretary,  or 
directors  of  the  corporation,  before  entering  any  transfer  of 
the  shares  on  its  books,  or  issuing  a  certificate  tlierefor  to  tlie 
transferee,  may  require  from  the  attorney  or  agent  of  the  non- 
resident owner,  or  from  the  person  claiming  under  the  transfer, 
an  affidavit  or  other  evidence  that  the  nonresident  owner  was 
alive  at  the  date  of  the  transfer,  and  if  such  affidavit  or  other 
satisfactory  evidence  be  not  furnished,  may  require  from  the 
attorney,  agent,  or  claimant  a  bond  of  indemnity,  with  two 
sureties,  satisfactory  to  the  officers  of  the  corporation;  or,  if 
not  so  satisfactory,  then  one  approved  by  a  judge  of  the  superior 
court  of  the  county  in  which  the  principal  ofiice  of  the  corpora- 
tion is  situated,  conditioned  to  protect  the  corporation  against 
any  liability  to  the  legal  representatives  of  the  owner  of  the 
shares  in  case  of  his  or  her  death  before  the  transfer ;  and  if 
such  affidavit  or  other  evidence  or  bond  be  not  furnished  when 
required  as-  herein  provided,  neither  the  corporation  nor  any 
officer  thereof  shall  be  liable  for  refusing  to  enter  the  transfer 
on  the  books  of  the  corporation. 

Amended  February  IG,  1883 ;  stats.  1883,  p.  4. 
58  Cal.  428. 

Contract  to  relieve  directors  void. 

§327.  Any  contract  or  contracts,  verbal  or  written,  here- 
after nuide  whei'('i)y  it  is  sought  directly  or  indirectly  to  relieve 
any  director  or  trustee  of  any  corporation   or  joint-stock  asso- 


60  CIVIL  CODE.  §327 

ciatiou  from  auy  liability  imposed  by  sectiou  three  of  article 
twelve  of  the  constitution  of  California,  are  hereby  declared  to 
be  and  shall  be  null  and  void. 

Enacted  April  12,  1880 ;  amendts.  1880,  p.  9. 
84  Cal.  422. 

New  or  duplicate  certificates  of  shares  of  stock,  court  may  order 
issue. 

§  328.  Whenever  a  certificate  of  stock  or  of  shares  in  a  cor- 
poration organized  under  the  laws  of  this  state  has  been  lost, 
destroyed  or  wrongfully  withheld,  the  owner  thereof  may  bring 
an  action  against  such  corporation  in  the  superior  court  of  the 
county  in  which  is  located  its  principal  place  of  business,  for  the 
purpose  of  obtaining  a  new  or  duplicate  certificate.  If  by  the 
books  of  the  corporation  the  stock  stands  in  the  name  of  a  per- 
son other  than  the  plaintifie,  or  if  by  such  books  it  appears  that 
some  other  person  claims  or  has  some  right,  title,  or  interest  in, 
or  lien  upon,  such  stock,  all  such  persons  must  be  made  parties 
defendant  with  the  corporation.  Summons  must  be  issued  and 
served  as  in  other  civil  actions,  and  in  addition  thereto,  the 
court  must  direct  its  clerk  to  issue  and  cause  to  be  published, 
at  least  once  a  week  for  four  successive  weeks,  in  some  news- 
paper published  in  the  county,  a  notice  setting  forth  the  pend- 
ency of  the  action,  the  names  of  the  parties  thereto,  the  court 
in  which  it  is  pending,  the  name  of  the  corporation  issuing  the 
stock,  the  number  of  the  certificate  and  the  number  of  the  shares, 
the  name  of  tha  person  mentioned  as  stockholder  in  the  cer- 
tificate, and  notifying  all  persons  claiming  said  shares,  or  any 
of  them,  or  any  interest  or  lien  therein  or  thereupon,  to-be  and 
appear  before  the  court  at  a  time  and  place  to  be  designated  in 
the  notice,  not  less  than  thirty  days  from  the  first  publication 
thereof,  then  and  there  to  show  cause  why  a  new  certificate 
should  not  be  directed  to  be  issued  to  the  plaintiff,  and  to  set 
forth  their  rights  in  or  claim  to  such  shares.  If  any  one  appears 
and  answers  or  intervenes  in  the  action,  it  must  proceed  to  trial 
as  in  other  civil  cases,  and  the  court  must  enter  judgment  as 
from  the  facts  established  may  be  proper;  but  if  no  one  appears 
within  the  time  designated  in  such  notice,  nor  within  the  time 
allowed  by  law  after  the  services  of  such  summons,  the  court 
must  hear  such  evidence  as  may  be  offered  in  support  of  the 
allegations    of   the   complaint,   and    make    and    file    its   decision 


§  328  CIVIL  CODE. 


Gl 


thereon,  and  thei-eupou  may  ouLer  ils  judgment  canceling  Iho 
lost,  destroyed  or  wrongfully  withheld  certificate  and  directing 
the  corporation,  upon  payment  to  it  of  all  costs  incurred  by 
it  in  the  premises  and  without  costs  against  the  corporation,  to 
issue  to  the  plaintiff  a  new  or  duplicate  certificate.  After  the 
issuing  of  a  new  certificate  by  the  corporation  pursuant  to  any 
judgment  in  such  action,  no  action  can  ever  be  maintained  by 
any  person  against  the  corporation  in  reference  to  said  lost  or 
destroyed  certificate  or  the  shares  represented  thereby,  and  there- 
after any  such  action  is  forever  barred  as  against  the  corpora- 
tion. 

Enacted  March  20,  1905  ;  stats.  1905,  p.  dOO. 

Lost  or  destroyed  bonds,  how  duplicates  may  be  obtained — Sum- 
mons— Judgment — Indemnity. 
§  329.  Whenever  a  bond  or  bonds  of  a  corporation  organized 
under  the  laws  of  this  state  or  o^  any  other  state,  or  any  ter- 
ritory of  the  United  States,  has  or  have  been  lost  or  destroyed 
in  this  state  by  fire,  earthquake,  or  other  calamity,  the  owner 
thereof  may  bring  an  action  against  such  corporation  and  the 
trustee  or  mortgagee  of  such  bonded  indebtednes.s  in  the  superior 
court  of  the  county  in  which  such  bond  or  bonds  were  lost  or 
destroyed,  or  in  which  owner  resides,  or  in  which  is  located  the 
principal  place  of  business  of  such  corporation,  for  the  pui'pose 
of  obtaining  a  new  or  duplicate  bond  or  bonds.  If  said  bond  or 
bonds  stand  in  the  name  of,  or  are  registered  in  the  name  of  a 
person  other  than  the  plaintiff,  or  if  it  appears  by  the  books  of 
the  corporation  that  any  other  person  claims  or  has  some  right, 
title,  interest  in,  or  lien  upon  such  bond  or  bonds,  all  such  per- 
sons must  be  made  parties  defendant  with  the  corporation  and 
the  trustee  and  mortgagee.  Summons  must  be  issued  and  served 
as  in  other  civil  actions  and  iu  addition  thereto  the  court  must 
direct  its  clerk  to  issue  and  cause  to  be  published  at  least  once 
a  week,  for  four  successive  weeks,  in  some  newspaper  published 
in  the  county  a  notice  setting  forth  the  pendency  of  the  action, 
the  names  of  the  parties  thereto,  the  court  in  which  it  is  pend- 
ing, the  name  of  the  corporation  which  had  issued  the  bond  or 
bonds,  the  number  of  said  bond  or  bonds,  if  any,  and  the  amount 
thereof,  and  the  person  in  whose  name  the  same  stands  or  is 
I'egistered,  and  notifying  all  persons  claiming  said  bond  or  bonds, 
or  any  of  them  or  any  interest  or  lien  therein  or  thereupon,  to 
be  and  appear  before  the  court  at  a  time  and  place  to  be  desig- 


G2  civiT,  CODE.  "  §  329 

iinli'd  ill  I  he  iiolii-c,  luil  less  than  lliirly  (l:i.\s  frdiu  (lie  lirsL  piib- 
licatioii  tlu'ix'uf.  then  and  there  to  show  cause  wliy  a  new  bond 
or  bonds  should  not  be  directed  to  be  issued  to  the  plaintiff  and 
to  set  forth  their  rights  in,  or  claims  to  such  bond  or  bonds.  If 
any  one  appears  and  answers  or  intervenes  in  the  action  it  must 
proceed  to  trial  as  in  other  civil  cases  and  the  court  must  enter 
judgment  as  from  the  facts  established  may  be  proper ;  but  if 
no  one  appear.s  within  the  time  designated  in  said  notice,  nor 
within  the  time  allowed  by  law  after  the  service  of  such  sum- 
mons, the  court  must  hear  such  evidence  as  may  be  offered  in 
support  of  the  allegations  of  the  complaint  and  make  and  file  its 
decision  thereon,  and  thereupon  may  enter  its  judgment  cancel- 
ing the  lost  or  destroyed  bond  or  bonds  and  directing  such  cor- 
poration, upon  payment  to  it  of  all  costs  incurred  by  it  in  the 
premises,  and  upon  payment  to  it  of  the  money  required  and 
necessary  to  re-issue  new  bond  or  bonds  and  without  costs 
against  the  corporation  or  other  defendant,  mortgagee  or  trustee, 
to  issue  to  the  plaintiff  a  new  or  duplicate  bond  or  bonds  upon 
the  .said  plaintiff  giving  proper  indemnity  to  the  said  corporation 
and  the  said  mortgagee  or  trustee. 

Enacted  March  G,  1907;  stats.  1007,  p.  IK!. 

iVllTICLE    II. 

Assessments  of  Stock. 

Sk<^  331.     Directors  may  levy  asse.s.sments. 
.332.      limitation.      How  levied. 

333.  Levy    of    as.sessment.      Old    assessment    remaining    un- 

paid. 

334.  What  order  shall  contain. 

335.  Notice  of  assessment.     Form. 

336.  Publication  and  service  of  notice. 

337.  Delinquent  notice.     Form. 

338.  Contents  of  notice. 

339.  How  published. 

340.  Jurisdiction  acquired,  how. 

341.  Sale  to  be  by  public  auction. 

342.  Highest  bidder  to  be  the  purchaser. 

343.  In  default  of  bidders,  corporation  may  purchase. 

344.  Disposition  of  stock  purchased  by  corporation. 

345.  Extension  of  time  of  delinquent  sale. 
34  6.  Assessments  shall  not  be  invalidated. 


§  3M  riviT,  CODE.  (13 

347.  Action  for  recovery  ol"  stock,  and  limitation  tliereof. 

348.  Affidavits    of    pul:.litation.      .\fHdavita    of    sale.      To    be 

filed. 

349.  Waiver  of  sale.      Action  to  reco\'er  assessment. 

Directors  may  levy  assessments. 

S  331.  The  directors  of  any  corporation  formed  or  e.xistinu 
under  tlie  laws  of  this  state,  after  one  fourth  of  its  capital  stock 
has  been  subscribed,  may,  for  the  purpose  of  paying  expenses, 
conducting  busiues.s,  or  paying  debts,  levy  and  collect  assess- 
ments upon  the  subscribed  capital  stock  thereof  in  the  manner 
and  form,  and  to  the  extent  provided  herein. 

Amended  March  .30,  1S74  ;  amendts.  lS7o-4,  p.  20G. 

05  Cal.  194 ;  80  Cal.  .377  ;  82  Cal.  00.3 ;  92  Cal.  50 :  101 
Cal.  80  :  108  Cal.  492  ;  109  Cal.  588  ;  110  Cal.  203  ;  120 
Cal.  580;  327  Cal.  82;  129  Cal.  290;  133  Cal.  00;  135 
Cal.  032;  141  Cal.  227;  145  Cal.  700,  701,  702;  140 
Cal.  700;  2  Cal.  App.  1.3(') ;  4  Cal.  App.  .507;  VII  Cal. 
App.  Dec.  730. 

Limitation — How  levied. 

S  332.  No  one  assessment  must  exceed  ten  per  cent  of  the 
amount  of  the  capital  stock  named  in  the  articles  of  incorpora- 
tion, except  in  the  cases  in  this  section  otherwise  provided  for. 
as  follows  : 

1.  If  the  whole  capital  of  a  corporation  has  not  been  paid 
up.  and  the  corporation  is  unable  to  meet  its  liabilities  or  to 
satisfy  the  claims  of  its  creditors,  the  assessment  may  be  for  the 
full  amount  unpaid  upon  the  capital  stock ;  or  if  a  less  amount 
is  sufficient,  then  it  may  be  for  such  a  percentage  as  will  raise 
that  amotint ; 

2.  The  directors  of  railroad  corporations  may  assess  the 
capital  stock  in  installments  of  not  more  than  ten  per  cent  per 
month,  unless  in  the  articles  of  incorporation  it  is  otherwise  pro- 
vided : 

3.  The  directors  of  fire  or  marine  insurance  corporations  may 
assess  such  a  percentage  of  the  capital  stock  a.s  they  deem  proper. 

Enacted  March  21,  1872. 

05  Cal.  194  ;  93  Cal.  .549 ;  99  Cal.  14 ;  107  Cal.  450 ;  145 
Cal.  701,  702,  707  ;  XXXVI  Cal.  Dec.  78 ;  VII  Cal.  App. 
Dec.  730;  2  Cal.  App.  130,  448. 


64  CIVIL  CODE.  §  333 

Levy  of  assessment — Old  assessment  remaining   unpaid. 

§  333.  No  assessment  must  be  levied  while  any  portion  of  a 
previous  one  remains  unpaid,  unless : 

1.  The  power  of  the  corporation  has  been  exercised  in  accord- 
ance with  the  provisions  of  this  article  for  the  purpose  of  col- 
lecting such  previous  assessment ; 

2.  The  collection  of  the  previous  assessment  has  been  enjoined  ; 
or, 

3.  The  assessment  falls  within  the  provisions  of  either  the 
first,  second,  or  third  subdivision  of  section  three  hiuidred  and 
thirty-two. 

Enacted  March  21,  1872. 

05  Cal.  195;  VII  Cal.  App.  Dec.  730. 

What  order  shall  contain. 

§  334.  Every  order  levying  an  assessment  must  specify  the 
amount  thereof,  when,  to  whom,  and  where  payable ;  fix  a  day, 
subsequent  to  the  full  term  of  publication  of  the  assessment 
notice,  on  which  the  unpaid  assessments  shall  be  delinquent,  not 
less  than  thirty  nor  more  than  sixty  days  from  the  time  ot 
making  the  order  levying  the  assessment ;  and  a  day  for  the  sale 
of  delinquent  stock,  not  less  than  fifteen  nor  more  than  sixty 
days  from  the  day  the  stock  is  declared  delinquent. 

Enacted  March  21,  1872. 
G  Cal.  App.  358. 

Notice  of  assessment — Form. 

§  335.  Upon  the  making  of  the  order,  the  secretary  shall 
cause  to  be  published  a  notice  thereof,  in  the  following  form  : 

(Name  of  corporation  in  full.  Location  of  principal  place  of 
business.)  Notice  is  hereby  given,  that  at  a  meeting  of  the 
directors,  held  on  the  (date),  an  assessment  of  (amount)  per 
share  was  levied  upon  the  capital  stock  of  the  corporation,  pay- 
able (when,  to  whom,  and  where).  Any  stock  upon  which  this 
assessment  shall  remain  unpaid  on  the  (day  fixed)  will  be 
delinquent  and  advertised  for  sale  at  public  auction,  and,  unless 
payment  is  made  before,  will  be  sold  on  the  (day  appointed),  to 
pay  the  delinquent  assessment,  together  with  costs  of  advertis- 
ing and  expenses  of  sale. 

(Signature  of  secretary,  with  location  of  office.) 

Enacted  March  21,  1872. 
101  Cal.  81. 


§  336  CIVIL  CODE.  65 

Publication  and  service  of  notice. 

§  336.  The  notice  must  be  personally  served  upon  each  stock- 
holder, or,  in  lieu  of  personal  service,  must  be  sent  through  the 
mail,  addressed  to  each  .stockholder  at  his  place  of  residence,  if 
known,  and  if  not  known,  at  the  place  where  the  principal  office 
of  the  corporation  is  situated,  and  be  published  once  a  week,  for 
four  successive  weeks,  in  some  newspaper  of  general  circulation 
and  devoted  to  the  publication  of  general  news,  published  at  the 
place  designated  in  the  articles  of  incorporation  as  the  principal 
place  of  business,  and  also  in  some  nev/spaper  published  in  the 
county  in  which  the  works  of  the  coi-poration  are  situated,  if  a 
paper  be  published  therein.  If  the  works  of  the  corporation  arc 
not  within  a  state  or  territory  of  the  United  States,  publication 
in  a  paper  of  the  place  where  they  are  situated  is  not  necessary. 
If  there  be  no  newspaper  published  at  the  place  designated  as 
the  principal  place  of  business  of  the  corporation,  then  the  pub- 
lication must  be  made  in  some  other  newspaper  of  the  county,  if 
there  be  one,  and  if  there  be  none,  then  in  a  newspaper  published 
in  an  adjoining  county. 

Amended  March  30,  1874  ;  amendts.  1S73-4,  p.  206. 
VII  Cal.  App.  Dec.  731. 

Delinquent  notice — Form. 

§  337.  If  any  portion  of  the  sssscssuKMit  mentioned  in  the 
iKitice  remain.s  unpaid  on  the  day  specified  therein  for  declar- 
ing the  stock  delinquent,  the  secretary  must,  unless  otherwise 
ordered  by  the  board  of  directors,  cause  to  be  pul)lished  in  the 
same  papers  in  which  the  notice  hereinbefore  provided  for  shall 
have  been  published,  a  notice  substantially  in  the  following 
form  : 

(Name  in  full.  Location  of  principal  place  of  business.) 
Notice. — There  is  delinquent  upon  the  following  described  stock, 
on  account  of  assessment  levied  on  the  (date),  (and  assess- 
ments levied  previous  thereto,  if  any,)  the  several  amounts  set 
opposite  the  names  of  the  respective  shareholders,  as  follows  : 
(Names,  number  of  certificate,  number  of  shares,  amount.) 
And  in  accordance  with  law  (and  an  order  of  the  board  of 
directors,  made  on  the  [date],  if  any  such  order  shall  have  been 
made),  so  many  shares  of  each  parcel  of  such  stock  as  may  be 
necessary,  will  be  sold,  at  the  (particular  place),  on  the  (date), 


66  crviL  CODE.  §  387 

nt  (the  hour)  of  such  day,  ,to  pay  delinquent  assessments  thereon, 
together  with  costs  of  advertising  and  expenses  of  the  sale. 
(Name  of  secretary,  with  location  of  office.) 
Enacted  March  21.  1S72. 

101  Cal.  7(>:   los  Cal.  4!»n:   100  ("al.  s  :    VII   Cal.  App. 
Dec.  731. 

Contents  of  notice. 

S  338.  The  notice  must  specify  every  certificate  of  stock,  the 
number  of  shares  it  represents,  and  the  amount  due  thereon, 
except  where  certificates  may  not  have  been  issued  to  parties 
entitled  thereto,  in  which  case  the  number  of  shares  and  amount 
due  thereon,  together  with  the  fact  that  the  certificates  for  such 
shares  have  not  been  issued,  must  be  stated. 

Enacted  March  21,  1872. 

101  Cal.  70:  108  Cal.  508. 

How  published. 

S  339.  The  notice,  when  published  in  a  daily  paper,  must  be 
jniblished  for  ten  days,  excluding  Sundays  and  holidays,  previous 
to  the  day  of  sale.  When  pviblished  in  a  weekly  paper,  it  must 
be  published  in  each  issue  for  two  weeks  previous  to  the  day  of 
sale.  The  first  publication  of  all  delinquent  sales  must  be  at 
least  fifteen  days  prior  to  the  day  of  sale. 

Enacted  March  21.  1872. 

101  Cal.  70:  108  f^al.  40:] :  120  Cal.  200:  VII  C-il.  Apji. 
Dee.  731. 

Jurisdiction  acquired,   how. 

S  340.  r.y  the  ])ublic,-ilinn  uf  Ihc  iiolicr.  Ibc  coriMiralinii 
accjuires  .iurisdiction  In  sell  and  cKiucy  a  ixM-fccI  tillc  to  ail  ol' 
the  stock  described  in  the  notice  of  sale  upon  which  any  portion 
of  the  assessment  or  costs  of  advertising  remains  unpaid  at  the 
hour  appointed  for  the  sale,  but  must  sell  no  more  of  such  stock 
than  is  necessary  to  pay  the  assessments  due  and  costs  of  sale. 

Enacted  March  21.  1872. 
6  Cal.  .V|)p.  2S1. 

Sale  to  be  by   public  auction. 

§341.  On  the  (lay.  at  the  pla<M'.  iiiid  al  the  lime  a  p|«iiiilcil 
ill  llie  notice  of  sale,  the  secrclar.N'  must,  unless  iil  lierwise  ordered 
by   the  directors,  sell   or  caus<'   to  be  sold  at  public  auction,   to 


§  341  civir,  conR.  (i7 

th(>  lunliosl  bidder  for  casli.  so  inaiiy  shares  of  each  parcel  of 
till'  d('seril>ed  stock  as  may  be  necessary  to  pay  the  assessment 
and  rliarnes  thereon,  according  to  the  terms  of  sale:  if  payment 
is  made  before  the  time  fixed  for  sale,  the  party  paying  is  only 
required  to  pay  the  actual  cost  of  advertising,  in  addition  to  the 
assessment. 

Enacted  March  21.  1872. 

Highest   bidder  to   be  the   purchaser. 

S  342.  The  person  offering  at  such  .sale  to  pay  the  assess- 
ment and  costs  for  the  smallest  number  of  shares  or  fraction  of 
a  share  is  the  highest  bidder,  and  the  stock  purchased  must  he 
transferred  to  him  on  the  stock  books  of  the  corporation,  on 
payment  of  the  assessment  and  costs. 

Enacted  March  21.  1ST2. 

In  default  of  bidders,   corporation   may   purchase. 

S  343.  If.  at  the  sale  of  stock,  no  bidder  offers  the  amount 
of  the  assessments,  and  eo.sts  and  charges  due,  the  same  ma.v  b(> 
liid  in  and  purchased  by  the  corporation,  through  the  secretary. 
l)resident,  or  any  director  thereof,  at  the  amount  of  the  assess- 
ments, costs,  and  charges  due  :  and  the  amount  of  the  assess- 
ments, costs,  and  charges  must  he  credited  as  paid  in  full  on  the 
hooks  of  the  corporation,  and  entry  of  the  transfer  of  the  stock 
to  the  corporation  must  be  made  on  the  books  thereof.  While 
the  stock  remains  the  property  of  the  corporation,  it  is  not 
asses.sable,  nor  must  any  dividends  be  declared  thereon;  but  all 
assessments  and  dividends  must  be  apportioned  upon  the  stock 
held  by  the  stockholders  of  the  corporation. 

Enacted  March  21,  1872. 
r>7  Cal.  :5!»8. 

Disposition   of  stock   purchased    by   corporation. 

S  344.  All  purchases  of  its  own  stock  made  by  any  corpora- 
lion  vest  tile  legal  title  to  the  same  in  the  corporation:  and  the 
stock  so  purchased  is  held  sub.i'ect  to  the  control  of  the  stock- 
holders, who  may  make  such  disposition  of  the  same  as  they 
deem  fit.  in  accordance  with  the  b.y-laws  of  the  corporation  or 
vote  of  a  majority  of  all  the  remaining  shares.  Whenever  any 
portion  of  the  capital  stock  of  a  corporation  is  held  by  the  cor- 
poration by  purchase,  a  majority  of  the  remaining  shares  is  a 


08  crvih  CODK.  §  344 

majority  of  the  stock  for  all  purposes  of  election  or  voting  on 
any  question  at  a  stockholders'  meeting'. 
Enacted  March  21,  1872. 

57  Cal.  30S;  72  Cal.  83;  100  Cul  588. 

Extension  of  time  of  delinquent  sale. 

§•345.  The  dates  fixed  in  any  notice  of  assessment  or  notice 
of  delinquent  sale,  published  according  to  the  provisions  hereof, 
may  be  extended  from  time  to  time  for  not  more  than  thirty 
days,  by  order  of  the  directors,  entered  on  the  records  of  the 
corporation  ;  but  no  order  extending  the  time  for  the  perform- 
ance of  any  act  specified  in  any  notice  is  effectual  unless  notice 
of  such  extension  or  postponement  is  appended  to  and  published 
with  the  notice  to  which  the  order  relates. 

Enacted  March  21,  1872. 
4  Cal.  App.  508. 

Assessment  shall  not  be  invalidated. 

§  346.  No  assessment  is  invalidated  by  a  failure  to  make 
publication  of  the  notices  hereinbefore  provided  for,  nor  by  the 
non-performance  of  any  act  required  in  order  to  enforce  the 
payment  of  the  same  ;  but  in  case  of  any  substantial  error  or 
omission  in  the  course  of  proceedings  for  collection,  all  previous 
proceedings,  except  the  levying  of  the  assessment,  are  void,  and 
publication  must  be  begun  anew. 

Enacted  March  21,  1872. 

76  Cal.  28 ;  108  Cal.  495 ;  109  Cal.  8 ;  VII  Cal.  App.  Dec. 
731. 

Action  for  recovery  of  stock,  and  limitation  tliereof. 

§  347.  No  action  must  be  sustained  to  recover  stock  sold  for 
delinquent  assessments,  upon  the  ground  of  irregularity  in  the 
assessment,  irregularity  or  defect  of  the  notice  of  sale,  or  defect 
or  irregularity  in  the  sale,  unless  the  party  seeking  to  maintain 
such  action  first  pays  or  tenders  to  the  corporation,  or  the  party 
holding  the  stock  sold,  the  sum  for  which  the  same  was  sold, 
together  with  all  subsequent  assessments  which  may  have  been 
paid  thereon  and  interest  on  such  sums  from  the  time  they  were 
paid  ;  and  no  such  action  must  be  sustained  unless  the  same  is 
commenced  by  the  filing  of  a  complaint  and  the  issuing  of  a 
summons  thereon  within  six  months  after  such  sale  was  made. 

Enacted  March  21,  1872. 

76  Cal.  28 ;  133  Cal.  66 ;  153  Cal.  282. 


§  34S  CIVIL  CODE.  69 

Affidavits  of  publication — Affidavits  of  sale — To  be  filed. 

§  348.  The  publication  of  notice  retiuired  by  this  articlo  may 
be  proved  by  the  affidavit  of  the  printer,  foreman,  or  principal 
clerk  of  the  newspaper  in  which  the  same  was  published  ;  and 
the  affidavit  of  the  secretary  or  auctioneer  is  prima  facie  evidence 
of  the  time  and  place  of  sale,  of  the  quantity  and  particular 
description  of  the  stock  sold,  and  to  whom,  and  for  what  price, 
and  of  the  fact  of  the  purchase  money  being  paid.  The  affidavits 
must  be  filed  in  the  office  of  the  corporation,  and  copies  of  the 
same,  certified  by  the  secretary  thereof,  are  prima  facie  evidence 
of  the  facts  therein  stated.  Certificates  signed  by  the  secretary 
and  under  the  seal  of  the  corporation  are  prima  facie  evidence  of 
the  contents  thereof. 

Amended  March  SO,  1S74  ;  amendts.  1873-4,  p.  207. 

Publication  :  §  339,  Civ.  C. 

Waiver  of  sale — Action  to  recover  assessment. 

§  349.  On  the  day  specified  for  declaring  the  stock  delin- 
quent, or  at  any  time  subsequent  thereto  and  before  the  sale 
of  the  delinquent  stock,  the  board  of  directors  may  elect  to  waive 
further  proceedings  under  this  chapter  for  the  collection  of  delin- 
quent assessments,  or  any  part  or  portion  thereof,  and  may  elect 
to  proceed  by  action  to  recover  the  amount  of  the  assessment 
and  the  costs  and  expenses  already  incurred,  or  any  part  or  por- 
tion thereof. 

Enacted  March  21,  1872. 

101  Cal.  76;  108  Cal.  493;  109  Cal.  3;  110  Cal.  635;  129 
Cal.  296 ;  145  Cal.  700,  701 ;  2  Cal.  App.  136  ;  4  Cal.  App. 
507 ;  VII  Cal.  App.  Dec.  730,  731. 


70  CTVIL  CODE.  §  354 


CITAITIOTt   Til. 

CORPORATE    POWERS. 
Art.    I.     General  powers.      §§  354-365. 
II.     Records.     §§  377-378. 

III.  Examination  of  corporations.      §§   382-384. 

IV.  Juclgrnent  against  and  sale  of  corporate  property. 

§§  388-393. 

ARTTf'LE    I. 

General    Powers. 

Sec.  354.  Powers  of  corporations. 

355.  Limitation  of  powers. 

356.  Issuing  or  circulating  paper  money  prohibited. 

357.  Misnomer  does  not  invalidate  instrument. 

358.  Corporation  to  organize  within  one  year. 

359.  Increasing    and    diminishing    capital    stock    or    bonded 

indebtedness,  how. 

360.  Corporations  may  acquire  real  property,  and  how  much. 

361.  Consolidation    of   mining   companies    owning   adjoining 

claims.      [Repealed.] 
36Ja.   Sale,  lease,  or  transfer  of  business  or  franchise. 

362.  Articles  of  incorporation,  how  amended. 

363.  Corporations     may     own     their     lots     and     buildings. 

[Repealed.] 

363.  Erroneous  filing  of  articles  of  incoi-poration,   how   cor- 

rected. 

364.  Sale  of  concessions  or  property  in  foreign  country. 

365.  Lost  or  destroyed  records. 

Powers   of   corporations. 

S  354.     Every  oorporatioo,  as  such,  has  i)ow(>r  : 

1.  Of  succession,  l)y  its  corporate  name,  for  the  jieriod  limited  : 
and  when  no  period  is  limited,  perpetually  : 

2.  To  sue  and  be  sued,  in  any  court : 

3.  To  make  and  use  a  common  seal,  and  alter  tlie  same  at 
pleasure  ; 

4.  To  purchase,  liold,  and  conve.v  such  real  and  personal 
estate  as  the  purposes  of  the  corporation  may  require,  not 
exceeding  the  amount  limited  in  this  part : 

n.  To  appoint  such  sul)ordinate  officers  or  agents  as  the  busi- 
ness of  the  corporation  may  require,  and  to  allow  them  suitable 
compensation  ; 


354    ■  CIVIL  CODE. 


71 


(J.  To  make  by-laws,  not  inconsistent  with  any  existing  law, 
L'or  the  management  of  its  property,  the  regulation  of  its  affairs, 
and  for  the  transfer  of  its  stock ; 

7.  To  admit  stockholders  or  members,  and  to  sell  their  stock 
or  shares  for  the  payment  of  assessments  or  installments ; 

S.  To  enter  into  any  obligations  or  contracts  essential  to  the 
transaction  of  its  ordinary  affairs,  or  for  the  purposes  of  the 
corporation. 

Enacted  March  21,  1872. 

52  Cal.  59 ;  56  Cal.  63 ;  59  Cal.  24 :  62  Cal.  104  :  63  Cal. 
363;  93  Cal.  309;  108  Cal.  558;  109  Cal.  163:  117  Cal. 
177:  118  Cal.  138;  126  Cal.  416:  144  Cal.  594:  1  Cal. 
App.  195 :  2  Cal.  App.  627. 

Definition  of  corporation:  Civ.  C.  §283;  enumeration  of 
powers:   Civ.  C.  §3.54;  limitation  of  powers:  Civ.  C.  §355. 

Succession  for  limited  period.  §  290  :  homestead  corporations 
ten  years,  §  557,  Civ.  C. 

Actions  against  corporation:  Constitution  of  California,  art. 
Xir,  §  16 ;  Code  Civ.  Proc.  §  395. 

Power  to  make  by-laws:   Civ.  C.  S301. 

Sale  of  delinquent  shares  :   Civ.  C.  §  331  ct  scq. 

Limitation  of  powers. 

S  355.  In  addition  to  the  powers  enumerated  in  the  preced- 
ing section,  and  to  those  expressly  given  in  that  title  of  this  part 
under  which  it  is  incorporated,  no  corporation  shall  possess  or 
I'xercise  any  corporate  jiowers.  except  such  as  are  necessary  to 
llie  exerci.se  of  the  power;;  so  enumerated  and  given. 

Enacted  March  21.  1S72. 
(52  Cal.  104. 

Issuing  or  circulating   paper   money   proliibited. 

8  356.  No  corporation  shall  create  or  issue  bills,  notes,  or 
other  evidences  of  dcbl.  upon  loans  or  otherwise,  for  circulation 
as  money. 

Enacted  March  21.    1S72. 

See  I'm.  C.  §648.  i)unisliing  issuance  or  circulaliou  of  paper 
money.  exc('i)t  as  authorized  by  the  United  States. 

See.  also.  Constitution  of  California,  art.  XIT.  S  •".  ;  but 
negotiable  instruments  may  be  executed:  Civ.  C.  §351.  suli- 
(li\-ision  8. 


72  CIVIL  CODE.  §  357 

Misnomer  does  not  invalidate  instrument. 

§  357.  The  misnomer  of  a  corporation  in  any  written  instru- 
ment does  not  invalidate  the  instrument,  if  it  can  be  reasonably 
ascertained  from  it  what  corporation  is  intended. 

Enacted  March  21,  1872. 

93  Cal.  314 ;  138  Cal.  194 ;  2  Cal.  App.  441. 

Corporation  to  organize  within  one  year. 

§  358.  If  a  corporation  does  not  organize  and  commence  the 
transaction  of  its  business,  or  the  construction  of  its  works 
within  one  year  from  the  date  of  its  incorporation,  or  if,  after 
its  organization  and  commencement  of  its  business,  it  shall  lose 
or  dispose  of  all  its  property,  and  shall  fail  for  a  period  of  two 
years  to  elect  officers  and  transact,  in  regular  order,  the  busi- 
ness of  said  corporation,  its  corporate  powers  shall  cease,  and 
the  said  corporation  may  be  dissolved  at  the  instance  of  any 
creditor  of  the  said  corporation,  at  the  suit  of  the  state,  on  the 
information  of  the  attorney  general ;  but  the  resumption  of  its 
business  in  good  faith  by  such  corporation  prior  to  the  com- 
mencement thereof  shall  bo  a  bar  to  such  suit.  The  due  incor- 
poration of  any  company  claiming  in  good  faith  to  be  a 
corporation  under  this  part,  and  doing  business  as  such,  or  its 
right  to  exercise  corporate  powers,  shall  not  be  inquired  into 
collaterally  in  any  private  suit  to  which  such  de  facto  corpora- 
tion may  be  a  party  ;  but  such  inquiry  may  be  had  at  the  suit  of 
the  state  on  information  of  the  attorney  general ;  provided,  how- 
ever, as  to  any  company  claiming  in  good  faith  to  be,  and  which 
has  been  doing  business  for  ten  consecutive  years  as  a  corpora- 
tion, no  such  inquiry  shall  be  i  iade  either  by  the  state  or  by  any 
person  whatsoever. 

Amended  March  23,  1901 ;  stats.  1901.  p.  632. 

64  Cal.  72 ;  77  Cal.  372 ;  80  Cal.  186 ;  82  Cal.  186  ;  97  Cal. 

277;  102  Cal.  64;  106  Cal.  310;  109  Cal.  601;  126  Cal. 

545  ;  131  Cal.  154  ;  137  Cal.  445  ;  151  Cal.  507,  508. 
Provision    for    railroads :  G'w     C.    §  468 ;    street    railroads : 
Civ.  C.  §  502. 

Increasing  and  diminishing  capital  stock  or  bonded  indebtedness, 

how. 

§  359.     No  corporation  sh.nll  issue  stocks  or  bonds  e.xccpt  for 

money   paid,  labor  done   or   i)roperly  actually    received,   and   all 

fictitious  increase  of  stock  or  indebtedness  is  void.     Every  cor- 


§  359  CIVIL   CODE. 


73 


poration  may  increase  or  diminish  its  capital  stoclj,  and  every 
corporation,  or  two  or  more  corporations,  may  create  or  increase 
its  or  their  bonded  indebtedness,  subject  to  the  following  pro- 
visions : 

Pirst — The  capital  stock  of  a  corporation  may  be  increased 
or  diminished  at  a  meeting  of  the  stockholders  by  a  vote  repre- 
senting at  least  two  thirds  of  the  subscribed  or  issued  capital 
stock,  or  in  the  manner  otherwise  in  this  section  provided ; 
when  by  meeting  as  aforesaid,  then  such  meeting  must  be  called 
by  the  board  of  directors  or  trustees,  and  notice  must  be  given 
by  publication  in  a  newspaper  published  in  the  county  or  city 
and  county  where  the  principal  place  of  business  of  the  cor- 
poration is  located,  or  if  there  be  none  published  in  said  county 
or  city  and  county,  then  in  a  newspaper  published  in  an  adjoin- 
ing county,  or  city  and  county,  such  paper  to  be  designated  by 
the  board  of  directors  or  trustees  in  the  order  calling  for  the 
meeting;  provided,  however,  that  where  the  articles  of  incorpo- 
ration provide  for  two  or  more  kinds  of  capital  stock,  no  increase 
or  reduction  of  capital  stock  shall  be  made  without  the  assent 
of  two  thirds  of  all  the  subscribed  stock,  and  in  making  such 
increase  or  reduction,  the  assent  shall  identify  the  particular 
class  or  classes  of  stock  to  be  increased  or  reduced,  and  the 
amounts  apportioned  to  each. 

Second — The  notice  must  specify  the  object  of  the  meeting 
and  the  amount  to  which  it  is  proposed  to  increase  or  diminish 
the  capital  stock,  the  time  and  place  of  holding  the  meeting, 
which  latter  must  be  at  the  principal  place  of  business  of  the 
corporation  and  at  the  building  where  the  board  of  directors  or 
trustees  usually  meet.  The  notice  herein  provided  must  be  pub- 
lished once  a  week  for  at  least  sixty  days.  The  capital  stock  can 
not  be  diminished  to  an  amount  less  than  the  indebtedness  of  the 
corporation. 

Third — The  bonded  indebtedness  of  a  corporation  may  be 
created  or  increased  by  a  vote  of  the  stockholders  representing 
at  least  two  thirds  of  the  subscribed  or  issued  capital  stock  at 
a  meeting  called  by  the  board  of  directors  or  trustees,  and  after 
notice  of  the  time  and  place  of  the  meeting  published  in  the 
same  manner  and  for  the  time  prescribed,  which  notice  shall 
state  the  amount  of  the  lionded  indebtedness  which  it  is  pro- 
posed to  create,  or  the  amount  to  which  it  is  proposed  to  increase 
such  indebtedness,  and  shall  in  all  other  respects  contain  the 
4 — CL. 


74  •  CIVIL  CODE.  §  359 

same  matters  as  are  above  provided  and  set  forth  iu  the  notice 
of  meeting  to  increase  or  diminish  the  capital  stock ;  or  such 
original  creation  of  bonded  indebtedness  may  be  made  as  other- 
wise in  this  section  provided. 

Fourth — In  addition  to  the  notice  by  publication,  when  pro- 
ceedings are  to  be  had  hereunder  at  a  meeting  of  stockholders, 
the  secretary  of  the  corporation  shall  also  address  a  notice  to 
each  of  the  stockholders  whose  names  appear  on  the  company's 
books  as  sufficiently  addressed  or  identified,  at  his  place  of  resi- 
dence, if  known,  and  if  not  known,  then  at  the  place  in  which 
the  principal  place  of  business  of  the  corporation  is  situate, 
which  notice  shall  be  so  mailed  to  such  stockholders  at  least 
thirty  days  before  the  day  appointed  for  such  meeting. 

Fifth — In  lieu  of  such  call  for  meeting  of  stockholders  and 
of  such  notice  and  publication  of  the  same  and  of  a  stockholders' 
meeting  held  in  pursuance  thereof  and  of  said  vote  thereat  repre- 
senting at  least  two  thirds  of  the  subscribed  capital  stock,  any 
corporation  may  diminish  its  capital  stock  and  also  originally 
create  its  bonded  indebtedness  by  a  resolution  adopted  by  the 
unanimous  vote  of  its  board  of  directors  or  trustees  at  a  regu- 
lar meeting  or  at  a  special  meeting  called  for  that  purpose  and 
approved  by  the  written  assent  or  assents  of  the  stockholders 
holding  two  thirds  of  the  subscribed  or  issued  capital  stock, 
which  assent  or  assents  must  be  filed  with  the  secretary  of  the 
corporation ;  but  the  secretary  of  the  corporation  must  address 
by  mail,  postage  fully  prepaid,  a  copy  of  such  resolution  to  each 
of  the  stockholders  whose  names  appear  upon  the  company's 
books  as  sufficiently  addressed  or  identified,  at  his  place  of  resi- 
dence, if  known,  and  if  not  known,  then  at  the  place  in  which 
the  principal  place  of  business  of  the  corporation  is  situate, 
which  notice  shall  be  so  mailed  to  such  stockholders  at  least 
thirty  days  before  the  certificate  hereinafter  provided  is  made 
and  signed  or  filed,  as  hereinafter  provided,  and  within  that 
time  any  stockholder  may  file  with  such  secretary  his  dissent  in 
writing  ;  but  it  is  further  provided  that  if  at  any  time  within  said 
thirty  days  such  written  assent  or  assents  of  the  stockholders 
holding  all  of  the  subscribed  or  issued  capital  stock  be  so  filed 
with  said  secretary,  then  and  at  once  and  without  further  delay 
the  certificate  hereinafter  provided  for  may  be  so  made,  signed 
and  filed  as  hereinafter  provided  and  with  the  same  eifect,  but 
such  capital  stock  can  not  be  diminished  to  an  amount  less  than 


§  359  CIVIL  CODE.  TH 

the  indebtedness  of  the  corporation,  and  no  increase  of  capital 
stock  or  bonded  indebtedness  can  be  made,  except  at  a  meeting 
of  stockholders  as  in  this  section  provided. 

Sixth — Any  two  or  more  coi'porations  may  by  a  separate 
compliance  by  each  corporation  with  the  provisions  of  this  sec- 
tion applicable  in  the  premises  in  respect  to  creating  or  increas- 
ing bonded  indebtedness,  create  or  increase  a  consolidated  bonded 
indebtedness  of  such  corporations,  to  be  binding  jointly  and 
severally  on  such  corporations,  and  which  may  be  secured  by  a 
consolidated  mortgage  or  deed  of  trust  executed  by  all  such  cor- 
porations, mortgaging  or  conveying  in  trust  all  or  any  of  the 
properties  of  all  such  corporations,  acquired  or  to  be  acquired. 

Seventh — Upon  such  increase  or  diminution  of  the  capital 
stock  or  creation  or  increase  of  the  bonded  indebtedness  being 
made  in  accordance  with  the  provisions  of  this  section  there 
shall  be  made,  if  proceedings  ai-e  had  under  subdivisions  first, 
second,  third  and  fourth  above,  a  certificate  under  the  cor- 
porate seal  and  signed  by  the  president  and  secretary  of  the 
corporation  or  of  each  corporation  acting  in  the  premises  and 
a  majority  of  the  directors  or  trustees  of  such  coi'poration,  or 
each  corporation  so  acting,  showing  a  compliance  by  such  cor- 
poration, or  each  corporation  so  acting,  with  the  requirements 
of  said  last  named  subdivisions  and  the  amount  to  which  the 
capital  stock  has  been  increased  or  diminished  or  the  amount 
of  the  bonded  indebtedness  created,  or  to  which  the  bonded 
indebtedness  may  have  been  increased,  and  the  amount  of  stock 
represented  at  the  meeting  and  the  total  vote  in  the  afiirmativo 
by  which  the  same  was  accomplished  and  the  total  vote  in  the 
negative ;  or  if  such  proceedings  be  had  and  taken  under  sub- 
division fifth  of  this  section  as  to  diminution  of  capital  stock  or 
original  creation  of  bonded  indebtedness  a  like  certificate  shall 
be  made  and  sealed  and  signed,  as  aforesaid,  showing  a  com- 
pliance by  such  corporation,  and  by  each  corporation  acting  in 
the  premises,  with  the  requirements  of  said  subdivision  fifth,  and 
the  amount  to  which  the  capital  stock  has  been  diminished  or 
the  amount  of  bonded  indebtedness  so  originally  created,  and  the 
total  amount  of  the  stock  represented  by  the  said  written  assent 
or  assents  so  filed  with  the  secretary  and  the  total  amount  of 
stock  represented  by  the  said  written  dissent  or  dissents  so  filed. 
In  case  of  a  consolidated  bond  of  indebtedness  each  corporation 
which  is  a  party  thereto  shall  cause  to  be  made  and  signed  and 


7G  CIVIL   CODE.  §  oaO 

sealed  and  vei-ified  and  filed,  as  in  tliis  section  provided,  a  sepa- 
rate certificate. 

Eighth — In  all  cases  the  certificates  shall  state  the  total  num- 
ber of  subscribed  or  issued  shares  of  the  capital  stock  of  the 
corporation,  or  of  each  corporation  respectively  acting  in  the 
premises,  and  shall  be  verified  by  the  oath  of  the  said  president 
and  secretary,  or  of  the  said  respective  presidents  and  secre- 
taries. Such  consolidated  bonded  indebtedness  may  be  created 
or  increased  to  an  amount  equal  to  the  par  or  face  value  of  the 
aggregate  amount  of  the  su]:)scribed  or  issued  capital  stocks  of 
said  two  or  more  corporations,  but  shall  not  exc-eed  such 
aggregate  amount.  In  each  and  every  case  the  certificate  must 
be  filed  in  the  office  of  the  clerk  in  the  county  or  city  and  county 
where  the  original  articles  of  incorporation  of  tlie  corporation 
or  corporations  acting  hereunder  are  filed  and  a  certified  copy 
thereof,  certified  by  such  clerk,  shall  be  filed  in  the  office  of  the 
secretary  of  state;  and  thereupon  the  capital  stock  shall  be  so 
increased  or  diminished,  or  the  bonded  indebtedness  or  consoli- 
dated bonded  indebtedness  .shall  be  created  or  increased  accord- 
ingly, and  such  certificate  or  certificates  so  filed  shall  be,  when 
said  certified  copy  or  copies  are  so  filed,  conclusive  proof  of  such 
increase  or  diminution  of  capital  stock  or  such  creation  or  increase 
of  bonded  or  consolidated  bonded  indebtedness  and  the  validity 
of  each  thereof.  When  the  by-laws  of  a  corporation  prescribe 
the  paper  in  which  notices  of  meetings  of  directors  or  trustees  or 
stockholders  are  to  be  published  the  notices  of  publication  herein 
provided  for  shall  be  published  in  such  paper,  unless  publication 
thereof  shall  have  ceased. 

Amended  March  18,  1907  ;  stats.  1907,  p.  349. 
See,  also,  §  309,  ante. 

5G  Cal.  651;   65  Cal.  617;  96  Cal.   161;   103  Cal.  630; 

109  Cal.  594 ;  112  Cal.  213 ;  116  Cal.  424 ;  125  Cal.  454 ; 

135  Cal.  583 ;  147  Cal.  582 ;  152  Cal.  457 ;  XXXVI  Cal. 

Dec.  359 ;  2  Cal.  App.  130. 
Note. — §  359.     The    change    consists    in    the    addition    of    the 
"provided,  however,"  clause  in  subdivision  first,  to  cover  cases  of 
corporations  issuing  preferred  and  common  stock. 

Corporations  may  acquire  real   property,   and  how  much. 

S  360.  No  corporation  shall  acquire  or  hold  any  more  real 
property  than  may  be  reasonably  necessary  for  the  transaction 
of  its  business,  or  the  construction  of  its  works,  except  as  other- 


§  360  CIVIL  CODE.  77 

wise  spcciiilly  providod.  A  corporation  may  acquire  real  prop- 
erly, as  provided  in  litle  seven,  part  Ihroe,  of  the  Code  of  Civil 
Procedure,  when  needed  for  any  of  the  uses  and  purposes  men- 
(ioned  in  said  title.  By  a  unanimous  vote  of  all  the  directors 
at  any  regular  meeting,  any  corporation  existing-,  or  hereafter 
to  be  formed  under  the  laws  of  this  state,  may  acquire  and  hold 
the  land  and  building  on  and  in  which  its  business  is  carried  on, 
and  may  improve  the  same  to  any  extent  required  for  the  con- 
venient transaction  of  its  busines.s. 

Amended  March  22,  100");  stat.s.  ]!)0.-.,  p.  774. 

144  Cal.  594. 

Note. — §300.  Section  363,  approved  Marcli  ',,  1889,  i.s  udili-il 
to  section  360,  to  the  end  that  there  shall  not  l>o  two  seel  ions 
numbered  3G3.      [See  note  to  section  363.] 

Acquiring  of  land  by  insurance  corporations:  Civ.  <-.  §4ir>; 
by  railroad  corporations:  Civ.  C.  §465. 

Consolidation    of    mining    companies    owning    adjoining    claitns. 
[Repealed.] 
§  361.     Consolidation   of   mining   companies   owning    adjoining 
clainis.      [Repealed  March  22,  1905;  stats.  1905,  p.  775.] 
147  Cal.  GOG. 

Note. — §  361.  Repealed,  and  the  matter  therein  added  to  sec- 
tion  5S7rt. 

Sale,   lease,  or  transfer  of  business  or  franchise. 

§  361«.  No  sale,  lease,  a.s.signment,  transfer  or  conveyance  of 
the  business,  franchise  and  property,  as  a  whole,  of  any  cor- 
poration now  existing,  or  hereafter  to  be  formed  in  this  state, 
shall  be  valid  without  the  consent  of  stockholders  thereof,  hold- 
ing of  record  at  least  two  thirds  of  the  issued  capital  stock  of 
such  corporation  ;  such  consent  to  be  either  expressed  in  writing, 
executed  and  acknowledged  by  such  stockholders,  and  attached 
to  such  sale,  lease,  assignment,  transfer  or  conveyance,  or  by 
vote  at  a  stockholders'  meeting  of  such  corporation  called  for 
that  purpose  ;  but  with  such  assent,  so  expressed,  such  sale,  lease, 
assignment,  transfer  or  conveyance  shall  be  valid  ;  provided,  how- 
ci(i\  that  nothing  herein  contained  shall  be  construed  to  limit 
the  power  of  the  directors  of  such  corporation   to  make  sales, 


78  CIVIL  conE.  §  361o 

leases,  assignments,  transfers  or  conveynnces  oC  coj'porate  in-op- 
erty  other  than  those  hereinabove  set  forth. 

Enacted  March  24,  3003  ;  stats.  1903,  p.  3t»(). 
152  Cal.  584,  586,  587. 

See,  also,  "Franchises,"  Appendix. 

Articles  of  incorporation,  how  amended. 

§  362.  Any  corporation  may  amend  its  articles  of  incorpora- 
tion by  a  majority  vote  of  its  board  of  directors  or  trustees, 
and  by  a  vote  or  written  assent  of  the  stockholders  representing 
at  least  two  thirds  of  the  subscribed  capital  stock  of  such  cor- 
poration, or  the  written  assent  of  the  ma.iority  of  the  members 
if  there  is  no  capital  stock;  and  a,  copy  of  the  said  articles  of 
incorporation,  as  thus  amended,  duly  certified  to  be  correct  by 
the  president  and  secretary  of  the  board  of  directors  or  trustees 
of  such  corporation,  shall  be  filed  in  the  office  where  the  original 
articles  of  incorporation  are  filed,  and  a  certified  copy  thereof, 
duly  certified  by  such  county  clerk,  in  the  otfice  of  the  secretary 
of  state.  A  copy  of  such  articles  of  incorporation,  so  amended, 
duly  certified  by  the  secretary  of  state,  must  be  filed  in  the  office 
of  the  county  clerk  of  every  county  in  which  such  corporation 
has  or  holds  property,  except  only  the  county  in  which  the 
original  amended  articles  of  incorporation  have  been  filed.  Any 
corporation  which  shall  amend  its  articles  of  incorporation  and 
shall  fail  to  file  copies  of  its  amended  articles,  as  required  by 
the  preceding  sentence,  shall  be  subject  to  the  penalties  and 
liabilities  provided  in  section  two  hundred  and  ninety-nine  for 
a  failure  of  corporations  to  file  copies  of  their  articles  of  incor- 
l)oration  in  the  offices  of  the  county  clerks  of  the  counties  in 
which  they  shall  purchase,  hold,  or  locate  property,  and  from 
the  time  of  so  filing  such  copy  of  the  amended  articles  of  incor- 
poration, such  corporation  shall  have  the  same  powers,  and  the 
stockholders  thereof  shall  thereafter  be  subject  to  the  same 
liabilities,  as  if  such  amendment  had  been  embraced  in  the 
original  articles  of  incorporation.  Such  original  and  amended 
articles  of  incorporation  shall  together  contain  all  the  matters 
and  things  required  by  the  laws  under  which  the  original  articles 
of  incorporation  were  executed  and  filed.  Nothing  contained  in 
this  section  must  be  construed  to  cure  or  amend  any  defect 
existing  in  the  original  articles  of  incoi'poration  heretofore  filed, 
in  that  such  articles  did  not  set  forth  the  matters  required  to 


§  362  CIVIL  CODE.  79 

make  the  same  valid  at  the  time  of  filing.  If  the  assent  of  two 
thirds  of  said  stockholders,  or  of  the  majority  of  members  where 
there  is  no  capital  stock,  to  such  amendment  has  not  been 
obtained,  a  notice  of  the  intention  to  make  such  amendment  must 
first  be  advertised  for  thirty  days  in  some  newspaper  published 
in  the  town,  city,  county,  or  city  and  county  in  which  the  prin- 
cipal place  of  business  of  the  corporation  is  located,  before  the 
filing  of  the  proposed  amendment.  Nothing  in  this  section  shall 
be  construed  to  authorize  any  corporation  to  increase  or  diminish 
its  capital  stock,  change  its  name,  extend  its  corporate  existence, 
or  increase  or  diminish  the  number  of  its  directors,  without  com- 
plying with  the  special  provisions  of  this  code  applicable  thereto. 
Amended  March  22,  1905  ;  stats.  1905,  p.  775. 
99  Cal.  39G:  124  Cal.  115;  2  Cal.  App.  552. 

Corporations   may  own   their   lots  and   buildings.      [Repealed.  | 

§  363.  Corporations  may  own  their  lots  and  buildings.  [Ke- 
pealed  JNIai'ch  22,  1005;  sTats.  1905,  p.  770.] 

Note. — §  363.  There  were  formerly  two  sections  of  this  num- 
ber. Section  363,  as  adopted  March  5.  1889,  is  repealed  and  its 
provisions  amalgamated  with  section  360.  This  leaves  in  force 
tlie  other  section  36.".,  which  was  adopted  March  19,  1880. 

Erroneous  filing  of  articles  of  incorporation,  how  corrected. 

§  363.  When  articles  of  incorporation  have  been  prepared, 
subscribed,  and  executed  in  accordance  with  the  provisions  of 
sections  two  hundred  and  ninety  and  two  hundred  and  ninety- 
two  of  the  Civil  Code,  and  such  original  articles  filed  by  error 
or  inadvertence  with  the  clerk  of  a  county  other  than  that 
named  in  the  articles  of  iiicorporalion  as  the  county  in  which 
the  princijial  place  of  business  is  to  be  transacted,  and  the  sec- 
r(>tnry  of  state  sliall  lia\e  issued  n  ((-rtificate  of  incorporation 
liased  on  a  certified  copy  of  such  oilgiiuil  articles  of  incorpora- 
tion, any  stockholder  or  director  of  such  corporation  may  petition 
the  superior  court  of  the  county  in  which  said  original  articles 
of  incorporation  were  filed  for  an  order  to  withdraw  such  origi- 
nal articles  of  incorporation,  and  file  in  place  thereof  a  certified 
copy  of  the  copy  thereof  on  file  in  the  office  of  (he  secretary  of 
state.  Such  petition  must  be  verified,  and  must  state  clearly  the 
facts,  showing  that  such  articles  of  incori>oration  ^^'ere  filed  i)y 
inadvertence  and  mistake;  and  notice  of  the  hearing  of  said 
petition  must  be  given  for  at  least  ten  days  before  the  day  of 


so  CIVIL   CODE.  §  3Go 

Iieariug,  by  publication  in  a  newspaper  published  in  the  county 
where  such  petition  is  tiled.  Upon  the  day  set  for  hearing  the 
l>otition,  the  superior  court  may  grant  an  order  allowing  such 
original  articles  of  incorporation  to  be  withdrawn,  and  a  certified 
copy  of  the  copy  in  the  office  of  the  secretary  of  state  in  the  place 
thereof  filed;  and  the  original  articles  of  Incorporation  must  bo 
filed  within  ten  days  thereafter  in  the  county  in  which  the  prin- 
cipal place  of  business  is  to  be  transacted,  as  stated  in  such 
articles  of  incoi'poration,  and  a  certified  copy  of  the  order  allow- 
ing such  action  must  be  filed  with  the  certified  copy  in  the  office 
of  the  secretary  of  state,  after  which  said  corporation  shall  be 
futitled  to  all  rights  and  privileges  of  a  private  corporation,  and 
the  title  to  any  property  it  may  have  previously  acquired  shall 
not  be  affected  by  reason  of  the  failure  to  file  the  original  articles 
of  incorporation  iu  the  first  instance. 

Enacted  March  19,  1880;  slats.   1880,  p.  332. 

Sale  of  concessions  or  property  in  foreign   country. 

§  364.  Any  corporation  of  this  state  owning  grants,  conces- 
sions, franchises,  and  properties,  or  any  thereof,  in  any  foreign 
country,  may  sell  and  convey  the  same  to  the  government  of 
such  foreign  country,  or  to  any  person  or  persons,  or  any  cor- 
iHuation  or  corporations,  or  association  or  associations,  created 
by  or  existing  under  the  laws  of  this  or  any  other  state  or  the 
Kuitod  States,  or  any  foreign  government;  provided,  however, 
that  the  ])owers  hereby  granted  shall  only  be  exercised  by  a 
majiirily  of  the  entire  board  of  directors  of  such  corporation 
of  this  stal(\  viith  the  concurrence  in  writing  of  the  liolders  of 
two  thirds  in  amount  of  the  capital  stock  thereof. 

I'vnaeled  March  13,  1S'.)9 ;  stats.  18I»0.  p.  1);". 

Lost  or  destroyed   records. 

S  365.  Whenever  it  shall  ai)pear  that  the  miiiut<'s,  records, 
s<"al,  assessment  l)0()k,  stock  journal,  stock  ledger,  certificate 
liook,  certificate  of  stock  or  bonds  or  other  papers  or  records  of 
any  corporation,  nuinicipal,  quasi  or  otherwise,  in  this  state, 
shall  have  been  or  shall  hereafter  be  lost  or  destroyed  by  confla- 
gration or  other  public  calamity,  such  corporation,  by  a  vote  of 
its  board  of  directors,  or  any  stockholder  or  bondholder  of  such 
corporation,  may  petition  Ihc  superior  court  of  the  count.\-,  or 
city  and  county,  in  which  the  principal  place  of  business  of  such 
corporation  is  located,  to  restore  such  lost,  destroyed,  or  injured 


§  Sfif)  CIVIL   CODK.  81 

minutes,  records,  seal,  assessment  book,  stock  journal,  stock 
ledg'er,  certificate  book,  certificate  of  stock  or  bonds  or  other 
papers  or  records.  Such  petition  shall  state  the  loss,  destruction 
or  injury  to  any  such  records  or  documents  or  certificates  of 
stock  or  bonds,  or  other  papers  or  records,  or  any  part  or  por- 
tion thereof,  giving  the  cause  of  such  loss,  injury  or  destruction. 
On  the  filing-  of  such  petition,  duly  verified,  said  superior  court 
shall  make  an  order,  fixing  a  time  and  place  for  the  hearing  of 
the  same,  and  directing  the  clerk  of  the  court  to  give  notice  of 
such  a  hearing  by  publication  of  a  notice  stating  the  time  and 
place  of  the  hearing  of  said  petition  and  the  purpose  thereof, 
which  time  shall  not  be  less  than  twenty-five  nor  more  than 
thirty  days  from  the  completion  of  such  publication.  Notice  of 
such  hearing  shall  be  given  by  publication  in  some  newspaper  of 
general  circulation,  printed  and  published  in  such  county,  or  city 
and  county,  where  the  principal  place  of  business  of  said  cor- 
poration is  located,  and  if  there  be  no  such  newspaper  published 
in  said  county,  or  city  and  county,  then  in  some  adjoining 
county,  to  be  designated  by  the  court  or  judge  thereof,  which 
publication  shall  be  daily  (except  Sundays)  for  a  period  of  at 
least  three  successive  weeks.  In  case  there  is  no  daily  news- 
paper published  in  either  of  said  counties  then  such  notice  shall 
be  published  once  a  week  for  three  successive  weeks  in  a  weekly 
ne\vs])aper  ]niblished  in  such  county.  A  copy  of  said  notice 
shall  also  be  personally  served  upon  all  persons  affected  tliereby 
residing  in  the  State  of  California,  whose  place  of  residence  or 
place  of  business  is  known  to  the  corporation  or  any  of  it.s 
officers,  if  such  person  can  be  found  within  the  state,  which 
service  may  be  made  at  any  time  during  said  period  of  publica- 
tion. If  the  place  of  business  or  place  of  residence  of  any  per- 
sons affected  by  said  petition  or  proceeding  is  unknown  to  the 
corporation  or  any  of  its  officers,  within  forty-eight  hours  after 
the  filing  of  said  petition,  a  copy  of  said  notice  shall  be  mailed 
to  each  of  the  person.s  affected  by  said  petition  or  proceeding 
whose  place  of  residence  or  place  of  business  is  unknown  to 
said  corporation  or  any  of  its  officers,  addressed  to  them,  postage 
prepaid,  at  the  county  seat  of  the  county,  or  county  and  city, 
where  the  place  of  business  of  said  corporation  is  located.  In 
addition  to  the  notice  by  publication,  the  petitioner  shall  address 
a  copy  of  said  notice  to  each  of  the  stockholders  of  said  corpora- 
tion, and  also  to  each  of  the  persons  affected  by  said  petition, 


S2  CTVTT,  OODR.  §  IM]^ 

wliust'  iiaines  and  iilaecs  of  residence  or  Imsinoss  are  known  1o 
the  coriiuratiou  or  any  of  its  officers,  at  his  place  of  business  or 
residence,  postage  prepaid,  which  notice  shall  be  mailed  to  such 
stockholders  or  persons  within  forty-eight  hours  after  the  filing 
of  said  petition.  The  court  before  proceeding  to  hear  the  case, 
shall  require  proof  to  be  made  that  notice  has  been  published 
and  given  as  hereinbefore  required  and  service  of  such  notice 
personally  if  the  same  has  been  so  served  and  if  the  same  has 
not  been  so  served,  an  affidavit  of  the  petitioner  stating  the 
reasons  why  such  personal  service  has  not  been  made,  shall  also 
he  then  filed.  Upon  the  completion  of  said  publication,  said 
court  shall  have  jurisdiction  to  inquire  into  and  determine  the 
loss,  injury  or  destruction  of  such  minutes,  records,  seal,  assess- 
ni<>nt  book,  stock  journal,  stock  ledger,  certificate  book,  .certifi- 
cates of  stock  or  bonds,  or  other  papers  and  documents,  and  to 
fix  and  determine  by  its  judgment  or  decree,  the  ownership  of 
said  certificates  of  stock  or  bonds  and  the  persons  entitled 
thereto,  and  to  direct  such  corporation  to  restore  its  records, 
seal,  assessment  book,  stock  journal,  stock  ledger,  certificate 
book,  certificates  of  stock  or  bonds  or  any  other  paper  or  record 
so  lost,  injured  or  destroyed,  and  to  issue  new  bonds  or  certifi- 
cates of  stock  or  other  paper  or  document  to  any  person  or  per- 
.'■ons  to  whom  the  same  may  belong  or  who  may  be  entitled 
Ihci'cto,  as  determined  by  the  judgment  of  the  court.  Any  stock," 
liond  or  other  paper,  the  ownership  of  which  can  not  be  deter- 
mined, shall  be  found  by  the  court,  by  its  judgment,  to  belong 
to  unknown  owners,  and  in  all  proceedings  of  such  corporation, 
including  proceedings  for  assessment  of  stock,  and  the  collection 
of  such  assessment,  and  the  payment  of  dividends,  and  notice  of 
sale  and  sale  for  delinquent  assessments,  said  stock  or  dividends 
shall  be  so  designated  as  belonging  to  unknown  owuer.s.  without 
giving  the  name  of  the  owner  thereof  or  the  number  of  tlu'  cer- 
tificate or  series  or  issue. 

Enacted  June  18,  1906;  stats.  lOOO.  p.  84.      . 

See,  also,  "Certificates,"  statutes  at  large,  Apiiendix. 


S  877  CIVIL  CODE.  S3 

Akticle  II. 

Records. 

Sec.  377.     Records — of  what,  and  how  kept. 

378.     Other  records  to  be  kept  by  corporations  for  profit,  and 
■    others. 

Records — of  what,  and  how  kept. 

§  377.  All  corporations  for  profit  are  required  to  keep  a 
record  of  all  their  business  transactions ;  a  journal  of  all  meet- 
ings of  their  directors,  members,  or  stockholders,  with  the  time 
and  place  of  holding  the  same,  whether  regular  or  special,  and 
if  special,  its  object,  how  authorized,  and  the  notice  thereof 
given.  The  record  must  embrace  every  act  done  or  ordered  to 
be  done  ;  who  were  present,  and  who  absent ;  and,  if  requested 
by  any  director,  member,  or  stockholder,  the  time  shall  be  noted 
when  he  entered  the  meeting  or  obtained  leave  of  absence  there- 
from. On  a  similar  request,  the  aj^es  and  noes  must  be  taken 
ou  any  proposition,  and  a  record  thereof  made.  On  similar 
request,  the  protest  of  any  director,  member,  or  stockholder,  to 
any  action  or  proposed  action,  must  be  entered  in  full — all  such 
records  to  be  open  to  the  inspection  of  any  director,  member, 
stockholder,  or  creditor  of  the  corporation. 
Enacted  March  21,  1872. 

63  Cal.  484;  76  Cal.  26;  78  Cal.  633;  94  Cal.  549;  107 
Cal.  636 ;  135  Cal.  625 ;  146  Cal.  223 ;  5  Cal.  App.  621 ; 
VIII  Cal.  App.  Dec.  522. 
Penalty  for  refusal  to  permit  inspection  :  Pen.  C.  §  565. 

Other  records  to  be  kept  by  corporations  for  profit,  and  otiiers. 
§  378.  In  addition  to  the  records  required  to  be  kept  by  the 
preceding  section,  corporations  for  profit  must  keep  a  book,  to 
be  known  as  the  "stock  and  transfer  book,"  in  which  must  be 
kept  a  record  of  all  stock ;  the  names  of  the  stockholders  or 
members,  alphabetically  arranged ;  installments  paid  or  unpaid  ; 
assessments  levied  and  paid  or  unpaid ;  a  statement  of  every 
alienation,  sale,  or  transfer  of  stock  made,  the  date  thereof,  and 
by  and  to  whom  ;  and  all  such  other  records  as  the  by-laws 
prescribe.  Corporations  for  religious  and  benevolent  purposes 
must  provide  in   their  by-laws  for  such  records  to  be   kept  as 


84  CIVIL  CODE.  §  378 

may  be  necessary.     Such  stock  and  transfer  book  must  be  kept 
open  to  the  inspection  of  any  stockholder,  member,  or  creditor. 
Enacted  March  21,  1872. 

107  Cal.  453,  G3G ;  146  Cal.  223 ;  2  Cal.  App.  639. 

Article  III. 

Examination  of  Corporations,    Etc. 

Sec.  382.     Examination  into  affairs  of  corporations,  how  made  by 
officers  of  state. 

383.  Examination  made  by  the  legislature. 

384.  Chapter  and  article  may  be  repealed.     [Repealed.] 

Examination    into   affairs   of   corporations,    how   made    by   officers 
of  state. 

§  382.  The  attorney  general  or  district  attorney,  whenever 
and  as  often  as  required  by  the  governor,  must  examine  into  the 
affairs  and  condition  of  any  corporation  in  this  state,  and  report 
such  examination,  in  writing,  together  with  a  detailed  statement 
of  facts,  to  the  governor,  who  must  lay  the  same  before  the  legis- 
lature ;  and  for  that  purpose  the  attorney  general  or  district 
attorney  may  administer  all  necessary  oaths  to  the  directors  and 
ofBcers  of  any  corporation,  and  maj'  examine  them  on  oath  in 
relation  to  the  affairs  and  condition  thereof,  and  may  examine 
the  books,  papers,  and  documents  belonging  to  such  corporation, 
or  appertaining  to  its  affairs  and  condition. 

Enacted  March  21,  1872. 
72  Cal.  23. 

Proceedings  against  corporation  for  unlawful  exercise  of 
franchise  :  Code  Civ.  Proc.  §  803. 

Allowing  inspection  of  books :  Pen.  C.  §  565. 

Examination   made  by  the   legislature. 

S  383.  The  legislature,  or  either  branch  thereof,  may  examine 
into  the  affairs  and  condition  of  any  corporation  in  this  state  at 
all  times ;  and  for  that  purpose,  any  committee  appointed  by  the 
legislature,  or  either  branch  thereof,  may  administer  all  neces- 
sary oaths  to  the  directors,  officers,  and  stockholders  of  such 
corporation,  and  may  examine  them  on  oath  in  relation  to  the 
affairs  and  condition  thereof;  and  may  examine  the  safes,  books, 
papers,  and  documents  belonging  to  such  corporation,  or  pertain- 
ing to  its  affairs  and  condition,  and  compel  the  production  qf  all 
keys,  books,  papers,  and  documents  by  summary  process,  to  be 


§  S.'v'?  civn,  CODE.  85 

issued  ou  application  to  any  court  of  record  or  any  judge  thereof, 
under  such  rules  and  regulations  as  the  court  may  prescribe. 
Enacted  March  21,  1872. 
1  Cal.  App.  67. 

Chapter  and  article  may  be  repealed.     [Repealed.] 

§  384.     Chapter    and    article    may    be    repealed.      [Repealed 

March  IS,  1907;  stats.  1907,  p.  578.] 
See  note  to  sec.  403,  post. 

Note. — §  384.  As  a  result  of  the  oversight  in  not  repealing 
section  384  at  the  time  section  4  04  was  added  in  1905,  there  were 
two  sections  in  the  Civil  Code  containing  identical  language,  one 
being  384,  and  the  other  404  ;  384  was  not  in  the  proper  place, 
and  404  was.  Section  384  was  therefore  repealed  in  1907,  leav- 
ing section  404  intact,  and  a  proviso  was  added  in  the  repealing 
act  so  that  any  rights  acquired  under  section  384  should  not  be 
lost,  but  continued  in  force  under  the  provisions  of  section  404. 


Article  IV. 

Judgment  Against  and  Sale  of  Corporate  Property. 

Sec.  388.  Franchise  may  be  treated  as  property,  and  sold  under 
execution. 

389.  Purchaser  to  transact  business  of  corporation. 

390.  Purchaser  may  recover  penalties,  etc. 

391.  Corporation  to  retain  powers  after  sale-. 

392.  Redemption. 

393.  Sale  under  e.xecution,  where  made. 

Franchise  may  be  treated  as  property,  and  sold  under  execution. 

§  388.  For  the  satisfaction  of  any  judgment  against  any  per- 
son, conij)any,  or  corporation  having  any  franchise  other  than 
the  franchise  of  being  a  corporation,  such  franchise,  and  all  the 
rights  and  privileges  thereof,  may  be  levied  upon  and  sold  under 
execution,  in  the  same  manner,  and  with  tlie  same  effect,  as  any 
other  property. 

Amended  March  20,  1905;  stats.  1905,  p.  409. 
80  Cal.  341 ;  86  Cal.  283 ;  98  Cal.  313. 

Note. — §  388.  Tliis  section  as  it  stood  applied  only  to  corpoi-a- 
tions  authorized  to  receive  tolls,  and  was  probably  unconstitu- 
tional as  creating  a  special  law  where  a  general  law  may  be 
made  applicable.  (See  Krause  vs.  Durbrow,  19  Cal.  Dec.  93.) 
The  amendment  makes  tlie  section  applicable  to  nil  coi-porations. 

Seizure  on  execution  :  Code  Civ.  Proc.  §  688. 


.sr,  riiviL  coDR.  §  389 

Purchaser  to  transact  business  of  corporation. 

§  389.  The  inirchaser  at  the  sale  must  receive  a  certificate  of 
purchase  of  the  franchise,  and  be  immediately  let  into  the  posses- 
sion of  all  property  necessary  for  the  exercise  of  the  powers  and 
the  receipt  of  the  proceeds  thereof,  and  must  thereafter  conduct 
the  business  of  such  corporation,  with  all  its  powei's  and  privi- 
leges, and  subject  to  all  its  liabilities,  until  the  redemption  of  the 
same,  as  hereinafter  provided. 

Enacted  March  21.  1S72. 

Purchaser  may  recover  penalties,  etc. 

S  390.  The  purchaser,  or  his  a.ssigueo,  is  entitled  to  recover 
any  penalties  imposed  I>y  law  and  recoverable  by  the  corpora- 
tion for  an  injury  to  the  franchise  or  property  thereof,  or  for 
any  damages,  or  other  cause,  occurring  during  the  time  he  holds 
the  same,  and  may  use  the  name  of  the  corporation  for  the  pur- 
pose of  any  action  necessary  to  recover  the  same.  A  recovery 
for  damages  or  any  penalties  thus  had  is  a  bar  to  any  subsequent 
action  by  or  on  behalf  of  the  corporation  for  the  same. 

Enacted  March  21,  1872. 

Corporation  to  retain   powers  after  sale. 

S391.  The  person,  company,  or  corporation  whose  franchise 
is  sold,  as  in  this  article  provided,  in  all  other  respects  retains 
the  same  powers,  is  bound  to  the  discharge  of  the  same  duties, 
/ind  is  liable  (o  the  same  penalties  and  forfeitures,  as  before 
such  sale. 

Amended  March  20,  1905;  stats.  1905.  p.  409. 

Note. — §  391.  The  amendment  makes  the  section  applicable  to 
poi'sons  and  companies  as  well  as  to  corporations. 

Redemption. 

§  392.  Kedemption  from  any  such  sale  may  be  had  as  pro- 
vided in  the  Code  of  Civil  Procedure  in  the  ca.se  of  redemptions 
from  sales  of  real  estate  on  execution. 

Amended  March  20,  1905  ;  stats.  1905,  p.  409. 

Note. — §  392.  The  amendment  makes  applicable  to  an  execu- 
tion sale  of  franchises  the  law  of  redemption  applicable  to  other 
sales  of  real  property. 

Sale  under  execution,  where  made. 

§  393.  The  sale  of  any  franchise  under  execution  nuist  b(> 
made  in  the  county  in  which  Ihe  corporation  has  its  principal 


§  39;i  OTVTT,   CODK.  87 

pliK-e   of    husiuess,    oi'    in    wliicli    the    ])ropei-l.\',    or    some    iiortioii 
thereof,  is  situated. 

Amended  March  20,  1905;  stats.  1905,  p.  409. 

Note. — §  393.  Omits  the  words  "upon  which  the  taxes  are 
paid,"  tliat  having  apparently  no  relevancy  to  the  section. 

CHAPTER   IV. 
EXTENSION    AND    DISSOLUTION    OF    CORPORATIONS. 

Sec.  .399.  Proceedings  to  disincorporate.      [Repealed.] 

400.  On  dissolution,  directors  to  be  trustees  for  creditors. 

401.  Extension  of  corporate  existence,  how  made. 

402.  How     corporations     may     continue     their     existence. 

[Repealed.] 

403.  Title    one    to    apply    to    all    corporations,    with    certain 

exceptions.      [Repealed.] 

Proceedings  to   disincorporate.      [Repealed.] 

§  399.  Proceedings  to  disincorporate.  [Repealed  March  21, 
1905;  stats.  1905,  p.  563.] 

Note. — §  399.  This  section,  which  purports  merely  to  desig- 
nate the  place  in  the  Code  of  Civil  Procedure  where  the  dissolu- 
tion of  corporations  is  provided  for,  does  not  state  any  rule  of 
law  and  constitutes  but  an  imperfect  index  to  the  pi-ovisions 
i-eferred  to,  and  is,  therefore,  repealed. 

Involuntary  dissolution  :   (-ode  Civ.  Proc,  §  80o. 
Voluntary  dissolution  :  Code  Civ.  Proc.  §§  1227-1233. 
For   dissolution    of   banks,    etc.,    see    "Banlcs   and    Baukiu.n," 
Appendi.v. 

On   dissolution,   directors  to   be  trustees  for  creditors. 

§  400.  Unless  other  persons  are  appointed  by  the  court,  the 
directors  or  managers  of  the  affairs  of  a  corporation  at  the  time 
of  its  dissolution  are  trustees  of  the  creditors  and  stockholders 
or  members  of  the  corporation  dissolved,  and  have  full  power  to 
settle  the  affairs  of  the  corporation. 

Amended  March  21,  1905;  stats.  1905,  p.  563. 

84  Cal.  358;  100  Cal.  119;  101  Cal.  147;  150  Cal.  580, 
581. 

Note. — §  400.  The  change  consists  in  the  substitution  of  the 
word  "a"  for  "such"  before  the  word  "corporation"  in  line  2. 


S8  CIVIL  CODE.  §  401 

Extension  of  corporate  existence,  how  made. 

§401.  Every  corporation  formed  for  a  period  less  tliaii  lifly 
years,  may,  at  any  time  prior  to  the  expiration  of  the  term  of 
its  corporate  existence,  extend  such  term  to  a  period  not  exceed- 
ing fifty  years  from  its  formation.  Such  extension  may  be  made 
at  any  meeting  of  the  stockholders  or  members  called  by  the 
directors  expressly  for  considering  the  subject  if  voted  by  stock- 
holders representing  two  thirds  of  the  capital  stock  ;  or  by  two 
thirds  of  the  members ;  or  may  be  made  upon  the  written  assent 
of  two  thirds  of  the  members  or  of  stockholders  representing 
two  thirds  of  the  capital  stock.  A  certificate  of  the  proceedings 
of  the  meeting  upon  .such  vote,  or  upon  such  assent,  must  bo 
signed  by  the  chairman  and  secretary  of  the  meeting  and  a 
majority  of  the  directors,  and  be  filed  in  the  otfice  of  the  county 
clerk  where  the  original  articles  of  incorporation  were  filed,  and 
a  certified  copy  thereof  in  the  office  of  the  secretary  of  state, 
and  thereupon  the  term  of  the  corporation  is  extended  for  the 
.specified  period. 

.    Amended  March  21,  1905;  stats.  1905,  p.  5CA. 
109  Cal.  582;  322  Cal.  330. 

Ed.  Note. — §401.  Section  401  was  enacted  March  21,  1872; 
amended  1873-4,  p.  209;  1905,  p.  564;  1907,  p.  344.  The  amend- 
-ment  of  1907  provided  that  a  corporation  might  extend  and  renew 
the  term  of  its  corporate  existence  from  the  date  of  such  exten- 
sion. (See  §  4  01,  as  amended  in  1907,  following.)  In  Boca  Mill 
Co.  vs.  Curry,  XXXVI  Cal.  Dec,  p.  261,  decided  October  8,  1908, 
the  supreme  court  held  the  amendment  of  1907  to  be  unconstitu- 
tional. (Const.,  art.  XII,  sec.  7.)  Section  401  as  it  stood  pre- 
vious to  amendment,  perhaps  still  in  force  (see  decision).  But 
at  the  general  election  held  November  3,  1908,  an  amendment  to 
section  7  of  article  XII  of  the  constitution  was  adopted,  covering 
the  matter  contained  in  section  401  of  the  Civil  Code  as  it  was 
amended  in  1907.  See  Constitution,  ante.  See,  also,  Appendix, 
for  forms  of  certificates  for  extension  of  corporate  existence 
under  section  401,  Civil  Code,  and  under  section  7,  article  XII, 
Constitution. 

§401.  P^very  corporation  heretofore  or  hereafter  formed,  and 
existing  under  the  laws  of  this  state,  may  at  any  time  prior  to 
the  expiration  of  the  term  of  its  corporate  existence  extend  .such 
term  to  a  period  not  exceeding  fifty  years  from  the  date  of  such 
extension.  Such  extension  may  be  made  at  any  meeting  of  the 
stockholders,  or  members,  called  by  the  directors  expressly   for 


§  401  CIVIL   CODE.  SO 

considering  the  subject,  if  voted  for  by  stockholders  representing 
two  thirds  of  the  capital  stock  ;  or  by  two  thirds  of  the  members 
where  there  is  no  capital  stock  ;  or  may  be  made  upon  the  writ- 
ten assent  of  two  thirds  of  the  members  or  of  stockholders  rep- 
resenting two  thirds  of  the  capital  stock.  A  certiticate  of  such 
\ote  or  assent  shall  be  signed  and  sworn  to  by  the  president 
and  secretary  and  by  a  majority  of  the  directors  of  the  corpora- 
tion, and  filed  in  the  office  of  the  county  clerk  where  the  originnJ 
articles  of  incorporation  were  filed,  and  a  copy  certified  by  such 
clerk  shall  be  filed  in  the  office  of  the  secretary  of  state,  and 
thereupon  the  term  of  existence  of  the  corporation  shall  be 
extended  for  the  period  specified  in  such  certificate.  The  fees 
for  certifying  such  certificate  and  filing  the  same  and  the  cer- 
tified copy  thereof,  shall  be  the  same  as  those  prescribed  by  law 
for  certifying  and  filing  articles  of  incorporation  in  such  casi^s. 
In  no  event  shall  such  extension  be  construed  to  prolong  or 
extend  the  duration  of  any  franchise  or  privilege  heretofore 
granted  to  any  corporation  or  joint  stock  company  by  special  legis- 
lative act,  or  by  the  municipal  authoritie.s  of  any  county,  city, 
city  and  c;oiinty,  town,  or  other  political  su))divisiou  of  this 
state,  beyond  the  term  fixed  by  the  provisions  of  t\w  act,  ordi- 
nance or  resolution  conferring  such  privilege  or  franchise,  (ir 
beyond  the  terra  fixed  for  the  maximum  period  of  existence  of 
such  corporation  or  joint  stock  company  by  laws  in  force  and 
governing  the  formation  and  organization  thereof  at  the  timr 
such  coi'poration  or  joint  stock  company  was  formed  or  organ- 
ized. 

Amended  .March  IS,  ]007;  stats.  3007,  p.  344. 

Ed  Note. — §  401.  See  note  to  section  401,  ante,  as  it  stood  in 
1!)05.  See,  also,  Appendix,  for  form  of  certificate  of  extension  of 
corporate  existence  under  section  7,  article  XI  [,  Constitution. 

How  corporations   may  continue  tlieir  existence.      [Repealed.] 

§402.  How  corporations  may  continue^  their  existence.  [Re- 
pealed March  3(»,  1S74  ;  ainendts.  1873-4,  p.  200.  | 

Title   one  to   apply   to   all    corporations,    with    certain    exceptions. 
[Repealed.  I 

8  403.     Title  -oiie    to    api)ly    in    all    cur(M>ra(  i<ins    with    (cil.iiu 
exceptions.      [Hepealed  Marcli  L'(i,  \'.m~)  \  stats.  100."),  p.  410.] 
Note. — See  note  to  §  403  in  cliapter  V. 


90  CIVIL  couE.  §  403 


CHAPTER  V. 

GENERAL     PROVISIONS     AFFECTING     CORPORATIONS. 

Sec.  403.     Title    one    to    apply    to    all    corporations,    with    certain 
exceptions. 
404.     Power  of  the  legislature  to  amend  or  repeal  this  part, 
or  any  title,  chapter,  article,  or  section  thereof,  and 
to  dissolve  all  corporations  created  thereunder. 

Title   one   to   apply  to   all    corporations,    with    certain    exceptions. 

§  403.  The  provisions  of  this  title  are  applicable  to  every 
corporation,  unless  such  corporation  is  excepted  from  its  opera- 
tion, or  unless  a  special  provision  is  made  in  relation  thereto 
inconsistent  with  some  provision  in  this  title,  in  which  case  the 
special  provision  prevails. 

Enacted  March  20,  1905;  stats.  1905,  p.  410. 
109  Cal.  582 ;  122  Cal.  339. 

NoTE.^§§  403,  404.  The  amendment  of  1905  added  a  new 
chapter  entitled  "General  Provisions  Affecting  Corporations." 
Said  chapter  is  made  up  of  the  old  section  403,  which  stood  in  a 
chapter  entitled  "Extension  and  Dissolution  of  Corporations," 
and  of  the  matter  in  old  section  384,  which  stood  in  a  chapter 
entitled  "Examination  of  Corporations."  The  object  of  the  rear- 
rangement was  the  placing  of  the  sections  under  a  more  appro- 
priate chapter  heading. 

Power  of  the   legislature   to   amend   or   repeal   this   part,   or   any 
title,  chapter,  article,   or  section  thereof,   and  to  dissolve  all 
corporations  created  thereunder. 
§  404.     The  legislature  may  at  any  time  auieud  or  repeal  this 
part,  or  any  title,  chapter,  article,  or  section  thereof,  and  dis- 
solve all  corporations  created  thereunder ;  but  such  amendment 
or  repeal  does  not,  nor  does  the  dissolution  of  any  such  corpora- 
tion, take  away  or  impair  any  remedy  given  against  any  such 
corporation,  its  stockholders  or  officers,  for  any  liability  which 
has  been  previously  incurred. 

Enacted  March  20,  1905  ;  stats.  1905,  p.  410. 

145  Cal.  480. 
Note. — Sec  note  to  preceding  section. 


§  405  civir  coDK.  91 

CHAPTER  VI. 

LlJIiapLor  VI  added  March  21,  1905;  stals.   1905,  p.  tJaO.J 
FOREIGN   CORPORATIONS. 

Sec.  405.     Designation  of  person  on  whom  process  may  be  .served. 
Service  on  the  secretary  of  state,  when  valid. 

406.  Foreign  corporations,  statute  of  limitations  in  favor  of. 

Proof   of   corporate   existence.     Change    of   designa- 
tion. 

407.  Foreign   railway  corporations,    i-iglit.s   of,    in    this  state. 

408.  Foreign  corporations  to  file  certified  copies  of  articles 

of  incorporation. 

4  09.  Foreign  corporations,  fees  to  be  paid  by,  on  filing  cer- 
tified copies  of  articles  of  incorporation. 

410.  Foreign  corporations,  penalty  for  failure  to  file  certi- 
fied copies  of  articles  of  incorporation. 

Designation   of  person  on  whom   process  may  be  served — Service 
on  the  secretary  of  state,  when  valid. 

§  405.  Every  corporation  other  than  those  created  by  or 
under  the  laws  of  this  state  must,  at  the  time  of  filing  the  cer- 
tified copy  of  its  articles  of  incorporation,  file  in  the  office  of 
the  secretary  of  state  a  designation  of  some  person  residing 
within  the  state  upon  whom  process  issued  by  authority  of  or 
under  any  law  of  this  state  may  be  served.  A  copy  of  such 
designation,  duly  certified  by  the  secretary  of  state,  is  sufficient 
evidence  of  such  appointment.  Such  process  may  be  served  on 
the  person  so  designated,  or,  in  the  event  that  no  such  person 
is  designated,  then  on  the  secretary  of  state,  and  the  service  is 
a  valid  service  on  such  corporation. 

Amended  March  18,  1907  ;  stats.  1907,  p.  558. 

138  Cal.  788 ;  145  Cal.  GOl ;  14G  Cal.  G50 ;  153  Cal.  405  ; 
1  Cal.  App.  719,  720,  721 ;  VII  Cal.  App.  Dec.  540,  541. 

Note. — §§  405,  406,  407.  These  sections  codify  the  statute  of 
1871-2,  page  826,  as  amended,  1899,  page  111,  and  section  1, 
statute  of  1880,  page  21. 

Foreign    corporations,    statute   of    limitations    in    favor   of — Proof 

of  corporate  existence — Change  of  designation. 

§406.     Every  corporation  which  complies  with  the  provisions 

of  this  cliapter  is  thereafter  entitled  to  the  benefit  of  the  laws 

of  this  state   limiting   the   time   for   the   commencement  of   civil 


92  civn,  CODE.  §  400 

aelioiis,  I)nt  no  oorpoi-alion  not  croated  by  or  nnder  the  laws 
oL"  lliis  slato  is  ciilillcd  l()  (ho  honefit  thereof,  nor  can  any 
siuli  roriioration  maintain  or  defend  any  action  or  proceeding- 
in  any  court  of  this  state  nntil  the  corporation  has  complied 
uilli  (he  provisions  of  the  preceding  section.  In  any  action 
or  proceeding  in.stitnted  against  any  body  styled  as  a  corpora- 
tion, but  not  created  by  nor  nnder  the  laws  of  this  state,  evi- 
dence that  such  body  has  acted  as  a  corporation,  or  employed 
methods  usually  employed  by  corporations,  must  be  received  by 
the  court  for  the  purpose  of  proving  the  existence  of  such  cor- 
poration, the  sufficiency  of  such  evidence  to  be  determined  by 
the  court  with  like  etfect  as  in  other  cases.  Every  corporation 
which  has  complied  with  the  laws  then  in  force,  requiring  it  to 
make  and  file  a  designation  of  the  person  upon  whom  process 
against  it  may  be  served,  need  not  make  or  file  any  further 
designation.  Any  designation  heretofore  or  hereafter  made  may 
be  revoked  by  the  filing  by  the  corporation  with  the  secretary 
of  state  of  a  writing  stating  such  revocation.  Within  forty 
days  after  the  death  or  removal  from  the  state  of  any  person 
designated  by  the  corporation,  or  after  the  revocation  of  the 
designation,  the  corporation  must  make  a  new  designation,  or  be 
subject  to  the  provisions  and  penalties  of  this  cha]<ter. 

Enacted  March  21,  1905;  stats.  1905,  p.  630. 
153  Cal.  537;  VII  Cal.  App.  Dec.  540. 

NoTK. — See  note  to  S  4  05. 

Foreign   railway  corporations,   rights  of,   in   this  state. 

§  407.  Every  railway  or  other  corporation  organized  for  the 
purpose  of  carrying  freight  or  passengers  under  or  by  virtue 
of  the  laws  of  the  United  States,  or  of  any  state  or  territory 
thereof,  may  build  raili'oads,  exercise  the  right  of  eminent 
domain,  and  transact  any  other  business  which  it  might  do  if 
it  were  created  and  organized  under  or  by  virtue  of  the  laws  of 
this  state,  and  has  the  same  rights,  privileges,  and  immunities, 
and  is  subject  to  the  same  laws,  penalties,  obligations,  and  bur- 
dens as  if  created  or  organized  under  and  by  virtue  of  the  laws 
of  this  state.  Nothing  contained  in  this  section  shall  he  con- 
strued to  exempt  any  corporation  from  any  duty  or  liability 
imposed  upon  it  by  any  of  the  provisions  of  this  chaptiM-. 

Enacted  March  21,  1905;  stats.  1905,  p.  031. 
VIII  Cal.  App.  Dec.  272,  273. 

Note. — See  note  to  §  405. 


§  408  CIVIL  CODE.  93 

Foreign  corporations  to  file  certified  copies  of  articles  of  incor- 
poration. 

§  408.  Every  corporatiou  orgauized  imder  the  laws  of  auolher 
state,  territory,  or  of  a  foreign  country,  whicli  is  now  doing 
business  in  this  state,  or  is  maintaining  an  office  herein,  or 
whicli  shall  hereafter  do  business  in  this  state  or  maintain  an 
office  herein,  or  which  shall  enter  this  state  for  the  purpose  of 
doing  business  herein,  must  file  in  the  office  of  tlie  secretary  of 
state  of  the  State  of  California  a  certified  copy  of  its  articles  of 
incorporation,  or  of  its  charter,  or  of  the  statute  or  statutes,  or 
legislative,  or  executive,  or  governmental  act  or  acfs  creating 
it,  in  cases  where  it  has  been  created  by  charter,  or  statute,  or 
legislative,  or  executive,  or  governmental  act,  duly  certified  I)y 
the  secretary  of  state,  or  other  officer  authorized  by  the  law  of 
the  jurisdiction  under  which  such  corporation  is  formed  to  cer- 
tify such  copy,  and  a  certified  copy  thereof,  duly  certified  by  the 
secretaiT  of  state  of  this  state,  in  the  office  of  the  county  clerli 
of  the  county  where  its  principal  place  of  business  is  located, 
and  also  where  such  corporation  owns  property. 

Amended  March  IS,  1907 ;  stats.  1907,  p.  559. 

153  Cal.  535 ;  VIII  Cal.  App.  Dec.  274. 

Note. — §§  408,  400,  4t0.  These  sections  codify  the  statute  of 
1901,  page  108. 

Foreign  corporations,  fees  to  be  paid  by,  on  filing  certified  copies 
of  articles  of  incorporation. 

§  409.  For  filing  and  issuing  a  certified  copy  as  required  in 
section  four  hundred  and  eight  of  this  code,  corporations  formed 
under  the  laws  of  another  state,  or  of  a  territory,  or  of  a  foreign 
country,  must  pay  the  same  fees  as  are  paid  by  coii)orations 
formed  under  the  laws  of  this  state. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  G31. 

Note. — See  note  to  §  408. 

Foreign  corporations,  penalty  for  failure  to  file  certified  copies 
of  articles  of  incorporation. 
§  410.  Every  corporation  organized  under  the  laws  of  another 
state,  territory,  or  of  a  foreign  country,  which  shall  neglect  or 
fail,  within  ninety  days  from  the  taking  effect  of  this  section, 
to  comply  with  the  conditions  of  sections  four  hundred  and 
eight  and  four  hundred  and  nine  of  this  code,  shall  be  subject 
to  a  fine  of  not  less  than  five  hundred  dollars,  to  be  recovered 


94  CIVIL  CODE.  §  410 

ill  any  court  of  competent  jurisdicliou  ;  aud  it  is  hereby  made 
the  duty  of  the  secretary  of  state,  as  he  may  he  advised  that 
corporations  are  doing  business  in  contravention  of  sections  four 
hundred  and  eight  and  four  lumdred  and  nine  of  this  code,  to 
report  the  fact  to  tlie  governor,  who  shall  irustruct  the  district 
attorney  of  the  county  wherein  such  corporation  has  its  prin- 
cipal place  of  business,  or  the  attorney  general  of  the  state,  or 
both,  as  soon  as  practicable,  to  institute  proceedings  to  recover 
the  fine  provided  for  in  this  section,  and  the  amount  so  recovered 
must  be  paid  into  the  state  treasury  to  the  credit  of  thfe  general 
fund  of  the  state;  in  addition  to  which  penalty,  no  foreign  cor- 
l>oration  which  shall  fail  to  comply  with  sections  four  hundred 
and  eight  and  four  hundred  and  nine  of  this  code  can  maintain 
any  suit  or  action  in  any  of  the  courts  of  this  state  until  it  has 
complied  with  said  sections;  provided,  that  any  such  corporation 
which,  prior  to  the  Sth  day  of  March.  1901,  shall  have  complied 
with  the  provisions  of  the  act  entitled  "An  act  to  amend  'An  act 
in  relation  to  foreign  corporations,'  approved  April  1,  3872," 
approved  March  17,  1899,  is  exempted  from  the  provisions  of 
this  section  and  the  two  sections  next  preceding. 

Enacted  March  21,  1905;  s(at.s.  1005.  p.  031. 
153  Cal.  535,  536. 

Note. — See   note   to   §  4  08. 

Foreign  insurance  corporations:   See,  also,  I*ol.  O.  S  <»l(i. 


TITLE  II. 


Insurance  Corporations. 


Chap.  T.     General    provisions.      §§  414-421. 

II.     Fire    and    marine    insurance    corpoi'ations.      §§  424-432. 

III.  Mutual    life,    health,    and    accident    insurance    corpora- 

tions.    §§  437-452. 

IV.  Mutual    benefit    and    life    associations.      §§  452a-453. 
V.     To    discover    fire    and    save    property    and    human    life 

from    destruction     thereby.      §§  453a-453c. 
\'I.     Life,     health,     accident,     and    annuity     or    endowment 
insurance  on  the  assessment  plan.     §§  453rf-453j). 


§  414  CIVIL  CODE.  95 

CHAPTER  I. 
GENERAL    PROVISIONS. 

See,  also,  I'ol.  C.  §  588  ct  seq.,  aiul  "Insurauco,"  statutes  at 
large.  Appendix. 

Sec.  414.  Subscriptions    to    capital    stock    opened,    and    liow    col- 
lected. 

415.  Purchase   and   conveyance   of   real   estate. 

416.  Policies,    how    issued   and   by   whom    signed. 

417.  Dividends,    of   wliat,   and  when   declared. 

418.  Directors  liable  for  loss  on  insurance  in  certain  cases. 

419.  Capital   to  be   at  least  two  hundred   tliousand  dollars. 

[Repealed.] 

420.  Exception,    capital    of    one    hundred    thousand    dollars. 

[Repealed.] 

421.  Investment    of    capital.     [Repealed.] 

421.     Capital    and   accumulations,    how    invested. 

Subscriptions  to  capital  stock  opened,  and  liow  collected. 

§  414.  After  tlie  secretary  of  state  issues  the  certificate  of 
iucorponition,  as  provided  in  article  cue,  cliapter  one,  title  cue, 
of  this  part,  tlie  directors  named  in  the  articles  of  incorporation 
must  proceed  in  the  manner  specified,  or  in  their  by-laws,  or  if 
iione,  then  in  such  manner  as  they  may  by  order  adopt,  to  open 
boolis  of  subscription  to  the  capital  stock  then  unsubscribed,  u)id 
to  secure  subscriptions  to  the  full  amount  of  the  fixed  capital  ; 
to  levy  assessments  and  installments  thereon,  and  to  collect  the 
same,  as  in  chapter  two  of  title  one  provided. 

Enacted  March  21,  1872. 

Purchase  and   conveyance  of   real   estate. 

§  415.  No  insurance  corporation  may  purchase,  hold  or  con- 
vey real  estate,  except  as  hereinafter  set  forth,  to  wit : 

1.  The  building  in  which  it  has  its  principal  oHice  and  the 
land  upon  which  it  stands. 

2.  Also,  such  as  may  be  requisite  for  its  accommodation  in 
the  convenient  transaction  of  its  business. 

3.  Also,  such  as  may  be  conveyed  to  it,  or  to  any  person  for  it, 
by  way  of  mortgage,  or  in  trust  or  otherwise, to  secure  or  pro- 
vide for  the  payment  of  loans  previously  contracted  or  for 
n;oneys  due. 


!>0  CIVIL  CODE.  §  415 

4.  Also,  such  as  may  be  purchased  at  sales  ui)on  deeds  of  trust, 
or  judgments  obtained  or  made  for  such  loans  or  debts. 

5.  Also,  such  as  may  be  conveyed  to  it  in  satisfaction  of  debts 
previously  contracted  in  the  course  of  its  dealings. 

All  .such  real  estate,  mentioned  in  subdivisions  three,  four  and 
five,  so  acquired,  which  is  not  requisite  for  the  accommodation 
of  such  corporation  in  the  transaction  of  its  business,  must  be 
sold  and  disposed  of  within  five  years  after  such  coiijoration 
acquired  title  to  the  same. 

Amended  February  24,  1905 ;  stats.  1905,  p.  21. 

Policies,  how  issued  and  by  whom  signed. 

§416.  All  policies  made  by  insurance  corporations  must  be 
subscribed  by  the  president  or  vice-president,  or  in  case  of  the 
death,  absence,  or  disability  of  those  officers,  by  any  two  of  the 
directors,  and  countersigned  by  the  secretary  of  the  corporation. 
All  such  policies  are  as  binding  and  obligatory  upon  the  corpora- 
tion as  if  executed  over  the  corporate  seal. 

Enacted  March  21,  1872.      • 

Dividends,  of  what,  and  when  declared. 

§  417.  The  directors  of  every  insurance  corporation,  at  such 
(imes  as  their  by-laws  provide,  must  make,  declare,  and  pay  to 
the  stockholders  dividends  of  so  mvich  of  the  net  profits  of  the 
corporate  business  and  interest  on  capital  invested  as  to  them 
appears  advisable;  but  the  moneys  received  and  notes  taken  for 
premium  on  risks  which  are  undetermined  and  outstanding  at 
the  time  of  making  the  dividend  must  not  be  treated  as  profits, 
nor  divided,  except  as  provided  in  chapter  two  of  this  title. 

Enacted  March  21,  1872. 

Directors  liable  for  loss  on   insurance  in  certain  cases. 

§418.  If  any  insurance  corporation  is  under  liabilities  for 
losses  to  an  amount  equal  to  its  capital  stock,  and  the  president 
or  directors,  after  knowing  the  same,  make  any  new  or  further 
insurance,  the  estates  of  all  who  make  such  insurance,  or  assent 
thereto,  are  severally  and  jointly  liable  for  the  amount  of  any 
loss  which  takes  place  under  such  insurance. 

Enacted  March  21,  1872. 

Capital  to  be  at  least  two  hundred  thousand  dollars.     LRepealed.l 
§419.     Capital   tu  lie  at   least   two  hundred   thousand   dollars. 
[Repealed  March  8,  1907;  stats.  1907,  p.  141.] 


§  420  CIVIL  CODE.  97 

Exception,  capital  of  one  hundred  thousand  dollars.     [Repealed.] 
§  420.     Exception,   capital   of   one   hundred   thousand   dollars. 
[Kciwaled  March  S,  1907;  .stats.  1907,  p.  141.] 

Investment  of  capital.     [Repealed.] 

§421.  Investment  of  capital.  [Repealed  JVIarch  IS,  1907; 
stats.  1907,  p.  597.] 

Note. — §  421.  There  being  two  sections  421,  referring  to  the 
same  subject,  one  approved  March  3,  1905,  and  the  other  approved 
March  21,  1905,  tlie  former  was  repealed  and  the  latter  left 
intact. 

Capital   and   accumulations,   how   invested. 

§  421.  Companies  organized  under  the  laws  of  this  state  for 
the  transaction  of  business  in  any  kind  of  insurance,  may  invest 
their  capital  and  accumulations  in  the  following  named  securi- 
ties: 

1.  In  the  purchase  of,  or  loans  upon  interest-bearing  bonds  of 
the  United  States  government. 

2.  In  the  purchase  of,  or  loans  upon  interest-bearing  bonds  of 
any  of  the  states  of  the  United  States,  not  in  default  for  interest 
on  such  bonds. 

o.  In  the  purchase  of,  or  loans  upon  interest-bearing  bonds  of 
any  of  the  counties  and  incorporated  cities  and  towns  and  duly 
organized  school  districts  of  any  state  or  territory  of  the  United 
States  not  in  default  for  iuterest  on  such  bonds. 

4.  In  loans  upon  unincumbered  real  property,  no  loan  to 
exceed  sixty  per  cent  of  the  market  ^•aIue  of  any  piece  of  real 
estate  to  be  taken  as  security. 

5.  Corporations  engaged  in  the  business  of  insuring  titles  to 
real  estate  may,  after  the  investment  of  one  hundred  thousand 
dollars  in  the  manner  jjrovided  for  in  subdivisions  one,  two, 
three  and  four  of  this  section,  invest  an  amount  not  exceeding 
fifty  per  cent  of  their  subscribed  capital  stock,  in  the  prepara- 
tion or  purchase  of  the  materials  or  plant  necessary  to  enable 
them  to  engage  in  such  business ;  and  such  material  or  plant 
shall  be  deemed  an  asset  valued  at  the  actual  cost  thereof,  in 
all  statements  and  proceedings  required  by  law  for  the  ascer- 
l.'iinment  and  drtcrniin.ntion  of  the  condition  of  siirli  corpora- 
I  ions. 


98  CIVIL  couK.  §  421 

0.  Compauies  orgauized  for  and  engaged  in  the  business  of 
fire,  life,  health,  accident  and  marine  insurance,  may,  after  the 
investment  of  two  hundred  thousand  dollars,  and  companies  duly 
formed  or  organized  for  the  transaction  of  business  in  any  other 
kind  of  insurance  may,  after  the  investment  of  one  hundi-ed 
Ihousand  dollars,  in  the  manner  provided  in  subdivisions  one, 
two,  thi'ee  and  four  of  this  section,  invest  the  balance  of  their 
capital  and  any  accumulations  in  the  purchase  of  or  loans  upon 
the  stock  of  any  corporation  (except  mining  companies)  organ- 
ized and  carrying  on  business  under  the  laws  of  the  State  of 
California  which  have  at  the  time  of  investment  a  market  value 
of  not  less  than  their  paid-in  value,  and  which  are  rated  as  first- 
class  securities,  or  in  interest-bearing  bonds  of  any  corpora- 
tion of  any  state  or  territory  of  the  United  States  not  in  default 
of  interest ;  provided,  that  a  two-thirds  vote  of  all  the  directors 
of  such  corporations  shall  approve  such  investment.  It  shall  be 
the  duty  of  the  officers  of  such  corporation  to  report  quarterly 
dui'ing  the  months  of  January,  April,  July  and  October  of  each 
year  to  the  insurance  commissioner  a  list  of  such  investments  so 
made  by  them,  and  the  insurance  commissioner  may,  if  such 
investments,  or  any  of  them,  seem  injudicious  to  him,  require  the 
sale  of  the  same.  But  no  investment  in  the  securities  named  in 
subdivisions  one,  two,  three  and  six  of  this  section  must  be  made 
in  an  amount  exceeding  the  market  value  of  such  securities,  at 
the  date  of  such  investment. 

7.  Life  insurance  companies  may  loan  upon  their  own  policies  ; 
provided,  that  the  amount  so  loaned  upon  each  policy  shall  not 
exceed  the  reserve  against  said  policy  at  the  time  said  loan  is 
made ;  provided  further,  that  no  policy  loans  whatever  shall 
ever  be  used  as  security  which  may  be  deposited  with  the  insur- 
ance commissioner  under  section  six  hundred  and  thirty-four  of 
the  Political  Code ;  and  provided  further,  that  whenever  any 
such  loan  in  any  amount  is  made  on  a  policy  registered  with  the 
insurance  commissioner  under  said  section  six  hundred  and 
thirty-four  of  the  Political  Code,  such  registration  shall  be  forth- 
with canceled. 

Amended  March  22,  1907;  stats.  1907,  p.  890. 


§    t24  CIVIL  CODE.  00 

CHAPTER   II. 
FIRE,    MARINE,    AND    TITLE    INSURANCE    CORPORATIONS. 

(See,  also,  Pol.  C.  §  5SS  ct  scq.j  see  "Insurance,"  statutes  at 
large,  Appendix,  for  form  of  fire  policy.) 

Sec.  424.     Paj'nient    of    subscriptions.     Capital    to    be    all    paid 
up   in   twelve   months. 

425.  Certificate   of   capital   stock   paid  up   to   be   filed,    and 

when. 

426.  Property  which  may  be  insured. 

427.  Funds  may  be  invested,  how.     [Repealed.] 

428.  Limit   of   risk. 

429.  Amounts    to   be    reserved   before   making   dividends. 

430.  Reservation    by    companies    with    less    than    $200,000 

capital. 

431.  Amounts  to  be  reserved  by  life   insurance  companies. 

[Repealed.] 
4  32.     Corporations    for    insuring    titles    to    real    estate. 

Payment  of  subscriptions — Capital  to  be  all  paid  up  in  twelve 
months. 

§  424.  The  entire  capital  stock  of  every  fire  or  marine  insur- 
ance corporation  must  be  paid  up  in  cash  withiu  twelve  montlis 
from  the  filing  of  the  articles  of  incorporation,  and  no  policy  of 
insurance  must  be  issued  or  risk  taken  until  twenty-five  per  cent 
of  the  whole  capital  stock  is  paid  up. 

Enacted  March  21,  1872. 

Certificate  of  capita!  stock  paid  up  to  be  filed,  and  when. 

§  425.  The  president  and  a  majority  of  the  directors  must, 
within  thirty  days  after  the  payment  of  the  twenty-five  per 
cent  of  the  capital  stock,  and  also  within  thirty  days  after  the 
payment  of  the  last  installment  or  assessment  of  the  capital 
stock  limited  and  fixed,  prepare,  subscribe,  and  swear  to  a  cer- 
tificate setting  forth  the  amount  of  the  fixed  capital  and  the 
amount  thereof  paid  up  at  the  times  respectively  in  this  section 
named,  and  file  the  same  in  the  office  of  the  county  clerk  of  the 
county  where  the  principal  place  of  business  of  the  corporation 
is  located,  and  a  duplicate  thereof,  similarly  executed,  with  the 
insurance  commissioner. 

Enacted  March  21,  1872. 

Property  which  may  be  insured. 

§  426.  Every  corporation  formed  for  fire  or  marine  insurance, 
or  both,  may  make  insurance  on  all  insurable  interests  within 


100  CIVIL  CODE.  §  420 

the  scope  of  its  arlicles  of  iiicoriionxtion,  and  may  cause  itself  to 
be  reinsured. 

Enacted  March  21.  1872. 

Funds  may  be  invested,  how.     [Repealed.] 

§  427.     Funds   may   be   invested,    how.      [Kcpealed    March   3, 
and  21,  1905 ;  stats.  1905,  pp.  34  and  628.] 
123  Cal.  203. 

Limit   of  risk. 

§  428.  Fire  and  marine  insurance  corporations  must  never  take, 
on  any  one  risk,  whether  it  is  a  marine  insurance  or  an  insur- 
ance against  fire,  a  sum  exceeding  one  tenth  part  of  their  capital 
actually  paid  in,  and  intact  at  the  time  of  taking  such  risk,  with- 
out at  once  reinsuring  the  excess  above  one  tenth. 

Amended  March  21,  1905 ;  stats.  1905,  p.  570. 

Note. — §  428.  The  change  consists  in  the  insertion  of  the 
words   "at   once"    before   "reinsuring." 

Amounts  to  be  reserved  before  making  dividends. 

§  429.  No  corporation  formed  subsequent  to  April  first, 
eighteen  hundred  and  seventy-eight,  under  the  laws  of  this  state, 
and  transacting  fire,  marine,  inland  navigation  insurance  busi- 
ness, or  insurance  provided  for  by  section  four  hundred  and 
twenty  (420)  of  tliis  code,  except  insurance  of  the  title  to  real 
property,  must  make  any  dividends  except  from  profits  remain- 
ing on  hand  after  retaining  unimpaired  : 

1.  The  entire  subscribed  capital  stock ; 

2.  All  the  premiums  received  or  receivable  on  outstanding 
marine  or  inland  risks,  except  marine  time  risks  ; 

3.  A  fund  equal  to  one  half  of  the  amount  of  all  premiums  on 
all  other  risks  not  terminated  at  the  time  of  making  such  divi- 
dend ; 

4.  A  sum  sufficient  to  pay  all  losses  reported  or  in  course  of 
settlement,  and  all  liabilities  for  expenses  and  taxes. 

Amended  March  5,  1887 ;  stats.  1887,  p.  23. 
In  general.     Declai-ing  dividends:     See  Civ.   ('.   §309;   as   to 
insurance  companies,  see,  also,  §417. 

Reservation  by  companies  with  less  than  $200,000  capital. 

g  430.  No  fire  or  marine  insurance  corporation,  with  a  sub- 
scribed capital  of  less  than  two  hundred  thousand  dollars,  must 


§  430  CIVIL  CODE.  101 

(Icclai'o  any   divitlends,   excei)t    from    profila   reiiuiiiiiug   on   hand 
after  reseniug : 

1.  A  Slim  necessary  (o  fdini,  willi  the  snh.scril)eil  eapilal  stuclc, 
(lie  aggregate  sum  of  two  hundred  thousand  doHais: 

2.  All  the  premiums  received  or  receis'ahle  on  onlstandhit;- 
marine  or  inland  risks,  except  marine  time  risks ; 

3.  A  fund  equal  to  one  half  the  amount  of  all  premiums  on 
fire  risks  and  marine  time  risks  not  terminated  at  the  time  of 
making  such  dividend  ; 

4.  A  sum  sufficient  to  pay  all  losses  reported  or  in  course  of 
settlement,  and  all  liabilities  for  expenses  and  taxes. 

Enacted  jNIarch  21,  1872. 
110  Cal.  4G0. 

Amounts  to  be  reserved  by  life  insurance  companies.     [Repealed.] 
§  431.     Amounts  to  be  reserved  by  life  insurance  companies. 

[Repealed  March  21,  1905;  stats.  1905,  p.  571.] 
See  note  following  §  452. 

Corporations  for  insuring  titles  to  real  estate. 

§  432.  Corporations  transacting  business  in  insuring  titles  to 
real  estate  shall  annually  set  apart  a  sum  equal  to  twenty-five 
per  cent  of  their  premiums  collected  during  the  year,  which  sum 
shall  be  allowed  to  accumulate  until  a  fund  shall  have  been 
created  amounting  to  ten  per  cent  of  the  subscribed  capital  stock. 
Such  fund  sliall  he  maintained  as  a  further  security  to  policy- 
holders, and  shall  be  known  as  the  surplus  fund  ;  and  if  at  any 
time  such  fund  shall  be  impaired  by  reason  of  a  loss,  the  amount 
by  which  it  may  be  impaired  shall  be  restored  in  the  manner 
hereinabove  provided  for  its  accumulation.  The  reporting  of  a 
loss  shall  be  deemed  an  impairment  of  such  fund  for  the  pur- 
poses of  this  section.  Such  corporation  must  not  make  any  divi- 
dends except  from  profits  remaining  on  hand  after  retaining 
unimpaired  : 

1.  The  entire  subscribed  capital  stock; 

2.  The  amount  owing  to  the  surplus  fund,  under  the  pro- 
visions of  this  section  ; 

3.  A  sum  sufficient  to  pay  all  losses  reported,  or  in  course  of 
settlement,  which  shall  be  in  excess  of  the  surplus  fund,  and  all 
liabilities  for  expenses  and  taxes. 

Enacted  March  5,  1887;  stats.  1SS7,  p.  23. 


102  CIVIL  CODE.  §  437 


(UFAPTER  III. 

MUTUAL      LIFE.      HEALTH,     AND     ACCIDENT      INSURANCE 
CORPORATIONS. 

(lusurance  commissioner:  See  Pol.  C.  §588  et  seq.;  mutual 
fire  iu.surance:  See  "Insurance,"  statutes  at  large,  Appendix.) 

Sec.  437.  Capital  stock.     Guarantee  fund. 

438.  Of    what    guarantee    fund    shall    consist. 

439.  What   constitutes,    and   deficiency    in    fixed    capital. 

440.  Declaration  of  fixed  capital  to  be  filed. 

441.  Guarantee    notes    and    interest,    how    disposed    of. 
4  4  2.  Insured  to  be  entitled  to  vote,  when. 

443.  Number  of   directors  may  be  altered,    how. 

444.  Investment     of     capital     stock,     in     what     securities. 

[Repealed.] 
44  5.     Limitations    to    the    holding    of    stock    and    in    other 
particulars   may   be   provided   for   in   by-laws. 

446.  Premiums,   how   payable. 

447.  Insurance    corporations   to    furnish   data   to   insurance 

commissioner.    Employment  of  actuary.     [  Repealed.  ] 

448.  No    stamp    required   on    accident    insurance    contracts. 

[Repealed.] 

4  4  9.  Valuation  of  policies.  Retaliatory  provisions.  [Re- 
pealed.] 

450.     Policy  to  contain  what  provisions. 

4  51.  Fraternal  societies  exempt  from  insurance  laws. 
[Repealed.] 

452.     Dividends,  how  and  when  made. 

Capital  stock — Guarantee  fund. 

§  437.  Every  corporation  formed  for  the  purpose  of  mutual 
insurance  on  the  lives  or  health  of  persons,  or  against  accideuls 
to  persons  for  life  or  any  fixed  period  of  time,  or  to  purchase 
and  sell  annuities,  must  have  a  capital  stock  of  not  less  than 
two  hundred  thou.saud  dollars.  It  must  not  make  any  insurance 
upon  any  risk  or  transact  any  other  business  as  a  corporation 
until  its  capital  stock  is  fully  paid  up  in  cash,  nor  until  it  has 
also  obtained  a  fund,  to  be  known  as  a  "guarantee  fund,"  of 
not  less  than  two  hundred  and  fifty  thousand  dollars,  as  is  here- 
inafter provided.  If  more  than  the  requisite  amount  is  sub- 
scribed, the  stock  must  be  distributed  pro  rata  among  the 
subscribers.     Any  subscription  may  be  I'cjected  by  the  board  of 


§  437  CIVIL  CODE.  103 

directors  or  the  committee  thereof,  either  as  to  the  whole  or  any 
part  thereof,   and  must  be,   so   far  as   rejected,   without   effect, 
nothing  in  tliis  section  shall  be  deemed  to  contravene  any  of  the 
provisions  of  section  four  hundred  and  fifty-one. 
Amended  March  18,  1005;  stats.  1905,  p.  183. 
121  Cal.  320. 

Of  what  guarantee  fund  shall  consist. 

§  438.  The  guarantee  fund  mentioued  in  the  preceding  sec- 
tion must  consist  of  the  promissory  notes  of  solvent  parties, 
approved  by  the  board  of  directors  and  by  each  other,  payable 
to  the  corporation  or  its  order,  and  at  such  times,  in  such  modes, 
and  in  such  sums,  with  or  without  interest,  and  conformable 
in  all  other  respects  to  such  requirements,  as  the  board  of  direct- 
ors prescribe  ;  but  the  amount  of  the  notes  given  by  any  one 
person  must  not  exceed  in  the  whole  the  sum  of  five  tliousand 
dollars,  exclusive  of  interest.  Such  notes  must  be  payable  abso- 
lutely and  at  the  option  of  the  corporation ;  they  must  be 
negotiable,  and  may  be  indorsed  and  transferred,  or  converted 
into  cash,  or  otherwise  dealt  with  by  the  corporation,  at  its 
discretion,  without  reference  to  any  contingency  of  losses  or 
expenses.  Such  notes,  or  the  proceeds  thereof,  must  remain 
with  tlie  corporation  as  a  fund  for  the  better  security  of  persons 
dealing  with  it,  and  constitute  the  assets  of  the  corporation,  liable 
for  all  its  debts,  obligations,  and  indebtedness  nest  after  its 
assets  from  premiums  and  other  sources,  exclusive  of  capital 
stock,  until  the  net  earnings,  over  and  above  its  expenses,  losses, 
:iud  liabilities,  shall  have  accumulated  in  cash,  or  securities  in 
which  the  net  earnings  have  been  invested,  to  a  sum  which,  with 
the  capital  stock,  is  equal  to  the  aggregate  of  the  original 
amounts  of  the  guarantee  fund  and  of  the  capital  stock. 

Enacted  March  21,  1872. 

What  constitutes,  and  deficiency   in  fixed  capital. 

§  439.  The  sum  accumulated  as  provided  in  the  preceding 
section,  together  with  the  capital  stock,  shall  become  and  remain 
the  fixed  capital  of  the  corporation,  not  subject  to  division  among 
the  stockholders  or  parties  dealing  with  it,  or  to  be  expended 
in  any  manner  otherwise  than  may  be  required  in  payment  of 
the  corporation's  debts  and  actual  expenses,  until  the  business 
of  the  corporation  is  closed,  its  debts  paid,  and  its  outstanding 


104  CIVIL   CODE.  §  430 

policies  ami  obligations  of  every  kind  canceled  or  provided  for ; 
and  if  from  any  cause  a  deficiency  at  any  time  occurs  in  such 
fixed  capital,  no  further  division  of  profits  must  take  place  until 
such  deficiency  has  been  made  up. 
Enacted  March  21,  1872. 

Declaration  of  fixed  capital  to  be  filed. 

S  440.  Whenever  the  fixed  capital  of  the  corporation  is 
obtained  as  hereinbefore  provided,  the  president  of  the  corpora- 
tion and  its  actuary,  or  its  secretary  if  there  is  no  actuary, 
must  make  a  declaration  in  writing,  sworn  to  before  some 
notary  public,  of  the  amount  of  such  fixed  capital,  and  of  the 
jiarticular  kinds  of  property  composing  the  same,  with  the 
nature  and  amount  of  each  kind,  which  must  be  filed  with  the 
original  articles  of  incorporation,  and  a  copy,  certified  by  the 
county  clerk,  must  be  published  for  at  least  four  successive 
weeks,  in  a  newspaper  published  in  the  county  where  the  prin- 
cipal business  of  the  corporation  is  situated.  Upon  the  filing 
of  such  declaration  the  guarantee  fund  is  discharged  of  its  obliga- 
tions, and  all  notes  of  the  fund  remaining  in  the  control  of  the 
corporation,  and  not  affected  by  any  lien  thereon,  or  claim  of 
that  nature,  must  be  surrendered  by  it  to  the  makers  thereof, 
respectively,  or  other  parties  entitled  to  receive  the  same. 

Enacted  March  21,  1872. 

Guarantee   notes  and   interest,   how  disposed  of. 

§441.  Until  the  guarantee  fund  is  discharged  rioin  lis  obliga- 
fions,  as  provided  in  (he  -preceding  section,  no  note  must  be  with- 
drawn from  the  fund  unless  another  note  of  e(iual  solvency  is 
substituted  therefor,  with  the  ap])roval  of  the  board  of  directors. 
The  corporation  must  allow  a  commission,  not  exceeding  five 
per  cent  per  annum,  on  all  such  guarantee  notes  while  outstand- 
ing, and  also  interest  on  all  moneys  paid  on  such  notes  by  the 
l)arties  liable  thereon,  at  the  rate  of  twelve  per  cent  per  annum, 
payable  half-yearly  until  repaid  by  the  corporation,  unless  the 
current  rate  of  interest  is  different  from  this  amount,  in  which 
ca.se  the  rate  payable  may,  from  time  to  time,  at  intervals  of 
not  less  than  one  year,  be  increased  or  reduced  by  tln^  bnjird  of 
directors,  so  as  to  conform  to  the  cnrr(Mit  rate. 

Anioiidcd   .March  .30,  1874;   ninendls.   1873-4,  p.   210. 


§  442  CIVIL  CODE.  105 

Insured   to   be  entitled  to   vote,   when. 

§  442.  After  the  tiling  of  the  declaration  of  the  Hxed  capital, 
as  in  this  article  provided,  the  holders  of  policies  of  life  insur- 
ance for  the  term  of  life,  on  which  the  premiums  are  not  in 
default,  may  vote  at  the  election  of  directors,  and  have  one  vote 
for  each  one  thousand  dollars  insured  bj'  their  policies,  respec- 
tively. 

Enacted  March  21,  1872. 

Number  of  directors  may  be  altered,  how. 

§  443.  The  number  of  directors  specified  in  the  articles  of 
incorporation  may  be  altered  from  time  to  time  during  the  exist- 
ence of  the  corporation  by  resolution,  at  the  annual  meeting  of 
a  majority  of  those  entitled  to  vote  at  tlie  election  of  directors, 
but  the  number  must  never  be  reduced  below  five. 

Enacted  March  21,  1872. 

Investment  of  capital   stock,    in   what   securities.      [Repealed.] 

§444.  Investment  of  capital  stock,  in  what  securities.  [Re- 
pealed March  22,  1907;  stats.  1907,  p.  889.] 

Limitations  to  the  holding  of  stock  and  in  other  particulars  may 
be  provided  for  in  by-laws. 

§  445.  The  corporation  may,  by  its  by-laws,  limit  the  num- 
ber of  shares  which  may  be  held  by  any  one  person,  and  make 
such  other  provisions  for  the  protection  of  the  stockholders  and 
the  better  security  of  those  dealing  with  it  as  to  a  majority  of 
the  stockholders  may  seem  proper,  not  inconsistent  with  the  ])ro- 
visions  of  this  title  or  part. 

]<:nacted  xMarch  21,  1872. 

Premiums,  how  payable. 

§  446.  All  premiums  must  be  payable  wholly  in  cash,  or  one 
half  or  a  greater  proportion  in  cash,  and  the  remainder  in 
promissory  notes  bearing  interest,  as  may  be  provided  for  by 
the  by-laws.  Agreements  and  policies  of  insurance  made  by  the 
corporation  may  be  upon  the  basis  of  full  or  partial  participation 
in  the  protits,  or  without  any  participation  therein,  as  may  be 
provided  by  the  by-laws  and  agreed  between  the  parties.    ■ 

Enacted  March  21,  1872. 

Insurance    corporations    to    furnish    data    to    insurance    commis- 
sioner—  Employment   of   actuary.      [Repealed.] 
§  447.      Insurauco   corporations    to   furnish   data    to    insurance 


106  CIVIL  CODE.  §  447 

oominissiouer.     Employmeut    of   actuary.     [Repealed   March   S, 
1907;  stats.  1907,  p.  141.] 

No  stamp  required  on  accident  insurance  contracts.     [Repealed.] 
§  448.     No   stamp   required   ou   accident   Insurance   contracts. 
[Repealed    March    21,    1905;    stats.    1905,    p.    571;     repealed 
March  8,  1907;  stats.  1907,  p.  141.] 

Note. — §  448.  This  section  exempted  accident  insurance  com- 
panies from  stamp  duties,  but  as  there  are  no  such  duties  under 
the  law  as  it  now  stands,  the  section  was  unnecessary. 

Valuation   of   policies — Retaliatory   provisions.     [Repealed.] 

§449.  Valuation  of  policies.  Retaliatory  provisions.  [Re- 
pealed March  8,  1907;  stats.  1907,  p.  141.] 

Policy  to  contain  what  provisions. 

§  450.  Every  contract  or  policy  of  insurance  hereafter  made 
by  any  person  or  corporation  organized  under  the  laws  of  this 
state,  or  under  those  of  any  other  state  or  country,  with  and 
upon  the  life  of  a  resident  of  this  state,  and  delivered  within 
this  state,  shall  contain,  unless  specifically  contracted  between 
the  insurer  and  the  insured  for  tontine  insurance,  or  for  other 
term  or  paid-up  insurance,  a  stipulation  that  when,  after  three 
full  annual  premiums  shall  have  been  paid  on  such  policy,  it 
shall  cease  or  become  void  solely  by  the  non-payment  of  any 
premium  when  due,  its  entire  net  reserve,  by  the  American 
Experience  Mortality,  and  interest  at  four  and  one  half  per  cent 
yearly,  less  any  indebtedness  to  the  company  on  such  policy, 
shall  be  applied  by  such  company  as  a  single  premium,  at  such 
company's  published  rates  in  force  at  the  date  of  original  policy, 
but  at  the  age  of  the  insured  at  time  of  lapse,  either  to  the 
purchase  of  non-participating  term  insurance  for  the  full  amount 
insured  by  such  policy,  or  upon  the  written  application  by  the 
owner  of  such  policy,  and  the  surrender  thereof  to  such  Com- 
pany within  three  months  from  such  non-payment  of  premium, 
to  the  purchase  of  a  non-participating  paid-up  policy,  payable 
at  the  time  the  original  policy  would  be  payable  if  continued 
in  force  ;  both  kinds  of  insurance  to  be  subject  to  the  same  con- 
ditions, except  as  to  payment  of  premiums,  as  those  of  the 
original  policy.  It  may  be  provided,  however,  in  such  stipula- 
tion, that  no  part  of  such  term  insurance  shall  be  due  or  pay- 
able,  unless  satisfactory   proofs   of  death   be   furnished   to   the 


§  450  CIVIL  CODE.  107 

iusuring  compauy  within  one  year  after  death,  aud  that  if  death 
shall  occur  withiii  three  years  after  such  nou-payment  of  pre- 
mium, and  during  such  term  of  insurance,  there  shall  be  deducted 
from  the  amount  payable  the  sum  of  all  the  premiums  that 
would  have  become  due  on  the  original  policy  if  it  had  continued 
in  force.  If  the  reserve  on  endowment  policies  be  more  than 
enough  to  purchase  temporary  insurance,  as  aforesaid,  to  the 
end  of  the  endowment  term,  the  excess  shall  be  applied  to  tho 
purchase  of  pure  endowment  insurance,  payable  at  the  end  of 
the  term,  if  the  insured  be  then  living.  If  any  life  insurance 
corporation  or  company  shall  deliver  to  any  person  in  this  state, 
a  policy  of  insurance  upon  the  life  of  any  person  residing  in  this 
state,  not  in  conformity  with  the  provisions  of  this  section,  the 
right  of  such  corporation  or  company  to  transact  business  in 
this  state  shall  thereupon  and  thereby  cease  and  terminate,  and 
the  insurance  commissioner  shall  immediately  revoke  the  certifi- 
cate of  such  corporation  or  company  authorizing  it  to  do  business 
in  this  state,  and  publish  such  revocation,  daily,  for  the  period 
of  two  weeks,  in  two  daily  newspapers,  one  published  in  the  city 
of  San  Francisco  and  the  other  in  the  city  of  Sacramento. 
Amended  April  26,  1880 ;  ameudts.  1880,  p.  91. 
123  Cal.  679 ;  129  Cal.  459 ;  139  Cal.  335. 

Fraternal  societies  exempt  from   insurance  laws.     [Repealed.] 

§  451.     Fraternal  societies  exempt  from  insurance  laws.      [Re- 
pealed March  8,  1907;  stats.  1907,  p.  141.1 
See  Pol.  C.  §  630. 
148  Cal.  478. 

Dividends,   how  and   when   made. 

§  452.  No  corporation  formed  under  the  laws  of  this  state, 
and  transacting  life  insurance  business,  must  make  any  divi- 
dends, except  from  profits  remaining  on  hand  after  retaining 
unimpaired : 

1.  The  entire  capital  stock  ; 

2.  A  sum  sufiicient  to  pay  all  losses  reported  or  in  course  of 
settlement,  and  all  liabilities  for  expenses  and  taxes ; 

3.  A  sum  sufficient  to  reinsure  all  outstanding  policies,  as 
ascei'tained  and  determined  upon  the  basis  of  the  American  Ex- 


K*'^  CIVIL   CODE.  S  4^)2 

perieuce  Table  of  Mortality,  aud  interest  at  Ihe  rate  of  four  and 
one  half  per  cent  per  annnm. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  571. 

Note. — §§  431,  452.  Old  section  431,  which  dealt  with  the 
amounts  to  be  received  by  life  insurance  companies,  was  in  a 
chapter  entitled,  "Fire,  marine  and  title  insurance  corporations." 
It  is  transferred  to  a  more  appropriate  chapter,  and  numbered 
452. 


CHAPTER  IV. 

[Chapter  IV  added  March  20,  1905  ;  stats.  1005,  ]>.   Ill] 

MUTUAL    BENEFIT    AND    LIFE    ASSOCIATIONS. 

(Mutual  fire  insurance  companies:  See  "Insurance,"  statutes 
at  large,  Appendix.) 

Sec.  452a.  Formation  of  tlie  association. 

453.     Levying  of  assessments.     By-laws  which  may  be  made. 

Formation  of  the  association. 

§  452a.  Associations  of  not  exceeding  one  thousand  persons 
may  be  formed  for  the  purpose  of  paying  to  the  nominee  of  any 
nieml)er  a  sum,  upon  the  death  of  the  member,  not  exceeding 
three  dollars  for  each  member  of  the  association.  Such  asso- 
ciation may  be  formed  by  filing  articles  of  incorporation  in  the 
office  of  the  clerk  of  the  county  in  which  the  principal  place  of 
business  is  situated  and  a  certified  copy  of  such  articles  of  incor- 
poration, duly  certified  by  the  county  clerk,  in  the  office  of  the 
secretary  of  state.  Such  articles  must  state  tJie  name  of  the 
corporation,  its  general  purposes,  its  principal  place  of  business, 
its  term  of  existence,  not  exceeding  fifty  years,  tlie  names  and 
residences  of  the  directors  selected  or  appointed  to  serve  for  the 
first  year,  and  must  be  signed  and  verified  as  required  by  sections 
two  hundred  and  ninety-two  and  five  hundred  and  ninety-four. 

Enacted  March  20,  1905 ;  stats.  1905,  p.  411. 

Note. — §§  452a,  453.  The  statute  of  1873-4,  page  745,  as 
amended  by  the  statutes  of  1880,  page  25,  and  1901,  page  6, 
relating  to  mutual  benefit  associations,  is  codified  in  tlie  above 
sections,  and  a  new  cliapter,  entitled  "Mutual  lieneflt  and  life 
associations,"    is    added,    to    consist    of    sections    452a    and    453. 


§453  CIVIL  CODK.  100 

Levying  of  assessments — By- laws  which   may   be   made. 

§  453.  Each  association  provided  for  in  this  chapter  may,  on 
the  death  of  a  member,  levy  an  assessment  on  the  surviving 
members  of  not  exceeding  three  dollars  for  each  member,  and  col- 
lect and  pay  the  same  to  the  nominee  of  such  decedent,  and  may 
also  provide  for  the  payment  of  such  annual  payments  by  mem- 
bers as  may  be  deemed  just,  but  no  member  must  be  subject  to 
any  annual  assessment  in  excess  of  that  established  when  he 
joined  the  association.  The  association  may  make  such  by-laws 
not  inconsistent  with  the  laws  of  the  state  as  may  be  necessary 
for  its  government  and  the  transaction  of  its  business  ;  may,  by 
ils  name,  sue  and  be  sued;  loan  such  funds  as  it  may  have  on 
hand;  and  own  sufficient  real  estate  for  its  business  purposes 
and  such  as  it  may  be  necessary  to  purchase  on  foreclosure  of 
its  mortgages. 

Enacted  March  20,  1905  ;  stats.  1905,  p.  411. 

NOTK. — See  note  to  §  452a. 


CHAPTER  V. 

[Chapter  V  added  March   21.   1905;  stats.    1905,   p.    571.] 

CORPORATIONS  TO  DISCOVER  FIRE  AND  SAVE  PROPERTY 
AND   HUMAN    LIFE    FROM    DESTRUCTION   THEREBY. 

Si5C.  453«.  Powers  of  the  corporation. 

453&.   Right    of    way    of    corporation    and    its    oftitors    when 

running  to  fires. 
453c.   Yearly    meeting    of    corporation,    notice    to    be    given 

thereof,   and  proceedings  which   may   be  authorisced 

thereat. 

Powers  of  the  corporation. 

§  453«.  Any  corporation  of  underwriters  heretofore  organ- 
ized and  now  existing,  or  which  may  be  hereafter  organized 
under  the  laws  of  this  state,  for  the  purpose  of  discovering  and 
preventing  fires  and  of  saving  property  and  human  life  from 
conflagration,  and  doing  business  within  any  municipal  cor- 
poration of  this  state,  has  power,  at  its  own  proper  cost  and 
expense,  to  maintain  a  corps  of  men,  with  proper  ofiicers, 
equipped  with  the  necessary  machinery  and  apparatus  therefor, 
whose  duty  it  is,  so  far  as  practicnblc,  to  discover  and  prevent 


110  CIVIL  CODE.  §  453a 

tiles  and  save  property  aud  humau  life  trom  contlagratiou  ;  and 
for  the  effective  discharge  of  such  duties,  authority  is  hereby 
granted  such  corps  to  enter  any  building  on  fire,  or  in  which 
property  is  on  fire,  or  which  such  corps  or  any  ofiicer  thereof 
deems  to  be  immediately  exposed  to  any  existing  fire,  or  in 
danger  of  taking  fire  from  a  bui-ning  building,  and  to  remove  or 
otherwise  save  and  protect  from  conflagration  or  damage  by 
water  any  property,  during  and  immediately  after  such  fire. 
Nothing  in  this  chapter  must  be  so  construed  as  in  any  degi'ee 
to  lessen,  impair,  or  interfere  with  the  powers,  privileges,  duties, 
or  authority  of  the  regular  fire  department  of  such  municipality  ; 
nor  can  any  act  of  such  corps  justify  any  owner  of  any  build- 
ing or  property  in  abandoning  such  building  or  property. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  571. 

Note.— §§  453a,  453i>,  453c.  The  statute  of  1875-6,  page  689, 
concerning  the  powers  of  underwriters,  as  amended  by  the 
statute  of  1897,  page  223,  is  codified  in  the  sections  above  named, 
a  new  chapter  being  added,  entitled  "Corporations  to  discover 
fire,  and  to  save  property  and  human  life  from  destruction 
thereby,"  to  consist  of  sections  453o,  453&,  and  453c. 

Right  of  way  of  corporation  and  its  officers  when  running  to 
fires. 
§  4536.  Such  corporation,  witli  its  officers  aud  cotps,  when 
running  to  a  fire  with  its  horses,  vehicles,  and  salvage  appa- 
I'atus,  has  the  same  right  of  way  as  is  or  may  be  bestowed  by 
any  ordinance  of  the  municipality  or  law  of  this  state  upon 
the  regular  fire  department  of  the  municipality  wherein  such 
corporation  is  acting ;  but  the  rights  of  such  fire  department 
must  always  be  paramount  to  the  rights  of  such  corporation. 
All  ordinances  now  existing  or  which  may  hereafter  be  passed 
by  the  municipal  authorities  of  any  city  and  county,  or  of  any 
incorporated  city  or  town  wherein  such  a  corporation  may  carry 
on  business,  and  all  laws  of  this  state  applicable  to  such  city 
and  county,  or  city  or  town,  for  the  conviction  or  punishment  of 
any  person  or  persons  willfully  or  carelessly  obstructing  the 
progress  of  the  apparatus  of  the  fire  department  of  such  city 
and  county,  or  city  or  town,  while  going  to  a  fire,  or  of  any 
person  or  persons  willfully  or  carelessly  injuring  any  animal 
or  property  of  said  fire  department,  are  equally  applicable  to  any 
[HM'son  or  persons  willfully  or  carelessly  obstructing  the  progress 


§  4536  CIVIL  CODE.  Ill 

of  the  apparatus  of  such  corporation  while  going  to  a  tire,  and 
to  any  person  or  persons  who  willfully  or  carelessly  injures  any 
animal  or  property  of  such  corporation  ;  and  said  laws  and  ordi- 
nances, and  their  penalties,  may  be  enforced  in  the  same  courts 
and  in  the  same  manner,  and  with  equal  force  and  effect,  as  in 
(he  case  of  the  fire  department. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  572. 

Note. — Sec  note  to  §  4  53fl. 

Yearly  meeting  of  corporation,  notice  to  be  given  thereof,  and 
proceedings  which  may  be  authorized  thereat. 
S  453c.  In  the  month  of  July,  in  every  year,  there  must  be 
held  a  meeting  of  all  corporations  created  for  the  purposes 
specified  in  this  chapter;  of  which  ten  days'  previous  notice 
must  be  inserted  in  at  least  one  daily  newspaper  published  in 
the  municipality  where  said  corporation  is  organized  or  estab- 
lished, at  which  meeting  each  insurance  company,  corporation, 
association,  underwriter,  agent,  person,  or  persons  doing  a  fire 
insurance  business  in  said  municipality,  whether  members  of 
said  corporation  or  not,  shall  have  a  right  to  be  represented, 
and  shall  be  entitled  to  one  vote.  A  majority  of  the  whole  num- 
ber so  represented  has  power  to  decide  upon  the  question  of 
sustaining  the  fire  patrol  organized  by  corporations  heretofore 
created,  or  that  may  be  hereafter  created,  and  fixing  the  max- 
imum amount  of  expenses  which  may  be  incurred  therefor 
during  the  fiscal  year  next  to  ensue,  which  amount  must  in  no 
case  exceed  two  per  centum  of  the  aggregate  premiums  returned 
as  received,  as  provided  in  this  section,  and  the  whole  of  such 
amount,  or  so  much  thereof  as  may  be  necessary,  may  be 
assessed  upon  all  insurance  companies.  coii:)orations,  associa- 
tions, underwriters,  agents,  person,  or  persons  who  assume  risks 
and  accept  premiums  for  fire  insurance  in  said  municipality, 
as  hereinbefore  mentioned,  in  proportion  to  the  several  amounts 
of  premiums  returned,  as  received  by  each,  as  hereinafter  pro- 
vided, and  such  assessment  is  collectible  by  and  in  the  name 
of  said  corporation,  in  any  court  of  law  in  the  State  of  Cali- 
fornia having  jurisdiction,  in  such  manner  and  at  such  time 
or  times  as  said  corporation  may  determine.  In  order  to  pro- 
vide for  the  payment  of  persons  employed  by  said  corporation, 
and  to  maintain  suitable  rooms,  and  apparatus  for  saving  life 
and  property  contemplated,  said  corporation   is  empowered   to 


112  civiT.  CODE.  §  453c 

veqiiire  a  stutemeut  to  be  fiii-oishetl,  .seuii-amuially,  by  all  iiisur- 
auce  companies,  corporatious,  associations,  imderwriters,  agents, 
or  persons,  of  the  aggregate  amount  of  premiums  received  for 
insuring  property  in  the  municipality  whei'e  said  corpoi'atiou 
is  organized  or  established,  for  and  during  the  six  months  next 
preceding  the  first  day  of  July  and  the  first  day  of  January  of 
each  year,  which  statement  must  be  sworn  to  by  the  president 
or  secretary  of  the  corporation  or  association,  or  by  the  agent 
or  person  so  acting  or  effecting  such  insurance  in  said  munici- 
pality, and  must  be  handed  to  the  secretary  of  said  corpora- 
lion  heretofore  created  or  hereafter  to  be  created  under  the  pro- 
visions of  this  chapter  within  ten  days  after  the  first  day  of 
July  and  the  first  day  of  January  of  each  year.  Said  secre- 
tary must,  within  the  ten  days  aforesaid,  by  written  or  printed 
demand  signed  by  him,  require  from  every  insurance  company, 
corporation,  iissociatiou,  underwriter,  agent,  or  person  engaged 
in  the  business  of  fire  insurance  in  the  municipality  where  said 
corporation  is  organized  or  established,  the  statement  herein- 
before provided  for.  Such  demand  may  be  delivered  personally 
at  the  oflice  of  such  insurance  company,  corporation,  association, 
underwriter,  agent,  or  person  within  said  municipality,  and 
every  officer  of  such  insurance  company,  corporation,  associa- 
tion, and  every  such  underwriter,  agent,  or  person  who,  for 
fifteen  days  after  said  demand,  neglects  to  render  the  statement 
lierein  provided  for,  forfeits  fifty  dollars  for  the  use  of  said 
corporation,  and  also  forfeits  for  its  use  twenty-five  dollars  in 
addition  for  every  day  he  so  neglects  after  the  expiration  of  the 
said  fifteen  days,  and  such  additional  penalty  may  be  computed 
and  collected  up  to  the  time  of  the  trial  of  any  action  brought 
for  the  recovery  thereof.  The  penalty  herein  provided  for  may 
be  sued  for  and  collected,  with  costs,  in  any  court  of  law  within 
the  State  of  California  having  jurisdiction,  by  and  in  the  name 
of  said  corporation. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  572. 

Note. — See  note  to  §  453a. 


§  453(/  CIVIL  CODE.  113 

CHAPTER  VI. 

[Chapter  VI  added  March  20,   1905;  stats.   1905,  p.   118.] 

LIFE,    HEALTH,    ACCIDENT,    AND    ANNUITY    OR    ENDOW- 
MENT  INSURANCE  ON  THE  ASSESSMENT  PLAN. 

(Insurance  of  live  stock  on  assessment  plan:  See  "Insur- 
ance," statutes  at  large,  Appendix.) 

Sec.  453d.     Contracts  which  may  be  made  by,  defined. 

453e.  Fornnation  of  corporations;  issuing  of  contracts; 
investments. 

4  58f      Pre-existing  coi'poration.s,  right  of  to  reincorporate. 

453£f.     Contracts  of  insurance,  contents  and  effect  of. 

453ft.     Reserve  and  emergency  fund. 

453J.  Foreign  corporations,  conditions  precedent  to  doing 
bvisiness  in  tliis  state. 

4  53j.      Limitations  upon  riglit  to  issue  contracts  of  insurance. 

453fc.     Exemptions  from  attaeliment  and  execution. 

453/.  Statements  to  be  filed  witli  tlie  insurance  commis- 
sioner ;  proceedings  to  be  talcen  by  liim  thereon. 

453m.    Lapsing  of  policies,  when  forbidden. 

453i!.     Fees  and  penalties. 

453o.  Insurance  commissioner  to  present  l)il!s  for  certain 
expenses. 

453p.      Exemption  of  fraternal  societies  from  tliis  cliapter. 

Contracts  which  may  be  made  by,  defined. 

S  453r/.  Every  contract  whereby  a  benefit  may  accrue  to  a 
j)arty  or  parties  therein  named  upon  the  deatii  or  physical  dis' 
ability  of  a  person  insured  thereunder,  or  for  the  payment  of 
any  sums  of  money  dependent  in  any  degree  upon  the  collection 
of  assessments  or  dues  from  persons  holding  similar  contracts. 
is  deemed  a  contract  of  mutual  insurance  upon  the  assessment 
l)]an.  Such  contracts  must  show  that  the  liabilities  of  the 
insured  thereunder  are  not  limited  to  fixed  premiums. 

Enacted  March  20,  1905 ;  stats.  1905,  p.  418. 

Note.— §§  453d,  453e,  453f,  453(7,  453ft,  453J,  453^,  453fc,  453/. 
153)n,  453»!,  453o,  453p.  These  sections  are  a  codification  of  the 
statute  of  1891,  page  126,  relating  to  life,  health,  accident,  and 
.innuity  or  endowment  insurance  on  tlie  assessment  plan.  They 
:ne  placed  in  a  new  chapter,  entitled  "Life,  health,  accident  and 
aiuiuily  or  endowment  insurance  on  the  assessment  plan." 

See  I'ol.  C.  §  G34a. 


11-1  CIVIL  CODE.  453e 

Formation  of  corporations;  issuing  of  contracts;  investments. 

§  453c.  Corporations  may  be  formed  to  carry  on  the  business 
of  mutual  insurance  upon  the  assessment  plan,  and  are  subject 
only  to  the  provisions  of  this  chapter.  No  such  corporation 
must  issue  contracts  of  insurance  until  at  least  two  hundred 
l>ersous  have  applied,  in  writing,  for  membership  or  insurance 
therein,  and  have  paid  to  the  treasurer  of  such  corporation  the 
sum  of  five  thousand  dollars.  This  sum  must  be  invested  in 
bonds  or  securities,  approved  by  the  insurance  commissioner  of 
this  state,  or  deposited  in  some  bank  in  this  state  where  it  will 
earn  interest.  Said  bonds  or  securities  or  evidences  of  such 
deposit,  must  be  placed,  through  the  insurance  commissioner  of 
this  state,  with  the  state  treasurer,  and  the  principal  sum  must 
be  held  in  trust  for  the  contract  holders  of  such  corporation, 
with  the  right  in  the  corporation  to  exchange  said  bonds,  securi- 
ties, or  evidence  of  bank  deposit  for  others  of  like  value.  Such 
corporation  must  also,  as  a  condition  precedent  to  issuing  any 
contracts  of  insurance,  obtain  the  written  certificate  of  the  insur- 
ance commissioner  that  it  has  complied  with  the  requirements  of 
this  chapter ;  and  that  the  name  of  the  corporation  is  not  the 
same  as  that  of  any  other  corporation  of  this  or  other  states,  as 
indicated  by  the  insurance  department  reports  in  his  office ; 
nor  must  the  commissioner  approve  any  name  or  title  so  closely 
resembling  another  as  to  mislead  the  public.  No  corporation 
formed  hereunder  has  legal  existence  after  one  year  from  the 
date  of  its  articles,  unless  its  organization  has  been  completed 
and  business  commenced  ;  nor  must  any  corporation  or  individual 
solicit,  or  cause  to  be  solicited,  any  business,  until  such  corpora- 
tion has  conii)lied  with  the  provisions  of  secCion  six  hundred  and 
thirty-three  of  the  Political  Code.  Nothing  contained  in  this 
chapter  shall  be  construed  to  exempt  any  corporation  from  the 
provisions  of  sections  two  hundred  and  ninety-six  and  two  hun- 
dred and  ninety-nine  of  this  code. 

Enacted  March  20,  1905;  stats.  1905,  p.  418. 

Note. — See  note  to  §  453d. 

Pre-existing  corporations,  rigint  of  to  reincorporate. 

§  453f.  Any  existing  corporation  engaged  in  the  business  of 
life,  health,  accident,  or  endowment  insurance  on  (he  assessment 
l>laTi  may  reincorporate  under  the  i)rovisions  of  this  code  and 
chapter,  but  is  not  obliged  to  do  so.  and  may,  without  such  rein- 


§  453/  civil.  CODE.  .         115 

corporation,  exercise  the  rights,  powers,  and  privileges  conferred 
l)y  this  chapter. 

Enacted  March  20,  1905;  stnls.  1!H)5,  p.  41!). 

Note. — See  note  to  §  45.3rf. 
Contracts  of  insurance,  contents  and  effect  of. 

§  453^7.  Every  contract  of  insurance  issued  by  sucli  corpo- 
ration must  specify  the  sum  or  sums  to  be  paid  upon  the  hap- 
pening of  the  contingency  insured  against,  and  when  sucli 
payments  must  be  made.  Unless  the  contract  is  invalidated  by 
fraud  or  by  breach  of  its  conditions,  the  corporation  is  obligated 
to  pay  the  beneficiary  the  amount  or  amounts  specified  in  its 
contract  at  the  time  or  times  therein  named,  and  such  indebted- 
ness is  a  lien  upon  all  the  property  of  such  corporation,  with 
l)riority  over  all  indebtedness  thereafter  incurred,  except  as  here- 
inafter provided  in  case  of  insolvency.  Failure  to  make  such 
payment,  within  thirty  days  after  notice,  at  the  home  oflice,  by 
mail,  as  provided  by  law,  of  a  final  judgment,  unless  waiver  is 
made  by  the  beneficiary,  constitutes  a  forfeiture  of  the  right  to 
do  business. 

Enacted  March  20,  1905;  stats.  1905,  p.  419. 

Note.- — See  note  to  §  i52(l. 

Reserve  and  emergency  fund. 

§  453/i.  Every  domestic  corporation,  organized  to  do  or  doing 
the  business  of  insurance  on  the  assessment  plan,  must  accumu- 
late a  reserve  or  emergency  fund,  which  must,  at  all  times,  be 
not  less  than  the  largest  benefit  contracted  to  be  paid  by  it  to 
any  one  person.  Every  corporation  organized  under  the  provi- 
sions of  this  chapter  must  accumulate  such  fund  within  a  year 
from  the  date  of  its  certificate  of  incorporation.  Such  fund, 
to  the  extent  of  the  largest  amount  contracted  to  be  paid  by  any 
such  corporation  to  any  one  person,  must  be  invested  and 
deposited,  as  provided  in  section  four  hundred  and  fifty-three  c. 
with  the  right  in  the  corporation  to  exchange  any  such  securities 
for  others  of  equal  value.  The  deposit  required  by  section  four 
luindred  and  fifty-three  e  constitutes  a  part  of  the  reserve 
required  by  this  section,  at  the  option  of  such  corporation. 
When  any  such  corporation  discontinues  business,  this  fund 
must  be  returned  to  such  corporation,  or  disposed  of  as  may  be 
determined  by  the  superior  court  of  llie  county  in  which  is  its 
principal  place  of  business. 

Enacted  March  20,  1905;  stats.  1905,  p.  419. 

Note. — See  note  to  §  453d. 


lit!  oivii,  coDK.  §  453i 

Foi-eign  corporations,  conditions  pt-ecedent  to  doing  business  in 
this  state.  > 

§  453i.  (^'oiporatious  organ i/.otl  uiulor  tlio  laws  of  any  otliei- 
slate  or  eouutry  to  transact  tho  Imsiuoss  of  nuitnal  assos.sinenl 
iusurauce  must,  as  a  couditiou  pvocvdeul  lo  tiausaotiug  business 
iu  this  state,  comply  with  the  provisions  o(  sections  four  hundred 
and  live  and  four  hundred  and  eight  of  this  code,  and  deposit 
with  the  insurance  commissioner  of  this  state  a  certified  copy 
of  its  charter  or  other  instrument  required  by  its  home  author- 
ities :  a  statement  under  oath,  of  its  president  or  secretary,  of  its 
business  for  the  xu'eoeding  year,  iu  such  form  as  may  be  reqviired 
by  the  insurance  commissioner  of  this  state :  an  appointment  of 
a  general  agent,  service  upon  whom  binds  the  corporation ;  a 
cerriticate  that  for  the  next  pi'ecediug  twelve  months  it  has  paid 
in  full  the  maximum  amount  named  in  its  contract  of  insurance  : 
a  c-ertiticate  from  the  proper  officer  of  its  state  or  government 
that  like  corporations  of  this  state  are  legally  entitled  to  do  busi- 
ness iu  such  srate  or  country  ;  copies  of  its  contracts  of  insur- 
ance and  applications,  which  must  show  that  the  liabilities  of 
its  members  are  not  limited  to  fixed  premiums ;  and  evidence, 
satisfactory  to  the  insurance  commissioner,  that  the  corporation 
has  accumulated  a  fund  equal  to  that  reiiuired  of  like  coi-pora- 
tlons  in  this  state,  constituting  a  reserve  or  surplus  fund,  held  in 
trust  for  the  benefit  of  its  contract-holdei-s,  and  so  invested  and 
held  as  required  by  the  laws  of  the  state  or  government  under 
which  such  corporation  was  oi-ganized.  The  insurance  commis- 
sioner must  thereupon  issue  a  license  to  such  corporation  to  do 
business  in  this  state.  This  license  must  be  renewed  annuall.v. 
and  may  be  revoked  whenever  it  is  ascertained  that  the  state- 
ments required  to  be  made  by  this  section  are  not  true.  Upon 
such  revocation,  notice  thereof  must  be  given  by  the  insurance 
commissioner  by  publication  in  some  newspaper  published  in  the 
city  and  county  of  San  Francisco,  for  two  weeks,  daily,  and  no 
new  contracts  must  be  made  by  such  company  in  this  state. 
When  any  other  state  or  country  imposes  any  additional  license, 
fees,  taxes,  or  penalties  upon  any  corporation  organized  or  doing 
business  under  this  chapter,  like  license,  fees,  taxes,  or  penal- 
ties are  imposed  upon  corporations  of  the  same  kind  and  their 
agents  of  such  state  or  country  doing  business  in  this  state. 

Enacted  March  20.  1005:  stats.  lOOr..  p.  410. 

XoTE. — See  note  to  §  453d. 


I  4~t3j  CIVIL  CODE.  1 17 

Limitations  upon  right  to  issue  contracts  of  insurance. 

§  453;.  No  corporation  doing  basiness  under  this  chaiiter. 
except  ac-cident  or  casualty  corporation?,  must  issue  a  contract 
of  insurance  upon  the  life  of  any  person  under  fifteen  nor  over 
sixty-one  years  of  age.  Every  such  contract  of  insurance  must 
be  founded  upon  written  application  therefor,  and.  except  where 
the  application  is  for  health,  accident,  or  casualty  insurance 
only,  or  for  one  hundred  dollars  life  insurance  or  less,  such 
application  must  be  accompanied  by  the  report  of  a  reputable 
physician,  containing  a  detailed  statement  of  his  examination  of 
the  applicant.  shov>-ing  the  applic-ant  to  be  in  good  health,  and 
recommending  the  issuance  of  a  contract  of  insurance.  Any 
-olicitor,  agent,  employee,  examining  physician,  or  other  person, 
making  a  false  or  fraudulent  statement  to  any  conxration  doing 
business  under  this  chapter,  with  reference  to  any  application 
for  insurance,  or  for  the  purpose  of  obtaining  any  money  or 
Ijenefit  from  such  corporation,  is  guilty  of  a  misdemeanor ;  and 
any  person  who  makes  a  false  statement  of  any  material  fact 
or  thing  in  a  sworn  statement  as  to  the  death  or  disability  of  a 
contract-holder,  in  any  such  corporation  for  the  purpose  of  pro- 
curing or  aiding  the  beneficiarj-  or  beneficiaries  or  contract- 
holder  in  procuring  the  payment  of  a  benefit  named  in  the  con- 
tract, is  guilty  of  perjury. 

Enacted  March  20,  190r> :  state.  1905.  p.  420. 

XoTE. — See  note  to  I  453(f. 

Exemptions  from  attachment  and  execution. 

§  453A-.  The  money,  benefit,  annuity,  endowment,  charity, 
relief,  or  aid  to  be  paid  as  provided  by  the  contracts  issued  by 
any  corporation  doing  business  under  this  chapter,  is  not  liable 
to  attachment  or  other  process,  nor  to  be  seized,  taken,  appro- 
priated, or  applied  by  any  legal  or  equitable  process,  nor  by 
operation  of  law,  to  pay  any  debts  or  liability  of  the  contract- 
holder  or  any  beneficiary  named  thereunder. 

Enacted  March  20,  1905  ;  stats.  1905.  p.  421. 

Note. — See  note  to  §  453d. 

Statements   to    be  filed    with  -the    insurance    commissioner:    pro- 
ceedings to  be  taken   by  him  thereon. 
§  453/.     Every  corporation,  whether  domestic  or  foreign,  doing 
the  business  of  effecting  insurance  on  the  assessment  plan  must, 
annually,  on  or  before  the  first  day  of  February,  file  with  the 


lis  CIVIL  CODE.  §  453? 

iusurauce  commissioner,  iu  such  form  as  he  may  prescribe,  a 
statement  of  its  affairs  for  tlie  year  ending  on  the  preceding 
thirty-first  day  of  December.  The  insurance  commissioner,  in 
person  or  by  duly  authorized  deputy,  has  the  power  of  examina- 
tion into  the  affairs  of  any  domestic  corporation  doing  Imsiness 
or  claiming  to  do  business  under  this  chapter,  at  any  time,  in 
his  discretion,  and  must  make  such  examination  at  least  once  a 
year.  If  he,  after  an  examination  of  the  affairs  of  a  corpora- 
tion, finds  that  it  is  not  doing  its  business  in  conformity  to  this 
chapter,  or  that  it  is  doing  a  fraudulent  or  unlawful  business,  or 
that  it  is  not  carrying  out  its  terms  of  contract,  or  that  it  can 
not,  within  three  months  from  the  date  of  notice  of  default,  pay 
its  obligations,  he  must  cite  the  president,  secretary,  manager,  or 
general  agent  of  the  corporation,  or  all  of  them,  to  appear  befor(> 
him,  stating  the  time  and  place,  to  show  cause  why  the  authority 
of  the  corporation  to  do  business  should  not  be  revoked,  and  if 
cause  "s  not  shown,  then  he  must  report  the  facts  to  the  attorney 
general  of  the  state,  who  must  commence  proceedings  in  the 
proper  court  to  restrain  the  corporation  from  doing  any  further 
business. 

Enacted  March  20,  1905;  stats.  1905.  p.  421. 

Note. — See  note  to  §  4.53d. 

Lapsing  of  policies,  when  forbidden. 

453m.  No  policy  or  certificate  issued  by  any  corporation  or 
association  doing  business  under  the  provisions  of  this  chapter 
lapses  for  the  non-payment  of  any  assessments,  dues,  or  pre- 
miums, unless  the  corporation  or  association  has  fii'st  mailed  to 
the  insured  under  such  policy  or  certificate,  at  his  or  her  last 
given  post  oSice  address,  a  notice  setting  forth  the  amount  to  be 
paid,  and  the  time  the  .same  is  due  and  payable ;  and  such  notice 
must  be  mailed  at  least  fifteen  days  before  the  assessment  is 
due;  provided,  that  such  corporations  doing  business  under  this 
chapter  as  collect  specific  amounts  at  specific  dates,  as  contained 
in  the  contract,  are  not  compelled  to  send  such  notices ;  and  an 
afiidavit  made  by  the  officer,  bookkeeper,  or  clerk  of  any  such 
corporation  having  charge  of  the  mailing  of  notices,  setting  forth 
the  facts  as  they  appear  on  the  records  in  the  office  of  the  said 
corporation,  showing  that  such  notice  was  mailed  and  the  date 
of  mailing,  is  conclusive  evidence  of  the  mailing  of  such  notice. 

Enacted  March  20,  1905;  stats.  1905.  p.  421. 

Note. — See  note  to  §  453d. 


§  453*(  CIVIL  CODE.  119 

Fees  and  penalties. 

§  453h.  The  fees  for  filing  statements,  certificates,  or  other 
documents  required  by  this  chapter,  or  for  any  service  or  act  of 
the  insurance  commissioner,  and  the  penalties  for  any  violation 
of  this  chapter,  must,  except  as  otherwise  provided  herein,  be 
the  same  as  provided  in  the  laws  of  this  state  relating  to  life 
insurance  companies,  and  must  be  disposed  of  as  provided  by 
such  laws. 

Enacted  March  20,  1905 ;  stats.  1905,  p.  422. 

Note. — See  note  to  §  453d. 

Insurance  commissioner  to  present  bills  for  certain  expenses. 

§  453o.  For  all  lawful  expenses  under  this  chapter,  or  by 
reason  of  any  of  its  provisions,  in  the  prosecution  of  any  suit 
or  proceeding,  or  otherwise,  for  the  enforcement  of  the  provisions 
of  this  chapter,  the  insurance  commissioner  must  present  bills, 
duly  certified  by  him,  and  accompanied  with  vouchers,  to  the 
.state  board  of  examiners,  who  may  allow  the  same,  and  direct 
payment  thereof  to  be  made  ;  and  the  state  controller  must  draw 
warrants  therefor  on  the  state  treasurer  for  the  payment  of  the 
same  to  the  insurance  commissioner,  out  of  the  general  fund,  in 
addition  to  the  ordinary  contingent  expense. 

Enacted  March  20,  1905 ;  stats.  1905,  p.  422. 

Note. — See  note  to  §  453d. 

Exemption  of  fraternal  societies  from  this  chapter. 

§  453p.  The  provisions  of  this  chapter  do  not  apply  to  secret 
or  fraternal  societies,  lodges,  or  councils,  which  conduct  their 
business  and  secure  membership  on  the  lodge  system  exclusively, 
having  ritualistic  work  and  ceremonies  in  their  societies,  lodges, 
or  councils,  nor  to  any  mutual  or  benefit  association  organized  or 
formed  and  composed  of  members  of  any  such  society,  lodge,  or 
council  exclusively. 

Enacted  March  20,  1905 ;  stats.  1905,  p.  422. 

Note.— See  note  to  S  \'>?-d. 

See,  also,  Pol.  C.  §  630. 


120  CIVIT-  CODK.  §  451 

TITLE  III. 

Railroad  Corporations. 

(For  powers  and  duties  of  railroad  commissioners,  and  other 
acts  concerning-  railroads,  see  "Railroads,"  statutes  at  large, 
Appendix.) 

Chap.  I.     Officers  and  corporate   stock.      §§  454-459. 

II.     Enumeration  of  powers.      §§  465-478. 

III.     Business,  how  conducted.      §§  4  79-494. 

CHAPTER  I. 

OFFICERS   AND   CORPORATE    STOCK. 

Sec.  454.     Directors  to  be  elected,  when. 

455.     Additional    provisions    in    assessment    and    transfer    of 

stock. 
4  56.     Corporation     may    borrow    money     and     issue    bonds. 

Limitation  of  amount. 
457.-     To  provide  a  sinking  fund  to  pay  bonds. 
4  58.     Capital  stock  to  be  fixed. 
4  59.     Certificate  of  payment  of  fi.\ed  capital  stock. 

Directors  to  be  elected,  when. 

S  454.  ])ireetors  of  railroad  coriiorations  may  be  elected  at  a 
meeting  of  the  stockholders  other  than  the  annual  meeting,  as 
a  majority  of  the  fixed  capital  stock  may  determine,  or  as  the 
liy-laws  may  provide;  notice  thereof  to  be  given  as  provided  for 
notices  of  meetings  to  adopt  b3'-laws  in  article  two,  chapter  one, 
title  one,  of  this  part. 

Enacted  March  21,  1872. 
1.32  Cal.  078. 

Additional  provisions  in   assessment  and  transfer  of  stock. 

S  455.  No  stock  in  any  railroad  corporation  is  transferable 
until  all  the  previous  calls  or  installments  thereon  have  been 
fully  paid  in  ;  nor  is  any  such  transfer  valid,  except  as  between 
I  ho    parties   thereto,   unless   at   least   twenty   per   cent    has   been 


§  455  CIVIL    CODE.  T-1 

paid   thereon  and  certificates  issued   therefor,   and   the   transfer 
approved  by  the  board  of  directors. 
Enacted  March  21,  1872. 

Corporations  may  borrow  money  and   issue  bonds — Liniitation  of 
amount. 

§  456.  Railroad  corporations  may  borrow,  oil  the  credit  of 
the  corporation  and  under  such  regulations  and  restrictions  as 
tlie  board  of  directors  thereof,  by  unanimous  concurrence,  may 
impose,  such  sums  of  money  as  may  be  necessary  for  construct- 
ing and  completing  their  railroad,  with  its  equipments,  and  for 
the  purchase  of  all  necessary  rolling  stock  and  all  else  relative 
thereto,  and  may  issue  promissory  notes  therefor,  or  may  issue 
and  dispose  of  bonds  to  raise  moneys  necessary  to  pay  therefor, 
at  a  rate  of  interest  not  exceeding  ten  per  cent  per  annum  ;  and 
may  also  issue  bonds,  or  promissory  notes,  at  the  same  I'ate  of 
interest  in  payment  of  any  debts  or  contracts  for  constructing 
and  completing  their  road,  with  its  equipments  and  rolling  stock, 
and  all  else  relative  thereto,  and  for  the  purchase  of  railroads 
and  other  property  within  the  purpose  of  the  corporation.  The 
amount  of  bonds,  or  promissory  notes,  issued  for  .such  purposes 
must  not  exceed  in  all  the  amount  of  their  capital  stock  ;  and 
to  secure  the  payment  of  such  bonds,  or  notes,  they  may  mort- 
gage their  corporate  property  and  franchises,  or  may  secure  tho 
payments  of  such  bonds,  or  notes,  by  deed  of  trust  of  their  cor- 
porate property  and  franchises.  Any  person  or  corporation 
formed  under  the  laws  of  this  state,  or  of  any  other  state  within 
the  United  States,  that  the  directors  of  the  railroad  corporation 
majS  by  unanimous  concurrence,  select,  may  be  trustees  in  such 
deed  of  trust. 

Amended  March  4,  1S09  ;  stats.  J 899,  p.  57. 

109  Cal.  595  ;  124  Cal.  329  ;  125  Cal.  409,  454. 

Penalty  for  debt  exceeding  available  means  :  Pen.  C.  §  560. 

To  provide  a  sinking  fund  to  pay  bonds. 

§  457.  The  directors  must  provide  a  sinking  fund,  to  be 
specially  applied  to  the  redemption  of  such  bonds  on  or  before 
their  maturity,  and  may  also  confer  on  any  holder  of  any  bond 
or  note  so  issued,  for  money  bori'owed  or  in  payment  of  any 
debt  or  contract  for  the  construction  and  equipment  of  such 
road,  the  right  to  convert  the  principal  due  or  owing  thereon 
into  stock  of  such  corporation,  at  any  time  within  eisht  years 
6— CL. 


122  CIVIL  coDF.  8  ^r»T 

from   the   date   of   such   bonds,   under   such   regulations   as    the 
directors  may  adopt. 

Enacted  March  21,  1872. 
125  Cal.  454. 

Capital  stock  to  be  fixed. 

§  458.  When,  at  auj'  time  after  filin?  the  articles  of  incor- 
lioratiou,  it  is  ascertained  that  the  capital  stock  therein  set  out 
is  either  more  or  less  than  actuallj'  required  for  constructing, 
equipping,  operating,  and  maintaining  the  road,  by  a  two-third 
vote  of  the  stockholders  the  capital  stock  must  l>e  fixed,  and  a 
certificate  thereof,  and  of  the  proceedings  had  to  fix  the  same, 
must  be  made  out  and  filed  in  the  office  of  the  secretary  of  state. 

Enacted  March  21,  1872. 
65  Cal.  209. 

See,  also.  Civ.  C.  §§  291-294. 

Certificate  of  payment  of  fixed  capital  stock. 

§  459.  Within  thirty  days  after  the  payment  of  the  last 
installment  of  the  fixed  capital  stock  of  any  railroad  corporation 
organized  under  this  title  and  part,  the  president  and  secretary 
and  a  majority  of  the  directors  thereof  must  make,  subscribe, 
and  file  in  the  office  of  the  secretary  of  state  a  certificate,  stating 
the  amount  of  the  fixed  capital  stock,  and  that  the  whole  thereof 
haji  been  paid  in.  The  certificate  must  be  verified  by  the  affidavit 
of  the  president  and  secretary. 

Enacted  ^farch  21,  1872. 

ciiArrKi;  ii. 

ENUMERATION    OF    POWERS. 

(Powers  and  duties  of  railroad  commissioners:  See  "Kail- 
roads,"  statutes  at  large.  Appendix.) 

Sec.  465.     Enumeration  of  powers: 

1.  To  survey  road  ; 

2.  May  accept  real  estate ; 

3.  May  acquire  real  estate  ; 

4.  Lay  out  road,  how  wide  ; 

■5.  Where  may  construct  road  ; 

6.  May  cross  or  connect  roads  ; 

7.  May  purchase  land,  timber,  .stotic,  RvaviM,  etc.  ; 

8.  Carry  persons  and  freight ; 

9.  Erect  necessary  buildings  ; 


§  4V,r>  CIVIL   CODE.  123 

1 0.  Tiegulate  time  and  freights,  siib.jpct  to  legislation  ; 

11.  Regulate  force  and  speed; 

12.  To  acqiJire   franchises,   rights   of  prupcrty,   etc.,   of 

other  corporations. 
Sec.  465a.  Motive  power,  what  authorized  to  use. 

466.  Map  and  profile  to  be  filed. 

467.  May  change  line  of  road. 

468.  Con^ruction  must  be  commenced  and  continued  ;  opera- 

tion ;  forfeiture  of  franchise. 
4  69.     Crossings  and  intersections.     Condemnation. 
4  70.     Not  to  use  streets,  alleys,  or  water  in  cities  or  towns, 

except    by    a    two-third    vote    of    the    city    or    town 

authorities. 

471.  Railroads  through  cities  not  to  chaige  fare  to  and  from 

points  therein.      [Repealed.] 

472.  When  crossing  railroads  or  highways,  how  other  lands 

are  acquired. 

473.  Corporations   may   consolidate.     Publication    of   notice. 

Copy  to  be  filed. 
473a.  May  lease  or  use  whole  or  part  of  another  road. 

474.  State  lands  granted  for  use  of  corporations. 

475.  Grant  not  to  embrace  town  lots. 

476.  Wood,  stone,  and  earth  may  be  taken  from  state  lands. 

477.  Lands  revert  to  state,  when. 

478.  Selections  made,  how  proved  and  certified  to. 

Enumeration  of  powers. 

§  465.     Every  railroad  corporation  has  power  : 

1.  To  cause  such  examination  and  surveys  to  be  made  as  may 
be  necessary  to  the  selection  of  the  mcst  advantageous  route  for 
the  railroad ;  and  for  such  purposes  their  officers,  agents  and 
employees  may  enter  upon  the  lands  or  waters  of  any  person, 
subject  to  liability  for  all  damages  which  they  may  do  thereto ; 

2.  To  receive,  hold,  take,  and  convey,  by  deed  or  otherwise, 
as  a  natural  person,  such  voluntary  grants  and  donations  of 
real  estate  and  other  property,  which  may  be  made  to  it  to  aid 
and  encourage  the  construction,  maiutenance  and  accommodation 
of  such  railroad ; 

3.  To  purchase,  or  by  voluntary  grants  or  donations  to  receive, 
enter,  take  possession  of,  hold  and  use  all  such  real  estate  and 
other  property  as  may  be  absolutely  necessary  for  the  construc- 
tion and  maintenance  of  such  railroads,  and  for  all  stations, 
depots  and  other  purposes  necessary  to  successfully  work  and 
conduct  the  Inisinoss  of  the  road  ; 


124  CTvn.  CODE.  §  465 

4.  To  lay  uuL  its  road,  uot  exceeding  teu  I'odsi  wide,  and  to 
construct  and  maintain  the  same,  with  one  or  more  traclis,  and 
with  such  appendages  and  adjuncts  as  may  be  necessary  for  the 
convenient  use  of  the  same  ; 

5.  To  construct  their  roads  across,  along  or  upon  any  stream 
of  water,  watercourse,  roadstead,  bay,  navigable  stream,  street, 
avenue  or  highway,  or  across  any  railway,  canal,  ditch  or  flume 
which  the  route  of  its  road  intersects,  crosses  or  runs  along,  in 
such  manner  as  to  afford  security  for  life  and  property  ;  but  the 
corporation  shall  restoi'e  the  stream  or  watercourse,  road,  street, 
avenue,  highvi'ay,  railroad,  canal,  ditch  or  flume  thus  intersected 
to  its  former  state  of  usefulness  as  near  as  may  be,  or  so  that 
the  railroad  shall  uot  unnecessarily  impair  its  usefulness  or 
injure  its  franchise ; 

G.  To  cross,  intersect,  join,  or  unite  its  railroad  with  any 
other  railroad,  either  before  or  after  construction,  at  any  point 
upon  its  route,  and  upon  the  grounds  of  such  other  railroad 
corporation,  with  the  necessary  turnouts,  sidings  and  switches, 
and  other  conveniences  in  furtherance  of  the  objects  of  its  con- 
nections ;  and  every  corporation  whose  railroad  is,  or  shall  be 
hereafter  intersected  by  any  new  railroad,  shall  unite  with  the 
owners  of  such  new  railroad  in  forming  such  intersections  and 
connections,  and  grant  facilities  therefor;  and  if  the  two  corpo- 
rations can  not  agree  upon  the  amount  of  compensation  to  be 
made  therefor,  or  the  points  or  the  manner  of  such  crossings, 
intersections  and  connections,  the  same  shall  be  ascertained  and 
determined  as  is  provided  in  title  VII,  part  III,  Code  of  Civil 
Procedure  (sees.  1237-1263)  ; 

7.  To  purchase  lands,  timber,  stone,  gravel  or  other  materials 
to  be  used  in  the  construction  and  maintenance  of  its  road,  and 
all  necessary  appendages  and  adjuncts,  or  acquire  them  in  the 
manner  provided  in  title  VII,  part  III,  Code  of  Civil  Procedure, 
for  the  condemnation  of  lands ;  and  to  change  the  line  of  its  road, 
in  whole  or  in  part,  whenever  a  majority  of  the  directors  so 
determine,  as  is  provided  hereinafter ;  but  no  such  change  must 
vary  the  general  route  of  such  road,  as  contemplated  in  its 
articles  of  incorporation  ; 

8.  To  carry  persons  and  property  on  their  railroad,  and  to 
receive  tolls  or  compensation  therefor; 

9.  To  erect  and  maintain  all  necessary  and  convenient  build- 
ings, stations,  depots,  fixtures  and  machinery  for  the  accommo- 
dation and  use  of  their  passengers,  freight  and  business ; 


§  46f.  civil.  CODE  125 

iO.  Tu  rt'j^ulale  tliL-  time  and  manuer  in  wliieli  passeugeia  auil 
property  shall  be  transported,  and  the  tolls  and  compensatiou  to 
be  paid  therefor  within  the  limits  prescribed  by  law  and  subject 
to  alteration,  change  or  amendment  by  the  legislature  at  any 
time ; 

11.  To  regulate  the  force  and  speed  of  their  locomotives,  cars, 
trains  or  other  machinery  used  and  employed  on  their  roads,  and 
to  establish,  execute  and  enforce  all  needful  and  proper  rules 
and  regulations  for  the  management  of  its  business  transactions 
usual  and  proper  for  railroad  corporations  ; 

12.  To  purchase,  lease  or  acquire  the  franchises,  rights  and 
property,  or  any  part  thereof,  of  any  railroad  corporation,  leas- 
ing or  owning  any  railroad  outside  of  the  State  of  California, 
and  to  operate  the  same,  and  to  use  the  franchises  of  any  such 
road,  and  to  build  and  operate  extensions  thereof;  provided,  tliat 
nothing  herein  shall  authorize  any  corporation  to  ]uirchase  the 
franchises,  rights,  and  property  of  any  railroad  operated  in 
competition  with  it ;  and  to  purchase,  acquire  and  hold  the  stocks, 
bonds  or  other  securities  of  any  railroad  corporation  organized 
under  the  laws  of  this  state  or  of  any  other  state  or  terri- 
tory, with  full  power  to  sell  the  same  ;  provided,  that  nothing 
herein  will  authorize  any  corporation  to  purchase  the  stock  of 
any  railroad  corporation  operated  in  competition  with  it. 

Amended  March  4,  1907 ;  stats.  1907,  p.  99. 

5.3  Cal.  227 ;  07  Cal.  431 ;  09  Cal.  200 ;  92  Cal.  045  ;  93 

Cal.  205;  111  Cal.  227;  129  Cal.  10;  134  Cal.  414,  415; 

142  Cal.  .392;  149  Cal.  91,  92;   152  Cal.  .308:   1.53  Cal. 

752 ;  1  Cal.  App.  443  ;  2  Cal.  App.  5.59. 
Crossiug.s  and  intersections:  Civ.  C.  §§  409  and  472. 
Hates  of  charges:  Civ.  C.  §  489;  Const.  Cal.,  art.  XII,  §  22. 
Time  tables,  etc. :  Civ.  C.  §  481. 

Motive  power,  what  authorized  to   use. 

§  465(/.  Every  per.son  or  corporation  now  or  hereafter  author- 
ized to  operate  a  railroad  l.'y  steam  motive  power,  is  also  author- 
ized to  use  electricity  or  compressed  air,  or  both,  either  with 
or  without  such  steam,  for  the  ])urpose  of  propelling  cars  or 
(rains  on  such  railroad  or  upon  any  portion  thereof.  In  incor- 
jiorated  cities,   towns,  or  cities  and  counties  haxiiig    more   than 


126  CIVIL  CODE.  §  465a 

five  Ihou.saiul  iuhabiliiuts,  nutliorily  must  ho  oIilaiiKMl  from  llio 
leg'islativo  authority  thereof. 

Enacted  March  21,  1905;  slats.  llKin.  j).  .-)7-l. 

Note. — §  46.'Jrt.  Tliis  section  is  a  coditication  of  tlie  slatiito  of 
1S93,  page  208,  relating  to  the  operation  of  railroads. 

Map  and  profile  to  be  filed. 

§  466.  Every  railroad  corporation  in  this  state  must,  within 
a  reasonable  time  after  its  road  is  finally  located,  cause  to  be 
made  a  map  and  profile  thereof,  and  of  the  land  acquired  for  the 
use  thereof,  and  the  boundaries  of  the  several  counties  throuuh 
which  the  road  may  run,  and  file  the  same  in  the  office  of  the 
secretary  of  .state ;  and  also  like  maps  of  the  parts  thereof 
located  in  different  counties,  and  file  the  same  in  the  ofiice  of  the 
clerk  of  the  county  in  which  such  parts  of  the  road  are.  there 
to  remain  of  record  forever.  The  maps  and  profiles  must  be 
certified  by  the  chief  engineer,  the  acting  president  and  secretary 
of  such  company,  and  copies  of  the  same,  so  certified  and  filed, 
be  kept  in  the  office  of  the  secretary  of  the  corporation,  sub- 
ject to  examination  by  all  parties  interested. 

Enacted  March  21,  1872. 

May  change  line  of  road. 

§  467.  If  at  any  time  after  the  location  of  the  line  of  the  rail- 
road and  the  filing  of  the  maps  and  profiles  thereof,  as  pro- 
vided in  the  preceding  section,  it  appears  that  the  location  can 
l)e  improved,  the  directors  may,  as  provided  in  subdivision  seven, 
section  four  hundred  and  sixty-five,  alter  or  change  the  same, 
and  cause  new  maps  and  profiles  to  be  filed,  showing  such 
changes,  in  the  same  ofiices  where  the  originals  are  of  [on]  file,  and 
may  proceed  in  the  same  manner  as  the  original  location  was 
acquired,  to  acquire  and  take  possession  of  such  new  line,  and 
must  sell  or  relinquish  the  lands  owned  by  them  for  the  original 
location,  within  five  years  after  such  change.  .  No  new  location, 
as  herein  provided,  must  be  so  run  as  to  avoid  any  points  named 
in  their  articles  of  incorporation. 

Enacted  March  21,  1872. 

Construction  must  be  commenced  and  continued;  operation;  for- 
feiture of  franchise. 
§468.  Every  railroad  cor))oratiou  must,  witliin  two  years 
after  filing  its  original  articles  of  incorporation,  begin  the  con- 
.struction  of  its  road,  and  must  every  year  thereafter  complete 
and  put  in  full  operation  at  least  five  miles  of  its  road,  until 


§  4(i8  CIVIL  CODE.  127 

the  same  is  fully  completed;  and  iiiiou  its  failure  so  to  do. 
for  the  period  of  cue  year,  its  right  to  extend  its  road  beyoud 
the  point  then  completed  is  forfeited.  After  the  completion  of 
any  railroad,  or  any  part  thereof,  capable  of  being  operated, 
its  owner  must  operate  it,  and  upon  his  failure  to  keep  it,  or 
any  part  thereof,  in  full  operation  for  the  period  of  six  months, 
his  right  to  operate  it  in  whole  or  in  part,  as  the  case  may  be, 
is  forfeited,  and  the  lands  occupied  for  the  pu nooses  of  the  road, 
so  far  as  the  same  is  not  operated,  revert  to  the  original  owners 
or  their  successors  in  interest.  A  railroad  is  in  full  operation 
when  one  passenger  train,  or  one  mixed  train,  is  run  over  it 
once  a  day  in  each  direction  and  a  sufficient  number  of  freight 
trains  to  accommodate  the  traffic  on  the  road.  If  a  railroad 
is  wholly  constructed  at  an  elevation  of  five  thousand  feet  or 
more  above  the  level  of  the  sea.  its  owner  is  not  required  to 
maintain  and  operate  it.  nor  to  run  passenger  or  other  trains 
thereon,  between  the  fifteenth  of  October  of  any  year  and  the 
fifteenth  of  May  of  the  year  following.  This  section  must  not 
be  construed  to  require  the  operation  of  a  road  when  prevented 
by  the  act  of  God,  nor  when  the  operation  of  the  road,  together 
with  its  branch  and  trunk  lines,  does  not  yield  income  sufficient 
to  defray  the  expenses  of  maintaining  and  operating  it  in  con- 
nection with  its  branch  and  trunk  lines.  The  railroad  com- 
missioners have  the  power  to  examine  and  determine  whether  a 
railroad,  together  with  its  branch  and  trunk  lines,  yields  income 
sufficient  to  operate  the  same. 

Amended  March  21,  lOO.j;  stats.  l!»Or),  p.  .174. 
02  Cal.  040 ;  3  Cal.  App.  078. 

Note.- — §  468.  The  amendments  consist  in  codif.vinK'  and  add- 
ing to  the  section  the  provi.slons  of  the  statute  of  18S0,  page  4:!, 
to  compel  the  operation  of  raih-oads,  and  of  the  statute  of  1897, 
page  5,  to  provide  for  the  management  and  operation  of  railroads 
above  certain  elevations. 

See,  also,  "Railroads,"  statutes  at  large,  Appendix. 

Crossings   and    intersections — Condemnation. 

§  469.  Whenever  the  track  of  one  railroad  intersects  or 
crosses  the  track  of  another  railroad,  whether  the  same  be  a 
street  railroad,  wholly  within  the  limits  of  a  city  or  town,  or 
other  railroad,  I  In-  rr.ils  of  either  or  each  road  must  be  so  cut 
and  ad.iusted  as  lo  permit  the  passage  of  the  cars  on  each  road 
with  as  little  obstruction  as  possible  ;  and,  in  case  the  persons 


128  CIVIL  CODE.  S  409 

or  eorpoi'ations  owning  the  railroads  can  not  agree  as  to  the 
compensation  to  be  made  for  cutting  and  adjusting  the  rails, 
the  condemnation  of  the  right  of  way  over  the  one  for  the  use 
of  the  other  road  may  be  had  in  proceedings  under  title  VII, 
part  III,  Code  of  Civil  Procedure,  and  the  damages  assessed  and 
the  right  of  way  granted  as  in  other  cases. 

Enacted  March  21,  1872. 

Crossings  and  intersections  :  See,  also.  Civ.  C.  §  40.i,  subd.  0  ; 
Civ.  C.  §  472.  . 

Not  to  use  streets,  alleys,  or  water  in  cities  or  towns,  except  by  a 
two-third  vote  of  the  city  or  town  authorities. 
§  470.  No  railroad  corporation  must  use  any  street,  alley,  or 
highway,  or  any  of  the  land  or  water,  within  any  incorporated 
city  or  town,  unless  the  right  to  so  use  the  same  is  granted  by 
a  two-third  vote  of  the  town  or  city  authority  from  which  the 
right  must  emanate. 

Enacted  March  21,  1872. 

69  Cal.  20G  ;  92  Cal.  645  ;  105  Cal.  94  ;  109  Cal.  319. 

Railroads  throiigh   cities   not  to  charge  fare  to  and   from    points 
therein.     [Repealed.] 
§471.     Kailroads    Ihrough    cities    in'i    to    charge    fare    lo    and 
from  points  therein.      [Repealed  April  1.  1S78;  amendfs.  1877-8, 
p.  84.1 

When     crossing     railroads     or     highways,     how     other     lands     are 
acquired. 

§472.  Whenever  the  track  oL'  .'^uch  railroad  crosses  a  rail 
road  or  highway,  such  railroad  or  highway  may  be  carried  under, 
over,  or  on  a  level  with  the  track,  as  may  be  most  expedient ; 
and  in  cases  where  an  embankment  or  cutting  necessitates  a 
change  in  the  line  of  such  railroad  or  highway,  the  corporation 
may  take  such  additional  laud.s  and  material  as  are  necessary  for 
the  construction  of  such  road,  or  highway  on  such  new  line.  If 
such  other  necessary  lands  can  not  be  had  otherwise,  they  may 
be  condemned  as  provided  in  title  VII,  part  III,  Code  of  Civil 
Procedure  ;  and  when  compensation  is  made  therefor,  the  same 
becomes  the  property  of  the  corporation. 

Enacted  March  21,  1872. 

See,  also.  Civ.  C.  §  465.  subd.  G.  and  Civ.  C.  §  469. 

See,  Pol,  C.  §  2G94. 


^  478  mviL  CODE.  129 

Corporations  may  consolidate — Publication  of  notice — Copy  to  be 
filed. 
§  473.  Any  railroad  corpovatiou  iucorporated  uuder  the  laws 
of  this  state  may  consolidate  with  one  or  more  railroad  cor- 
porations incorporated  under  the  laws  of  this  state,  or  under 
the  laws  of  any  other  state  or  territory  of  the  United  States, 
its  capital  stock,  properties,  roads,  equipments,  adjuncts,  fran- 
chises, claims,  demands,  contracts,  agreements,  obligations,  debts, 
liabilities  and  assets  of  every  kind  and  description,  upon  such 
terms  and  in  such  manner  as  may  be  agreed  upon  by  their 
respective  boards  or  directors ;  provided,  no  such  consolidation 
shall  take  effect  until  the  same  shall  have  been  ratified  and  con- 
firmed in  writing  by  stockholders  of  the  respective  corporations 
representing  three  fourths  of  the  subscribed  capital  stock  of 
their  respective  corporations.  In  case  of  such  consolidation 
"articles  of  incorporation  and  consolidation"  must  be  prepared, 
setting  forth :  First,  the  name  of  the  new  corporation ;  second, 
the  purpose  for  which  it  is  formed ;  third,  the  place  where  its 
principal  business  is  to  be  transacted  ;  fourth,  the  term  for  which 
it  is  to  exist,  which  shall  not  exceed  fifty  years ;  fifth,  the  num- 
ber of  its  directors  (which  shall  not  be  less  than  five,  nor  more 
than  thirteen)  and  the  names  and  residences  of  the  persons 
appointed  to  act  as  such  until  their  successors  are  elected  and 
qualified;  sixth,  the  amount  of  its  capital  stock  (which  shall 
not  exceed  the  amount  actually  required  for  the  purposes  of  the 
new  corporation,  as  estimated  by  competent  engineers),  and  the 
number  of  shares  into  which  it  is  divided  ;  seventh,  the  amount 
of  stock  actually  subscribed,  and  by  whom  ;  eighth,  the  termini 
of  its  road  or  roads  and  branches ;  ninth,  the  estimated  length  of 
its  road  or  roads  and  branches ;  tenth,  the  names  of  the  con- 
stituent corporations,  and  the  terms  and  conditions  of  consolida- 
tion in  full.  Said  articles  of  incorporation  and  consolidation 
must  be  signed  and  countersigned  by  the  iDresidents  and  secreta- 
ries of  the  several  constituent  corporations  and  sealed  with  their 
corporate  seals.  There  must  be  annexed  thereto  memoranda 
of  the  ratification  and  confirmation  thereof  by  the  stockholders 
of  each  constituent  corporation,  which  must  be  respectively 
signed  by  stockholders  representing  at  least  three  fourths 
of  the  capital  stock  of  their  respective  corporations.  When 
completed  as  aforesaid  said  articles  must  be  filed  in  the  ofiice  of 
the  county  clerk  of  the  county  in  which  the  original  articles  of 


130  CIVIL  CODE.  §  478 

iucorporatiou  of  either  of  the  consolidaling  corpo rations  are  filed, 
and  a  copy  of  the  articles  of  incorporation  and  consolidation 
certified  by  such  county  clerk  must  be  filed  in  the  office  of  the 
secretary  of  state,  and  thereupon  the  constituent  corporations 
named  therein  must  be  deemed  and  held  to  have  become  extinct 
in  all  courts  and  places,  and  said  new  corporation  must  be 
deemed  and  held  in  all  courts  and  places  to  have  succeeded  to 
all  their  several  capital  stocks,  properties,  roads,  equipments, 
adjuncts,  franchises,  claims,  demands,  contracts,  agreements, 
assets,  choses  and  rights  in  action  of  every  kind  and  description, 
both  at  law  and  in  equity,  and  to  be  entitled  to  possess,  enjoy, 
and  enforce  the  same  and  every  thereof,  as  fully  and  com- 
pletely as  either  and  every  of  its  constituents  might  have  done 
had  no  consolidation  taken  place.  Said  consolidated  or  new 
corporation  must  also,  in  all  courts  and  places,  be  deemed 
and  held  to  have  become  subrogated  to  its  several  constituents 
and  each  thereof,  in  respect  to  all  their  contracts  and  agreements 
with  other  parties,  and  all  their  debts,  obligations,  and  liabilities, 
of  every  kind  and  nature,  to  any  persons,  corporations,  or  bodies 
politic,  whomsoever,  or  whatsoever,  and  said  new  corporation 
must  sue  and  be  sued  in  its  own  name  in  any  and  every  case  in 
which  any  or  either  of  its  constituents  might  have  sued  or  might 
have  been  sued  at  law  or  in  equity  had  no  such  consolidation 
been  made.  Nothing  in  this  section  contained  shall  be  construed 
to  impair  the  obligation  of  any  contract  to  which  any  of  such 
constituents  were  parties  at  the  date  of  such  consolidation.  All 
such  contracts  may  be  enforced  by  action  or  suit,  as  the  case 
may  be,  against  the  consolidated  corporation,  and  satisfaction 
obtained  out  of  the  property  which,  at  the  date  of  the  consoli- 
dation, belonged  to  the  constituent  which  was  a  party  to  the 
contract  in  action  or  suit,  as  well  as  out  of  any  other  property 
belonging  to  the  consolidated  corporation. 

Amended  March  IG,  1901 ;  stats.  1901,  p.  327. 

67  Cal.  61 ;  76  Cal.  405 ;  98  Cal.  216 ;  109  Cal.  577 :  119 
Cal.  343 ;  147  Cal.  666. 

May  lease  or  use  whole  or  part  of  another  road. 

§  473(7.  Railroad  corporations  doing  business  in  this  state 
and  organized  under  any  law  of  this  state  or  the  ITnited  State.';, 
or  of  any  state  or  territory  thereof,  have  power  to  enter  into 
contracts  with  one  another,   whereby  the  one  may  lease  of  the 


§  473a  CI^^L  code.  131 

other  the  whole  or  any  part  of  its  railroad,  or  may  acquire  of 
the  other  the  right  to  use,  in  common  with  it,  the  whole  or  any 
part  of  its  railroad. 

Enacted  March  21,  1905  ;  stats.  1905,  p.  575. 

Note. — §  473a.  Section  2  of  the  statute  of  1880,  page  21, 
authorizing  railway  and  other  corporations  organized  under  the 
laws  of  this  state  or  of  any  state  or  territory  of  the  United 
States  to  do  business  in  this  state,  on  equal  terms,  is  codified  in 
this  section. 

State  lands  granted  for  use  of  corporations. 

§  474.  There  is  granted  to  every  railroad  eorporatiou  the  right 
of  way  for  the  location,  construction,  and  maintenance  of  their 
necessary  works,  and  for  every  necessary  adjunct  thereto,  over 
any  swamp,  overflowed,  or  other  public  lands  of  the  state  not 
otherwise  disposed  of  or  in  use,  not  in  any  case  exceeding  in 
length  or  width  that  which  is  necessary  for  the  construction  of 
such  works  and  adjuncts,  or  for  the  protection  thereof,  not  in 
any  case  to  exceed  two  hundred  feet  in  width. 

Enacted  March  21,  1872. 

Grant  not  to  embrace  town  lots. 

§  475.  The  grants  mentioned  in  the  preceding  section  do  not 
apply  to  public  lands  of  the  state  within  the  corporate  limits  of 
towns  and  cities,  or  within  three  miles  thereof. 

Enacted  March  21.  1872. 

Wood,  stone,  and  earth  may  be  taken  from  state  lands. 

§  476.  The  right  to  take  from  any  of  the  lands  belonging  to 
the  state,  adjacent  to  the  works  of  the  corporation,  all  materials, 
such  as  wood,  stone,  and  earth,  naturally  appurtenant  thereto, 
which  may  be  necessary  and  convenient  for  the  original  con- 
struction of  its  works  and  adjuncts,  is  granted  to  such  corpora- 
tions. 

Enacted  March  21.  1872. 

Lands  revert  to  state,  when. 

§477.  If  any  .corporation  receiving  state  lands  or  appur- 
tenances thereunder  is  dissolved,  ceases  to  exist,  is  discontinued, 
or  the  route  or  line  of  its  works  is  so  changed  as  not  to  cover 
or  cross  the  lands  selected,  or  the  use  of  the  lauds  selected  is 
abandoned,  such  selected  lands  revert,  and  the  title  thereto  is 
reinvested  in  the  state  or  its  grantees,  free  from  all  such  uses. 

Enacted  March  21,  1872. 


132  CIVIL  CODK.  S  478 

Selections  made,  how  proved  and  certified  to. 

§  478.  When  any  selection  of  the  right  of  way,  or  land  for 
an  adjunct  to  the  works  of  a  railroad  corporation,  is  made  by 
any  corporation,  the  secretary  thereof  must  transmit  to  the 
surveyor  general,  controller  of  state,  and  recorder  of  the  county 
in  which  the  selected  lands  are  situate,  a  plat  of  the-  lands  so 
selected,  giving  the  extent  thereof  and  uses  for  which  the  same 
is  claimed  or  desired,  duly  verified  to  be  correct;  and  if  approved, 
the  surveyor  general  must  so  indorse  the  plat,  and  issue  to  the 
corporation  a  permit  to  use  the  same,  unless,  on  petition  prop- 
erly presented  to  the  court,  a  review  is  had  and  such  use  pro- 
hibited. 

Enacted  March  21,  1872. 
101  Cal.  336. 

CHAPTER  III. 

BUSINESS,   HOW   CONDUCTED. 

(See,  also,  C-iv.  C.  §  2ir.S  tt  utij..  and  "Kaihoads,"  statulcs 
at  large,  Appendix.) 

Sec.  479.     Checks  to  be  affixed  to  all  baggage.     Damages. 

480.  Annual  report  to  be  verified.     Form  of  report. 

481.  Duties  of  corporation. 

4  82.     Corporation  to  pay  damages  for  refusal. 

483.     Furnish  room  inside  passenger  cars,  and  be  responsible 

for  damages  occurring  on  freiglit  and  otlaer  cars. 
4  84.     Corporations    to     post    printed    regulations,     and    not 

responsible  for  damages  in  violation  of  rules. 

485.  Fences.     To  pay  damages.     Not  liable  in  certain  ca.ses. 

Corporation  may  recover  damages,  when. 

486.  Regulations  of  trains.     Penalty. 

487.  Passengers  refusing  to  pay  fare. 
4  88.     Officers  to  wear  badge. 

489.  Rates  of  charges. 

490.  Passenger  tickets,  how  issued,   and   to  be  good  for  si.K 

months. 

491.  Character  of  iron  rail  to  be  used. 

492.  Elevated  or  underground  railways. 

493.  To  apply  to  all  railroad  companies. 

494.  Sale  of  property  to  another  railroad. 

Checks  to  be  affixed  to  all  baggage — Damages. 

§  479.  A  check  must  be  affixed  to  every  package  or  parcel  of 
baggage  when  taken  for  transportation  by  any  agent  or  employee 


§479  CIVIL   CODE.  133 

ol'  such  railruad  corporation,  and  a  duplicate  thereof  giveu  to  the 
passenger  or  person  delivering  the  same  in  his  behalf ;  and  if 
such  check  is  refused  on  demand,  the  railroad  corporation  must 
pay  to  such  passenger  the  sum  of  twenty  dollars,  to  be  recovered 
in  an  action  for  damages ;  and  no  fare  or  toll  must  be  collected 
or  received  from  such  passenger,  and  if  such  passenger  has  paid 
his  fare,  the  same  must  be  returned  by  the  conductor  in  charge 
of  the  train  ;  and  on  producing  the  check,  if  his  bagggage  is  not 
delivered  to  him  by  the  agent  or  employee  of  the  railroad  cor- 
poration, he  may  recover  the  value  thereof  from  the  corporation. 
Enacted  March  21,  1872. 
120  Cal.  317. 

Annual  report  to  be  vei  ified — Form  of  report. 

§  480.  Every  railroad  corporation  must  make  an  annual 
report  to  the  secretary  of  state,  or  other  officer  designated  by 
law,  of  its  operations  for  each  year,  ending  on  the  thirty-first 
day  of  December,  verified  by  the  oaths  of  the  president  or  acting 
superintendent  of  operations,  the  secretary  and  treasurer  of 
such  corporation,  and  tile  it  in  the  office  of  the  secretary  of  state, 
or  such  other  designated  officer,  by  the  twentieth  day  of  Febru- 
ary, which  must  state : 

1.  The  capital  stock,  and  the  amount  thereof  aelually  paid  in; 

2.  The  amount  expended  for  the  purchase  of  lands  for  the 
construction  of  the  road,  for  buildings,  and  for  engines  and  cars, 
respectively ; 

3.  The  amount  and  nature  of  its  indebtedness,  and  the 
amount  due  the  corporation  ; 

4.  The  amount  received  from  the  transportation  of  passen- 
gers, property,  mails,  and  express  matter,  and  from  other 
sources ; 

5.  The  amount  of  freight,  specifying  the  quantity  in  tons ; 

6.  The  amount  paid  for  repairs  of  engines,  cars,  buildings, 
and  other  expenses  in  gross,  showing  the  current  expenses  of 
running  such  road  ; 

7.  The  number  and  amount  of  dividends,  and  when  paid  ; 

8.  The  number  of  engine  liouses  and  shops,  of  engines  and 
cars,  and  their  character. 

Enacted  March  21,  1872. 

Duties  of  corporation. 

§481.  Every  such  corporation  must  start  and  run  its  cars, 
for  the  transportation  of  per.sous  and  property,  at  such  regular 


134  riviL  CODE.  §  481 

times  as  it  shall  fix  by  public  notice,  aud  must  furnish  sufficient 
accommodations  for  the  transportation  of  all  such  passengers 
and  property  as,  within  a  reasonable  time  previous  thereto, 
offer  or  are  offered  for  transportation,  at  the  place  of  starting, 
at  the  junction  of  other  railroads,  and  at  siding  and  stopping- 
places  established  for  receiving  and  discharging  way  passengers 
and  freight ;  and  must  take,  transport,  and  discharge  such  pas- 
sengers aud  property  at,  from,  and  to  such  places,  on  the  due 
payment  of  tolls,  freight,  or  fare  therefor. 

Amended  March  21,  1905  ;  stats.  1905,  p.  575. 

134  Cal.  414 ;  142  Cal.  392 ;  3  Cal.  App.  083. 

Note. — §  481.  The  amendment  consists  in  the  substitution  of 
the  word  "its"  for  "their,"  and  the  substitution  of  "it"  for 
"they,"  thus  correcting  errors  of  grammar. 

Time  tables,  etc. :  See  Civ.  C.  §§  2170,  2172,  and  2190. 

See,  also,  for  accommodations.  Civ.  C.  §  2185. 

Rules  and  regulations  :   See  Civ.  C.  §  484. 

Corporation  to  pay  damages  for  refusal. 

§  482.  In  case  of  refusal  by  such  corporation  or  their  agents 
so  to  take  and  transport  any  passengers  or  property,  or  to 
deliver  the  same,  at  the  regular  appointed  places,  such  corpora- 
tion must  pay  to  the  party  aggrieved  all  damages  which  are 
sustained  thereby,  with  costs  of  suit. 

Enacted  March  21,  1872. 

142  Cal.  392 ;  3  Cal.  App.  083. 

See,  also,  Civ.  C.  §  2109. 

.f^urnish     room     inside    passenger    cars,    and     be    responsible    for 
damages  occurring  on  freight  and  other  cars. 

§  483.  Every  railroad  corporation  must  furnish,  on  the  inside 
of  its  passenger  cars,  sufficient  room  and  accommodations  for  all 
passengers  to  whom  tickets  are  sold  for  any  one  trip,  aud  for  all 
persons  presenting  tickets  entitling  them  to  travel  thereon  ;  and 
when  fare  is  taken  for  transporting  passengers  on  any  baggage, 
wood,  gravel,  or  freight  car,  the  same  care  must  be  taken  and 
the  same  responsibility  is  assumed  by  the  corporation  as  for 
passengers  on  passenger  cars. 

Enacted  March  21,  1872. 

70  Cal.  173;  1  Cal.  App.  347. 

Accommodations  to  be  furnished:   See  Civ.  C.  §481. 


§  484  CIVIL  COUE. 


135 


Corporation  to  post  printed  regulations,  and  not  responsible  for 
damages  in  violation  of  rules. 

§  484.  Every  railroad  corporation  must  have  printed  and  con- 
spicuously posted  on  the  inside  of  its  passenger  cars  its  rules 
and  regulations  regarding  fare  and  conduct  of  its  passengers; 
and  in  case  any  passenger  is  injured  on  or  from  the  platform 
of  a  car,  or  on  any  baggage,  wood,  gravel,  or  freight  car.  in 
violation  of  such  printed  regulations,  or  in  violation  of  positive 
verbal  instructions  or  injunctions  given  to  such  passenger  in 
person  by  any  officer  of  the  train,  the  corporation  is  not  respon- 
sible for  damages  for  such  injuries,  unless  the  corporation  failed 
to  comply  with  the  provisions  of  the  preceding  section. 

Enacted  March  21.  1S72. 

7S  Cal.  864;  87  Cal.  7.3;  1  Cal.  App.  348. 

See,  also.  Civ.  C.  §  218*!. 

Fences — To  pay  damages — Not  liable  in  certain  cases — Corpora- 
tion may  recover  damages,  when. 
§  485.  Railroad  corporations  must  make  and  maintain  a 
good  and  sufficient  fence  on  either  or  both  sides  of  their  track 
and  property.  In  case  they  do  not  make  and  maintain  such 
fence,  if  their  engine  or  car.s  shall  kill  or  maim  any  cattle  or 
other  domestic  animals  upon  their  line  of  road  which  passes 
through  or  along  the  property  of  the  owner  thereof,  they  must 
pay  to  the  owner  of  such  cattle  or  other  domestic  animals  a  fair 
market  price  for  the  same,  unless  it  occurred  through  the  neglect 
or  fault  of  the  owner  of  the  animal  so  killed  or  maimed.  Rail- 
road corporations  paying  to  the  owner  of  the  land  through  or 
along  which  their  road  is  located  an  agreed  price  for  making 
and  maintaining  .«uch  fence,  or  paying  the  cost  of  such  fence 
with  the  award  of  damages  allowed  for  the  right  of  way  for 
such  railroad,  are  relieved  and  exonerated  from  all  claims  for 
damages  arising  out  of  the  killing  or  maiming  any  animals  of 
persons  who  thus  fail  to  construct  and  maintain  such  fence: 
and  the  owners  of  such  animals  are  responsible  for  any  damages 
or  loss  which  may  accrue  to  such  corporation  from  such  animals 
l)eing  upon  their  railroad  track,  resulting  from  the  non-con- 
struction  of   such   fence,    unless   it   is  shown   that   such   loss   or 


I3ti  CIVIL  CODE.  S  485 

damage  occurred  through  the  negligence  or  I'anlt  of  the  corpora- 
tion, its  officers,  agents,  or  employees. 
Enacted  March  21,  1872. 

04  Cal.  113 ;  05  Cal.  318 ;  80  Cal.  284  ;  94  Cal.  570 ;  104 
Cal.  28;  110  Cal.  450;  114  Cal.  508;  120  Cal.  518,  573; 
141  Cal.  289;  VII  Cal.  App.  Dec.  074,  075,  077. 

Regulations  of  trains — Penalty. 

§  486.  A  bell,  of  at  least  twenty  pounds  -weight,  must  be 
placed  on  each  locomotive  engine,  and  be  rung  at  a  distance  of 
at  least  eighty  rods  from  the  place  where  the  railroad  crosses 
any  street,  road,  or  highway,  and  be  kept  ringing  until  it  has 
crossed  such  street,  road,  or  highway  :  or  a  steam  whistle  must 
be  attached,  and  be  sounded,  except  in  cities,  at  the  like  dis- 
tance, and  be  kept  sounding  at  intervals  until  it  has  crossed  the 
same,  under  a  penalty  of  one  hundred  dollars  for  every  neglect, 
to  be  paid  by  the  corporation  operating  the  railroad,  which  ma\ 
be  recovered  in  an  action  prosecuted  by  the  district  attorney  oi" 
the  proper  county,  for  the  use  of  the  state.  The  corporation 
is  also  liable  for  all  damages  sustained  by  any  person,  and 
caused  by  its  locomotives,  train,  or  cars,  when  the  provisions  of 
this  section  are  not  complied  with. 
Enacted  March  21,  1872. 

52  Cal.  004 ;  01  Cal.  328  ;  85  Cal.  290 ;  80  Cal.  378  ;  98 
Cal.  311;  122  Cal.  507;  147  Cal.  027;  150  Cal.  703;  VII 
Cal.  App.  Dec.  328. 

Passengers  refusing  to  pay  fare. 

§  487.  If  any  passenger  refuses  to  pay  his  fare,  or  to  exhibit 
or  surrender  his  ticket,  when  reasonably  requested  so  to  do,  the 
conductor  and  employees  of  the  corporation  may  put  him  and 
his  baggage  out  of  the  cars,  using  no  unnecessary  force,  at  any 
usual  stopping  place,  or  near  any  dwelling  house,  on  stopping  the 
train. 

Enacted  March  21,  1872. 

05  Cal.  028 ;  97  Cal.  5  ;  145  Cal.  452  ;  1  Cal.  App.  348. 
See,  also.  Civ.  C.  §  2187  et  seq. 

Officers  to  wear   badge. 

§  488.  Every  conductor,  baggage  master,  engineer,  brakeman. 
or  other  employee  of  any  railroad  corporation,  employed  on  a 
passenger  train  or  at  stations  for  passengers,  must  wear  upon 


§  488  CIVIL  CODE.  137 

his  hat  or  cap,  or  in  some  conspicuous  place  on  the  breast  of 
his  coat,  a  badge,  indicating  his  office  or  station,  and  the  initial 
letters  of  the  name  of  the  corporation  by  which  he  is  employed. 
No  collector  or  conductor,  without  such  badge,  is  authorized  to 
demand  or  to  receive  from  any  passenger  any  fare,  toll,  or 
ticket,  or  exercise  any  of  the  powers  of  his  office  or  station  ;  and 
no  other  officer  or  employee,  without  such  badge,  has  any  author- 
ity to  meddle  or  interfere  with  any  iiassengor  or  property. 
Enacted  March  21,  1872. 

109  Cal.  101 :  1  Cal.  App.  348. 

Rates  of  charges. 

§  489.  Whenever  the  board  of  railroad  commissioner.'^,  in  the 
discharge  of  its  duties,  establishes  or  adopts  rates  of  charges 
for  the  transportation  of  passengers  and  freight,  pursuant  to  the 
provisions  of  the  constitution,  said  board  must  serve  a  printed 
schedule  of  such  rates,  and  of  any  changes  that  may  bo  made 
in  such  rates,  upon  the  person,  co-partnership,  company  or 
corporation  affected  thereby ;  and  upon  such  service  it  is  the 
duty  of  such  person,  co-partnership,  company,  or  corporation  to 
immediately  cause  copies  of  the  same  to  be  posted  in  all  its 
offices,  station  houses,  warehoust-s.  and  landing  offices  affected 
by  such  rates,  or  change  of  rat<'s.  in  such  manner  as  to  be 
accessible  to  public  inspection  during  usual  business  hours. 
Said  board  must  also  make  surh  further  publication  thereof  as 
it  deems  proper  and  necessary  for  th(>  public  good.  If  the  party 
lo  be  served  is  a  corporation,  such  service  may  be  made  upon 
I  he  president,  vice-president,  secretary,  or  managing  agent 
thereof,  and  if  a  co-partnership,  upon  any  partner  thereof.  The 
rates  of  charges  established  or  adopted  by  said  board,  pursuant 
to  the  constitution  and  the  laws  of  this  state,  must  go  into  force 
and  effect  on  the  twentieth  day  after  service  of  such  schedule  of 
rates,  or  changes  in  rates,  upon  the  person,  co-partnership,  com 
pany,  or  corporation  affected  thereby. 

Amended  March  21,  1905 ;  stats.  1905,  p.  575. 
105  Cal,  545. 

Note. — §  489.  Section  11  of  the  statute  of  18S0,  page  4T, 
defining  the  powers  of  the  board  of  raih'oad  commissioners,  is 
substituted  in  place  of  the  old  section  489,  which  has  been  inop- 
erative since  the  adoption  of  the  constitution  of  1879. 

See  Railroad  Act  of  1909,  defining  powers  of  railroad  commi? 
sioners,  "Railroads,"  statutes  at  large.  Appendix. 


l.'iS  CIVIL    CODE.  S  490 

Passenger  tickets,  how  issued,  and  to  be  good  for  six  montlis. 

§  490.  Every  railroad  corporation  must  i>rovide,  and  on_  being 
tendered  the  fare  therefor  fixed,  as  provided  in  the  preceding 
section,  furnish  to  every  person  desiring  a  passage  on  their  pas- 
senger cars  a  ticlvet.  which  entitles  the  purchaser  to  a  ride,  and 
to  the  accommodations  provided  on  their  cars,  from  the  depot 
or  station  where  the  same  is  purchased  to  any  other  depot  or 
station  on  the  line  of  their  road.  Every  such  ticket  entitles  the 
holder  thereof  to  ride  on  their  passenger  cars  to  the  station  or 
depot  of  destination,  or  any  intermediate  station,  and  from  any 
intermediate  station  to  the  depot  of  destination  designated  in 
the  ticket,  at  any  time  within  six  months  thereafter.  Any  cor- 
])oration  failing  so  to  provide  and  furnish  tickets,  or  refusing  the 
l>assage  which  the  same  calls  for  when  sold,  must  pay  to  the 
person  so  refused  all  actual  damages  caused  thereby,  with  reason- 
able counsel  fees  expended  in  recovering  same. 

Amended  March  23,  1901  ;  stats  1901,  p.  600. 

10.5  Cal.  537;  132  Cal.  411,  413,  41G,  418,  420;  144  Cal. 
188. 

Character  of  Iron  rail  to  be  used. 

S  491.  All  railroads,  other  than  street  railroads  and  those 
used  exclusively  for  carrying  freight  or  for  mining  purposes, 
built  by  corporations  organized  under  this  chapter,  must  be 
constructed  of  the  best  quality  of  iron  or  steel  rail,  known  as 
.T  or  H  rail,  or  other  pattern  of  equal  utility. 

Amended  March  30,  1874:  amendts.  1873-4,  p.  212. 
132  Cal.  G78. 

Elevated  or  underground  railways. 

§  492.  The  legislative  or  other  body  to  whom  is  intrusted  the 
government  of  the  county,  city  and  county,  city,  or  town,  under 
such  regulations,  restrictions,  and  limitations,  and  upon  such 
terms  and  payment  of  license  tax  as  the  county,  city  and  county, 
city,  or  town  authority  may  provide,  may  grant  franchises  for 
the  construction  of  elevated  or  underground  railroad  ti'acks  over, 
across,  or  under  the  streets  and  public  highways  of  any  such 
county,  city  and  county,  city,  or  town,  for  the  term  not  exceed- 
ing fifty  years;  provhlcd.  that  before  granting  such  franchise 
(here  shall  be  presented  to  such  legislative  or  other  body  a 
petition  signed  by  the  owners  of  a  majority  of  the  landed  prop- 


§  492  CIVIL  CODE.  139 

prfy,   other   lliaii   public   iiroperty,   on    llio   lino, of  s.iid   olcvated 
portion  applied  for. 

Knncted  jNIarch  27.  189r, ;  stals.   1S9r..  p.  24  1. 

To  apply  to  all  railroad  companies. 

§  493.  The  provisions  of  section  four  hnndred  and  ninety-two 
shall  apply  to  any  railway  corporation  hei-etofore  or  hereafter 
incorporated. 

Amended  March  21.  1905 ;  stats.  1905,  p.  576. 

Note. — §  493.  The  change  consists  in  the  substitution  of  the 
words  "section  four  hundred  and  ninety-two"  in  place  of  "this 
act." 

§494.  [As  approved  March  22,  1899;  stats.  1899.  p.  178. 
Repealed  March  21,  1905;  stats.  1905,  p.  57G.] 

'  Note. — §  494.  In  1899  a  section  relating  to  the  sale  of  rail- 
roads was  added  to  the  code,  and  numbered  494.  In  1903  a 
new  section  was  added,  also  numbered  494,  and  clearly  intended 
to  supersede  the  old  section  494.  Accordingly,  it  is  thought 
advisable  to  repeal  the  earlier  section. 

Sale  of  property  to  another  railroad. 

§494.  xVny  railroad  corporation,  person  or  pcr.sons,  firm  or 
corporation,  owning  any  railroad  in  this  state,  may  sell,  con- 
vey, and  transfer  its  projierty  and  franchises,  or  any  part 
(hereof,  to  any  other  railroad  corporation,  whether  organizod 
under  the  laws  of  this  state  or  of  any  other  state  or  territory, 
or  under  any  act  of  congress;  and  any  other  such  railroad  cor- 
poration receis'ing  such  conveyance  ma.y  hold  and  operate  .such 
railroad  franchises  and  property  within  this  state,  build  and 
operate  extensions  and  branches  thereof,  and  thereunto  exercise 
the  right  of  eminent  domain,  and  do  any  other  business  in  con- 
nection therewith,  as  fully  and  effectually  to  all  intents  and 
purposes  as  if  such  corporation  were  organized  under  the  laws 
of  this  state ;  provided,  that  before  such  sale,  conveyance,  or 
transfer  shall  become  operative,  an  agreement  in  writing  must 
be  executed  by  the  parties  thereto,  containing  the  terms  and  con- 
ditions of  the  purchase  and  sale,  and  its  execution  must  bo 
authorized  by  the  board  of  dircctor.s  and  ratified  by  three  fourths 
of  the  stockholders  of  each  of  the  railroad  companies  that  are 
Iiarties  to  such  conveyance  and  transfer,  and  said  agreement  oi' 
conveyance  shall  bo  recorded  in  each  county  through  which  said 


140  CIVIL  CODE,  §  494 

load  or  roads  pass  in  lliis  state;  ami  [jiuctded  luillttr,  thai  uo 
sale,  conveyance,  or  transfer  under  this  act  shall  relieve  the 
franchise  or  property  sold,  conveyed,  or  transfen-ed,  from  the 
liability  of  the  grantor  contracted  or  incurred  in  the  operation, 
use,  or  enjoyment  of  such  franchise  or  any  of  its  privileges  ; 
provided,  that  this  section  shall  not  authorize  any  corporation 
to  purchase  any  railroad  property  operated  in  competition  with 
it;  and  provided  further,  that  any  or  all  established  rates  for 
fares  and  tolls  for  carrying-  passengers  or  freight  between  any 
points  upon  any  railroad  purchased  under  the  provisions  of  this 
act,  shall  not  be  increased  without  the  consent  of  the  govern- 
mental authority  in  which  is  vested  by  law  the  power  to  regula It- 
fares  and  freights ;  and  provided  further,  that  whenever  a  rail- 
road corporation,  which  has  purchased  any  line  of  road  undei- 
this  act,  shall  for  the  purposes  of  competing  with  any  other  com- 
mon carrier  lower  its  rates  for  transportation  of  passengers  or 
freight  from  one  point  to  another  upon  such  line  purchased, 
such  reduced  rates  shall  not  be  again  raised  or  increased  from 
such  standard  without  the  consent  of  the  governmental  authority 
in  which  shall  be  vested  the  power  to  regulate  fares  and  freights  ; 
and  provided  further,  that  for  every  violation  of  the  provisions 
of  this  act  on  the  part  of  the  directors  or  governing  officers  of 
said  corporation,  the  state  shall  be  entitled  to  recover  from  .sueli 
offending  railroad  company  the  sum  of  ten  thousand  dollars. 
It  is  hereby  declared  to  be  the  duty  of  the  attorney  general  of 
the  state,  in  the  event  of  any  such  violation,  to  demand  and 
collect  from  such  company  the  said  penalty  ;  and  he  is  hereby 
authorized  and  empowered  to  prosecute  all  the  necessary  actions 
in  the  name  of  the  people  of  the  State  of  California  against  such 
company  in  the  courts  of  the  state.  All  money  so  collected  shall 
be  paid  into  the  general  fund  of  this  state. 

Enacted  February  27,  1903;  stats.  1903,  j).  m. 


^  497  CIVIL  CODE  141 


TITLE  IV. 

Street  Railroad  Corporations. 

(For  acquisition  aud  sale  of  franchises,  see  "Franchists." 
statutes  at  large,  Appendix;  see,  also,  "Street  Railroads.") 

Sec.  497.      Authority  to  lay  street  railroad  track,  how  obtaiur-d. 
4ft8.     Restrictions  and  limitations  to  the  grant  of  the   rij^lil 
of  way.     Manner  of  constructing  tracks. 

499.  Two   corporations  may  use   the  same    track. 

500.  Crossing  tracks.     Obstructions. 
,'>01.     Rates  of  fare,  speed,  etc. 

502.  Time  allowed  for  completion  of  work  of  laying  down 

track.     Penalty.     Extension  of  time. 

503.  May  make  further  regulations  and  rules. 

504.  Penalty  for  overcharging. 

505.  To  provide  and  furnish  passenger  tickets.     Penalt.N'. 

506.  Agency,  proof  of,  in  case  of  trial. 

507.  City  or  town  to  reserve  certain  rights. 

508.  License  to  be  paid  to  city  or  town. 

509.  Track  for  grading  purposes. 

510.  W'^hat   provisions   of   title   III   are   applicable    to   street 

railroads. 

511.  Title  applicable  to  natural  persons  alike  with  corpora- 

tions. 

Authority  to  lay  street  railroad  track,  how  obtained. 

§  497.  Authority  to  lay  railroad  tracks  through  the  streets 
and  public  highways  of  any  incorporated  city,  city  and  county,  or 
Lowu,  may  be  obtained  for  a  term  of  years  not  exceeding  fifty, 
from  the  trustees,  council,  or  other  body  to  whom  is  intrusted 
the  government  of  the  city,  city  and  county,  or  town,  under  such 
restrictions  and  limitations,  and  upon  such  terms  and  payment 
of  license  tax  as  the  city,  city  and  county,  or  town  authority 
may  provide.  In  uo  ease  must  permission  be 'granted  to  propel 
cars  upon  such  tracks  otherwise  than  by  electricity,  horses, 
mules,  or  by  wire  ropes  running  under  the  streets  aud  moved 
by  stationary  engines,  unless  for  special  reasons  in  thi.s  title 
hereinafter  mentioned ;  provided,  hoiccvcr,  that  such  board  or 
body    in  granling   Die   right,  or  at   any   time  after  the  same   is 


142  CIVIL  CODE.  §  497 

^rauleil.  to  use  electricity  or  any  other  of  said  modes,  shall  have 
l)0vver  to  impose  such  terms,  restriclicjns,  and  limitations  as  to 
use  of  streets  and  the  construction  and  mode  of  oi)eratiug  such 
electric  and  other  roads  as  may.  by  such  board  or  body,  be 
deemed  for  the  public  safety  or  welfare.. 

Amended  February  25,  1891 ;  stats.  1891,  p.  12. 

57  Cal.  1G7,  175 ;  90  Cal.  38 ;  91  Cal.  340,  454 :  105  Cal. 

92 ;  117  Cal.  Gil ;  142  Cal.  228. 

Restrictions  and    limitations  to  the   grant   of   tlie   rlglit   of   way — 
Manner  of  constructing  tracks. 

§  498.  The  city  or  toM'n  authorities,  in  granting  the  right  of 
way  lo  street  railroad  corporations,  in  addition  to  the  rostrio- 
(ious  which  they  are  authorized  to  impose,  must  require  a  strict 
compliance  with  the  following  conditions,  except  in  the  cases  of 
prismoidal  or  other  elevated  railways.  In  such  cases,  said  rail- 
way shall  be  required  to  be  constructed  in  such  a  manner  as  will 
present  the  least  obstruction  to  the  freedom  of  the  streets  on 
which  it  may  be  erected  when  allowed  by  the  granting  power. 

First — To  construct  their  tracks  on  those  portions  of  streets 
designated  in  the  ordinance  granting  the  right,  which  must  be. 
as  nearly  as  possible,  in  the  middle  thereof. 

Second — To  plank,  pave,  or  macadamize  the  entire  length  of 
the  street  used  by  their  track,  between  the  rails,  and  for  two 
feet  on  each  side  thereof,  and  between  the  tracks,  if  there  be 
more  than  one,  and  to  keep  the  same  constantly  in  reiiair.  (lusii 
with  ihe  street,  and  with  good  crossings. 

Third — That  the  tracks  must  not  be  more  than  five  feet  w  ide 
within  the  rails,  and  must  have  a  space  between  them  sufficienl 
to  allow  the  cars  to  pass  each  other  freely. 

Amended  April  3,  1876 ;  amendts.  1875-6,  p.  77. 

57  Cal.  518 ;  87  Cal.  599 ;  89  Cal.  309 ;  146  Cal.  63S. 

Two  corporations  may  use  the  same 'track. 

§499.  Two  or  more  lines  of  street  railway,  operated  under 
different  managements,  may  by  lease  or  contract,  use  the  same 
street  or  tracks  upon  such  terms  as  may  have  been  agreed  upon 
between  the  companies  operating  such  railways;  and  two  lines 
of  street  railway  operated  under  different  managements  may  be 
permitted  to  use  the  same  street  or  tracks  for  a  distance  of 
live  blocks  without  such  lease  or  contract,  upon  payment  of  an 
e(|ual    portion    for   the   construction    of   the   tracks   and    ai)pur- 


§  4!>n  CIVIL  C()i>K.  143 

tenances  used  by.  such  railwaj's  jointly  ;  but  in  no  case  shall 
a  company  owning  or  operating  one  line  of  street  railway  be 
permitted  to  condemn  the  right  to  occupy  and  use  the  same  street 
or  tracks  for  a  distance  of  more  than  five  blocks  consecutively. 
Where  such  portion  of  such  street  shall  be  occupied  by  a  track 
or  tracks  of  a  different  guage  from  the  track  or  tracks  proposed 
to  be  constructed  thereon  by  a  line  of  street  railway  under 
a  different  management,  such  last  mentioned  line  of  street 
railway  may  nevertheless  construct  its  track  or  tracks,  sub- 
ject to  the  limitation  before  prescribed,  over  the  same  ground 
as  may  be  occupied  by  such  prior  track  or  tracks :  pro' 
tided,  the  same  can  be  so  constructed  as  not  to  interfere  with 
the  operation  of  such  prior  track  or  tracks  beyond  such  neces- 
sary interference  therewith  as  shall  be  incident  to  such  con- 
struction with  reasonable  skill,  care  and  diligence. 
Amended  March  21,  1907  ;  stats.  1907.  p.  837. 

54  Cal.  74;  57  Cal.  168;  91  Cal.  452;  115  Cal.  297;  129 

Cal.  182 ;  135  Cal.  650. 

Crossing  tracks — Obstructions. 

§  500.  Any  proposed  railroad  track  may  be  permitted  to  cross 
any  track  already  constructed,  the  crossing  being  made  as  pro- 
vided in  chapter  two,  title  three,  of  this  part.  In  laying  down 
the  track  and  preparing  therefoi-,  not  more  than  one  block  must 
be  obstructed  at  any  one  time,  nor  for  a  longer  period  than  ten 
working  days. 

Enacted  March  21,  1872. 

Crossing  other  railroads:  Civ.  C.  §4(55  ci  sc<i. 

Rates  of  fare,  speed,  etc. 

S  501.  The  i-ates  of  fare  on  the  ears  must  not  exceed  ten 
cents  for  one  fare  for  any  distance  under  three  miles,  and  in 
municipal  corporations  of  the  iirst  class  must  not  exceed  five 
cents  for  each  passenger  per  trip  of  any  distance  in  one  direction, 
either  going  or  coming,  along  any  part  of  the  whole  length  of  the 
road  or  its  connections.  The  car.s  must  be  of  the  most  approved 
construction  for  the  comfort  and  convenience  of  passengers,  and 
provided  with  brakes  to  stop  the  same,  when  required.  A  viola- 
tion of  the  provisions  of  this  section  subjects  tho  rorporntion 
to  a  tine  of  one  Inuidred  dollars  for  each  f)ffense. 

Amended  .March  16,  1903:  stat.s.  1903,  p.  172. 
97  Cal.  5()3';  134  Cal.  485. 


144  CIVIL  CODE.  §  502 

Brakes,  fenders,  etc..  failure  to  provide  :  Pen.  O.  §  369a. 
Refusal  to  take  passengers :  Pen.  C.  §  365. 
Railroad  corporations,  rates  of  fare :  Civ.  C.  §  489. 

Time    allowed    for    completion    of    work    of  .laying    down    track — 
Penalty — Extension  of  time. 

§  502.  Work  to  construct  tlie  railroad  must  be  commenced  in 
good  faith  within  not  more  than  one  year  from  the  date  of  the 
taking  effect  of  the  ordinance  granting  the  right  of  way,  and 
said  work  must  be  completed  within  not  more  than  three  years 
after  the  taking  effect  of  such  ordinance ;  provided,  that  the 
governing  body  of  such  municipal  corporation  at  the  time  of 
granting  said  right  of  way  shall  have  the  power  to  fix  the  time 
for  either  the  commencing  or  completion,  or  both,  of  said  work ; 
not,  however,  to  a  time  less  than  six  months  for  commencing, 
and  not  less  than  eighteen  months  for  completing  the  same.  A 
failure  -to  comply  with  either  of  the  foregoing  provisions  of 
this  section,  or  with  either  of  the  provisions  of  the  ordinance 
granting  said  right  of  way,  works  a  forfeiture  of  the  right  of 
way,  and  also  of  the  franchise,  unless  the  uncompleted  portion 
is  abandoned  by  the  person  or  corporation  to  whom  said  right 
of  way  is  granted,  with  the  consent  of  the  authorities  granting 
the  right  of  way,  such  abandonment  and  consent  to  be  in  writ- 
ing. The  authority  granting  the  right  of  way  shall  have  the 
pov^'er  to  grant  an  extension  of  time  for  the  completion  of  said 
work,  if  it  appear  that  the  work  has  been  commenced  within 
the  time  fixed,  and  prosecuted  in  good  faith  ;  but  no  extension  of 
lime  shall  be  granted  for  the  commencement  of  said  work,  and 
shall  not  be  granted  for  more  than  one  year  for  the  completion 
(if  the  same.  All  extensions  of  time  shall  be  in  writing,  and 
made  a  matter  of  record  in  the  municipality  ;  provided  further, 
that  this  act  shall  not  in  any  way  affect  any  franchise  or  right 
of  way  granted  before  its  passage. 

Amended  February  25,  1895 ;  stats.  1895.  p.  17. 

57  Cal.  178;  91  Cal.  341;  101  Cal,  337:  117  Oal.  611; 
152  Cal.  244,  245. 

See,  also,  Civ.  C.  §§  358  and  468. 

May  make  further  regulations  and  rules. 

§  503.  Cities  and  towns  in  or  through  which  street  railroads 
rim  may  make  such  further  regulations  for  the  government  of 
such  street  railroads  as  may  be  necessary  to  a  full  enioymeut  of 


§  503  .  CIVIL  CODE.  145 

the   fi-auohise   and   the   enforcement   of   the   conditions  provided 
herein. 

Enacted  March  21,  1872. 
128  Cal.  436. 

Penalty  for  overcharging. 

§  504.  Any  corporation,  or  agent  or  employee  tliereof,  demand- 
ing or  charging  a  greater  sum  of  money  for  fare  on  the  cars 
of  such  street  railroad  than  that  fixed,  as  provided  in  this 
title,  forfeits  to  the*  person  from  whom  such  sum  is  received, 
or  who  is  thus  overcharged,  the  sum  of  two  hundred  dollars,  to 
be  recovered  in  a  civil  action,  in  any  justice's  court  having 
jurisdiction  thereof,  against  the  corporation. 

Enacted  March  21,  1872. 

To   provide  and  furnish    passenger  tickets — Penalty. 

§  505.  Every  street  railroad  corporation  must  pi'ovide,  and 
on  request  furnish  to  all  persons  desiring  a  passage  on  its  cars, 
any  required  quantity  of  passenger  tickets  or  checks,  each  to  be 
good  for  one  ride.  Any  corporation  failing  to  provide  and 
furnish  tickets  or  checks  to  any  person  desiring  to  purchase  the 
same,  at  not  exceeding  the  rate  hereinbefore  described,  shall 
forfeit  to  such  person  the  sum  of  two  hundred  dollars,  to  be 
recovered  as  provided  in  the  preceding  section  ;  provided,  that 
the  provisions  of  this  section  shall  not  apply  to  such  street  rail- 
road corporations  as  charge  but  five  cents  fare. 

Amended  March  13,  1883 ;  stats.  1883,  p.  84. 

See,  also.  Pen.  C.  §  3G5. 

Agency,  proof  of,  in  case  of  trial. 

§  506.  Upon  the  trial  of  an  action  for  any  of  the  sums  for- 
feited, as  provided  in  the  two  preceding  sections,  proof  that  the 
person  demanding  or  receiving  the  money  as  fare,  or  for  the 
sale  of  the  ticket  or  check,  was  at  the  time  of  making  the 
demand  or  receiving  the  money,  engaged  in  an  ofiice  of  the  cor- 
poration, or  vehicle  belonging  to  the  corporation,  shall  be  prima 
facie  evidence  that  such  person  was  the  agent,  servant,  or 
employee  of  tlio  corporation,  to  receive  the  money  and  give  the 
ticket  or  check  mentioned. 

Amended  March  •',(),  1S74  ;  aniendts.   1873-4,  p.  213. 


( — CL. 


14G  CIVIL  CODE.  .  §  507 

City  or  town  to  reserve  certain  rights. 

§  507.  In  every  grant  to  construct  street  railroads,  the  right 
to  grade,  sewer,  pave,  macadamize,  or  otherwise  improve,  alter, 
or  repair  the  streets  or  highways,  is  reserved  to  the  corporation, 
and  can  not  be  alienated  or  impaired ;  such  work  to  be  done  so 
as  to  obstruct  the  railroad  as  little  as  possible ;  and,  if  required, 
the  corporation  must  shift  its  rails  so  as  to  avoid  the  obstruc- 
tions made  thereby. 

Amended  March  30,  1874;  aniendts.  1873-1,  p.  214. 

License  to  be  paid  to  city  or  town. 

§  508.  Each  street  railroad  corporation  must  pay  to  the 
authorities  of  the  city,  town,  county,  or  city  and  county,  as  a 
license  upon  each  car,  such  sum  as  the  authorities  may  fix, 
not  exceeding  fifty  dollars  per  annum  in  the  city  of  San  Fran- 
cisco, nor  more  than  twenty-live  dollars  per  annum  in  other 
cities  or  towns.  Where  any  street  railroad  connects  or  runs 
through  two  or  more  cities  or  towns,  a  proportionate  or  equal 
share  of  such  license  tax  must  be  paid  to  each  of  thf»  cities  or 
towns;  and  no  such  license  tax  is  due  the  county  authorities 
where  the  same  is  paid  to  any  city  or  town  authority. 

Enacted  March  21,  1872. 

Track  for  grading  purposes. 

§  509.  The  right  to  lay  down  a  track  for  grading  purposes, 
and  maintain  the  same  for  a  period  not  to  exceed  three  years, 
may  be  granted  by  the  corporate  authorities  of  any  city  or  town, 
m-  cily  and  county,  or  supervisors  of  any  city  or  county,  but 
iiu  surli  track  nui.st  remain  more  than  three  years  upon  any  one 
street;  and  it  must  be  laid  level  with  the  street,  and  must  he 
operated  under  such  restrictions  as  not  to  interfere  with  the 
use  of  the  street  by  the  public.  The  corporation  authorities  of 
any  city  or  town,  or  city  and  county,  may  grant  the  right  to 
use  steam  or  any  other  motive  power  in  propelling  the  cars 
used  on  such  grading  track,  when  public  convenience  or  utility 
demands  it,  but  the  reasons  therefor  must  be  set  forth  in  the 
ordinance,  and  tlie  right  to  rescind  the  ordinance  at  any  time 
reserved. 

Enai-t(Ml  Mil  nil  21.    1S72. 


?  niO  CIVIL   CODE.  147 

What   pfovisions   of  title    III    are   applicable   to   street   railroads. 

§  510.  .Sti'ceL  railroads  are  governccl  by  Llu'  provisions  of 
title  three  of  this  part,  so  far  as  they  are  applicaldo,  unless 
such   railroads   are   therein   specially   excepted.   - 

Amended  March  30,  187-4;  amendts.  1S73-4.  p.  214. 

[Title  III.     See  §454  ct  scq.]  ' 

109  Cal.  577;  125  Cal.  454;  153  Cal.  507. 

Title  applicable  to   natural   persons  alike  with  corporations. 

§511.  When  a  street  railroad  is  constructed,  owned,  or 
operated  by  any  natural  person,  this  title  is  applicable  to  sudi 
person  in  like  manner  as  it  is  applicable   (o  corporations. 

Enacted  March  21 ,  1872. 

OS  Tal.  314:  153  Cal.  507. 


TITLE  V. 
Wagon  Road  Corporations. 

(Toll  roads:   See  Pol.  C.  §§2779  to  2832.) 

Sec.  512.     Wagon  roads,  how  must  be  laid  out. 

513.  .Sui'vey  and  map   to  be   filed   and   appro\od    by    super- 

visors. 

514.  Tolls,  etc.,  to  be  collected.     Penalty  for  taking  Tuilaw- 

ful  tolls. 

515.  No  tolls  to  be  charged  on  highways  or  public  roads. 

516.  Rates  of  toll  to  be  posted  at  gate. 

517.  Toll-gatherer  may  detain  persons  until  they  pay  tolls. 

518.  Toll-gatherer  not  to  detain  any  person  unreasonably. 

519.  Persons  avoiding  tolls  to  pay  five  dollars. 

520.  Penalties  for  trespasses  on  property  of  corporation. 

521.  When  capital  invested  is  repaid,  tolls  to  be  reduced,  etc. 

522.  May  mortgage  and  hypothecate  corporate  property. 

523.  This  title   applies   to   natural   per.sons   as   well   as  cor- 

porations. 

524.  Municipal  corporations  may  construct  paths  and  roads 

for  u.se  of  bicycles  and  other  horseless  vehicles. 

Wagon  roads,   how  must  be  laid  out. 

§  512.  Where  a  corporation  is  formed  for  the  construction 
and  maintenance  of  a  wagon  road,  the  road  must  be  laid  out  as 
follows  :  Three  commissioners  must  act  in  conjunction  with  the 
surveyor  of  the  corjioration,  two  to  be  appointed  by  the  board 


148  CIVIL   CODE.  §  512 

of  supervisors  of  tlie  coimty  through  which  the  road  is  to  run, 
and  one  by  the  oorporatibn,  who  must  lay  out  the  proposed 
road,  and  report  their  proceedings,  together  with  (he  map  of 
the  road,  to  the  supervisors,  as  provided  in  the  succeeding 
section. 

Amended  March  30,  1874;  amendts.  1873-4,  p.  214. 
95  Cal.  86. 

See,  also,  Civ.  C.  §§  291-294 ;  Pol.  C.  §  2619. 

Survey  and  map  to  be  filed  and  approved  by  supervisors. 

§513.  When  the  route  is  surveyed  a  map  thereof  must  l)e 
submitted  to  and  filed  with  the  board  of  supervisors  of  each 
county  through  or  into  which  the  road  runs,  giving  its  general 
course,  and  the  principal  points  to  or  by  which  it  runs,  and  its 
width,  which  must  in  no  case  exceed  one  hundred  feet,  and 
the  supervisors  must  either  approve  or  reject  tliQ  survey.  If 
approved,  it  must  be  entered  of  record  on  the  journal  of  the 
board,  and  such  approval  authorizes  the  use  of  all  public  lands 
and  highways  over  which  the  survey  runs ;  but  the  board  of 
supervisors  must  require  the  corporation,  at  its  own  expense, 
and  the  corporation  must  so  change  and  open  the  highways 
so  taken  and  used  as  to  make  the  same  as  good  as  before  the 
appropriation  thereof ;  and  must  so  construct  all  crossings  of 
public  highways  over  and  by  its  road  and  toll  gates,  as  not  to 
hinder  or  obstruct  the  use  of  the  same. 

Amended  March  21,  1905;  stats.  1905,  p.  577. 

Note. — §  513.  The  change  consists  in  the  omission  of  the 
words  "they  were"  before  the  word  "before."  The  omission  does 
not  change  the  meaning  of  the  section. 

Tolls,  etc.,  to  be  collected — Penalty  for  taking  unlav»/ful  tolls. 

§  514.  All  wagon  road  cox'porations  may  bridge  or  keep  ferries 
on  streams  on  the  line  of  their  road,  and  must  do  all  things 
necessary  to  keep  the  same  in  repair.  They  may  take  such 
tolls  only  on  their  roads,  ferries,  or  bridges,  as  are  fixed  by 
the  board  of  supervisors  of  the  proper  county  through  which 
the  road  passes,  or  in  which  the  ferry  or  bindge  is  situate. 
But  in  no  case  must  the  tolls  be  more  than  sufficient  to  pay 
fifteen  per  cent,  nor  less  than  ten  per  cent  per  annum,  on  the 
cost  of  construction,  after  paying  for  repairs  and  other  expenses 
for  attending  to  the  roads,  bridges,  or  ferries.     If  tolls,   other 


§  514  CIVIL  CODE.  149 

lliaii  ns  luTciu  i)rnviclod.  ore  ehni'sod  oi-  (k>iDaii<le(l.  the  coi'pora- 
don  forfeits  its  fraucliise,  and  must  pay  to  the  party  so  cUarued 
one  hundred  dollars  as   litiuidalcd   damages. 

Ameudod  Marcli  21.   liXt". ;  stats.  100,"..  p.  r>77. 
88  Cal.  683. 

Note. — §  514.  The  change  consists  in  tlie  omission  of  tliat 
part  of  tlie  section  excepting  from  its  operation  tlie  counties  of 
Butte,  Del  Norte,  Humboldt,  Klamatli,  Plumas,  and  Sierra. 

Franchises  :  Pol.  C.  §§  3378  and  4041. 
General  regulalious :   See  Pen.  C.  §§  380.  387,  388,  38!). 
Sale  of  francliise  under  execution:  Civ.  C.  §388. 
See.  also,  "Brid.i;('s.'"  slatutes  at  lar.i;e,  Aiipciidix. 

No  tolls  to  be  charged  on  highways  or  public  roads. 

§  515.  When  any  highway  or  puhlic  road  is  taken  .■md  used 
i)y  any  wagon  road  corporation  as  a  part  of  its  road,  the  cor- 
poration must  not  place  a  toll  gate  on  or  take  tolls  for  the  use 
of  such  highway  or  puhlic  road  hy  teamsters,  travelers,  drovers, 
or  any  one  transporting  property  over  the  same. 

Enacted  March  21,  1872. 
Rates  of  toll  to  be  posted  at  gate. 

§  516.  The  corporation  must  affix  and  keep  up,  at  or  over 
each  gate,  or  in  some  conspicuous  place,  so  as  to  he  con- 
veniently read,  a  printed  list  showing,  first,  the  date  when  the 
franchise  or  privilege  under  which  the  right  to  collect  tolls  is 
claimed,  was  gi'auted  and  the  term  of  duration  of  said  fran- 
chise ;  second,  the  date  upon  which  rates  of  tolls  were  last 
fixed  hy  the  hoard  of  supervisors ;  and,  third,  the  rates  of 
tolls  levied  and  demanded.  Failure  to  comply  with  the  pro- 
visions of  this  act  shall  work  an  immediate  forfeiture  of  fran- 
chise. 

Amended  February  14.  1901  ;  stats.  1901,  p.  .5. 
Toll-gatherer  may  detain  persons  until  they  pay  tolls. 

§  517.  Each  toll-gatherer  may  prevent  from  passing  througli 
his  gate  any  person,  animal,  or  vehicle,  subject  to  toll,  until 
the  toll  authorized  to  be  collected  for  such  passing  has  been 
paid. 

Amended  iVIarch  21,  1905  ;  stats.  1905,  p.  577. 

Note. — §517.  The  section  as  it  stood  authorized  the  toll- 
gatherer  to  prevent  from  passing  through  his  gate  persons  leading 
or  driving  animals  or  vehicles  subject  to  toll.  Tlie  form  of  the 
.section  has  been  changed  to  express  what  was  doubtless  orig- 
inally intended  by  the  legislature. 


150  CIVIL   CODE.  §  518 

Toll-gatherer  not  to  detain  any  person   unreasonably. 

S  518.  Every  loll-gnthoriT  vvlio,  at  any  salr,  iini-casouably 
lundcrs  or  delays  any  travdt'r  or  passenger  or  any  vc^hicle  or 
animal  liable  lo  the  payment  of  toll,  or  demands  or  receives 
from  any  person  more  than  he  is  authorized  to  collect,  for  each 
offense  forfeits  the  sum  of  twenty-five  dollars  to  the  person 
aggrieved. 

Amended  March  21,  1905;  stats.  1005,  p.  578. 
51  Cal.  400. 

Note. — §  518.  The  change  consists  in  the  insertion  of  the 
words  "or  an,y  veliirlo  or  animal"  after  "passenger." 

Persons  avoiding  tolls  to  pay  five  dollars. 

§  519.  Every  person  who,  to  avoid  the  payment  of  the  legal 
toll,  with  his  team,  vehicle,  or  horse,  turns  out  of  a  wagon, 
turnpike,  or  plank  road,  or  passes  any  gate  thereon  on  ground 
adjacent  thereto,  and  again  enters  upon  such  road,  for  each 
offense  forfeits  the  sum  of  five  dollars  to  the  corporation  injured. 

Enacted  March  21,  1872. 

Penalties  for  trespass  on   property  of  corporation. 
§  520.     Every  person  who  : 

1.  Willfully  breaks,  cuts  down,  defaces,  or  injures  any  mile- 
stone or  post  on  any  wagon,  turnpike  or  plank  road  ;  or. 

2.  Willfully  breaks  or  throws  down  any  gate  on  such  road  ; 
or, 

3.  Digs  up  or  injures  any  part  of  such  road  or  anything 
thereunto  belonging ;    or, 

4.  Forcibly  or  fraudulently  passes  any  gate  thereon  without 
having  paid  the  legal  toll ; 

For  each  offense  forfeits  to  the  corporation  injured  the  sum 
of  twenty-five  dollars,  in  addition  to  the  damages  resulting 
from  his  wrongful  act. 

Enacted  March  21,  1872. 

When  capital   invested   is  repaid,  tolls  to  be  reduced,  etc. 

§521.  The  entire  revenue  derived  from  the  road  shall  be 
appropriated :  first,  to  repayment  to  the  corporation  of  the 
costs  of  its  construction,  together  with  the  incidental  expenses 
incurred  in  collecting  tolls  and  keeping  the  road  in  repair;  and, 
second,  to  the  payment  of  the  dividend  among  its  stockholders, 
as   provided   in  section   five   hundred  and   fourteen.      When   the 


§  521  CIVIL  CODE.  151 

repayment  of  the  cost  of  construction  is  completed,  the  tolls 
must  be  so  reduced  as  to  raise  no  more  than  an  amount  suf- 
ficient to  pay  said  dividend,  and  incidental  expenses,  and  to 
keep  the  road  in  good  repair. 

Amended  March  30,  1S74 ;  amendts.  1873-4,  p.  215. 

May  mortgage  and  hypothecate  corporate  property. 

§  522.  The  corporation  may  mortgage  or  hypothecate  its 
road  and  other  property  for  funds  with  which  to  construct  or 
repair  its  road,  but  no  mortgage  or  hypothecation  is  valid  or 
binding  unless  at  least  twenty-five  per  cent  of  the  capital  stock 
subscribed  has  been  paid  in  and  invested  in  the  construction 
of  the  road  and  appurtenances,  and  then  only  after  an  affirm- 
ative vote  of  two  thirds  of  the  capital  stock  suliscriljcd. 

Amended  March  21,  1905;  stats.  1905.  p.  57S. 
80  Cal.  341. 

Note. — §  522.  The  change  consists  in  tlie  sub.stitution  of  tlie 
word  "its"  in  place  of  "their,"  thus  correcting  an  error  of  gram- 
mar. 

This  title  applies  to  natural  persons  as  well  as  corporations. 

§  523.  When  a  wagon,  turnpike,  or  plank  road  is  constructed, 
owned,  or  operated  by  any  natural  person,  this  title  is  applicable 
to  such  person  in  like  manner  as  it  is  applicable  to  corporations. 

Enacted  March  21,  1872. 

79  Cal.  168 ;  80  Cal.  341 ;  98  Cal.  313. 

Municipal  corporations  may  construct  paths  and  roads  for  use 
of  bicycles  and  other  horseless  vehicles. 
>!  524.  The  legislative  or  other  body  to  whom  is  iiitruslnl 
Hk!  government  of  any  county,  city  and  county,  city,  or  ti)wii, 
maj',  under  such  regulations,  restrictions,  and  limitations  as 
it  may  provide,  subject  to  existing  laws,  grant  franchises  for 
the  construction  of  paths  and  roads,  either  on  the  surface, 
elevated,  or  depressed,  on,  over,  across,  or  under  the  streets 
and  public  highways  of  any  such  county,  city,  or  town,  for  the 
use  of  bicycles,  tricycles,  motorcycles,  and  other  like  horseless 
vehicles,  for  a  term  not  exceeding  fifty  years.  In  incorporated 
cities  no  franchise  must  I)e  granted  for  tin-  jjurposc  licrein 
expressed,  imless  the  consent  in  writing  of  llir  owners  of  ;i 
majority  of  the  frontage   upon    the    road   or  street    along   wliieh 


ir)2  CIVIL  CODE.  §524 

said  path  or  road  is  sought  to  be  constructed,  is  first  had  and 
o1)tained,    and    filed    with    such    legishitive    or    governing    body. 

Enacted  March  21,  1905;  stats.  1905,  p.  57S. 

See,  also,  Pol.  C.  §§  4041  and  4047. 

Note. — §  524.  The  statute  of  1897,  page  191,  authorizing 
municipal  corporations  to  construct  paths  and  roads  for  the 
use  of  bicycles  and  otliei-  horseless  vehicles,  is  codified  in  this 
section. 

TITLE  VI. 
Bridge,  Ferry,  Wharf,  Chute,  and  Pier  Corporations. 

(L'ublic  ferries  and  toll  bridges:  I'ol.  ('.  §2843  et  seq.;  sec, 
also  Pol.  C.  §§3378  and  4041;  see,  also,  "Bridges,"  statutes  at 
large,  Appendix.) 

Sec.  528.     Corporation  to  obtain  license  from  supervisors. 
529.     In  wluit  contingencies  corporate  existence  ceases. 
5  30.     President   and    secretary   to   make   annual    report,    and 

what  to  contain.     Damages  for  failing  to  report. 
531.     Tills  title  to  apply  to  natural  persons  alike  with  cor- 
porations. 

Corporation  to  obtain  license  from  supervisors. 

§  528.  No  corporation  must  construct,  or  take  tolls  on,  a 
bridge,  ferry,  wharf,  chute,  or  pier  until  authority  is  granted 
therefor  by  the  supervisors,  or  other  governing  body  having 
autliority  in  that  behalf. 

Amended  March  21,  1905  ;  stats.-  1905.  p.  579. 
13G  Cal.  49. 

Note. — §  528.  Tlie  change  consists  in  tlie  insertion  of  the 
words  "or  other  governing  body  having  autliority  in  tliat  Ijclialf," 
after  "supervisors." 

Penalty  for  taking  toll  without  authority  :  Pen.  C.  §  886. 

Refusing  to  pay  toll:  Pen.  C.  §388. 

In  what  contingencies  corporate  existence   ceases. 

§  529.  Every  such  corporation  ceases  to  be  a  body  cor- 
porate : 

1.  If,  within  si.\  uiontlis  froni  tiling  its  articles  of  incor- 
poration, it  has  not  obtained  such  authority  from  the  board  of 
supervisors,  or  other  governing  body  having  authority  in  that 
behalf;  and  if,  within  one  year  thereafter,  it  has  not  commenced 
the    construction    of    the    bridge,    wharf,    chute,    or    pier,    and 


§  529  CIVIL  CODE.  153 

actually  expended  tliereou  at  least  ten  per  cent  of  the  capital 
stock  of  the  corporation  ; 

2.  If,  within  three  years  from  filing  the  articles  of  incor- 
poration, the  bridge,  wharf,  chute,  or  pier  is  not  completed ; 

3.  if,  when  the  bridge,  whai-f,  chute,  or  pier  of  the  corpo- 
ration is  destroyed,  it  is  not  reconstructed  and  ready  for  use 
within  three  years  thereafter ; 

4.  If  the  ferry  of  any  such  corporation  is  not  in  running 
order  within  three  months  after  authority  is  obtained  to  estab- 
lish it,  or  if  rtt  any  time  thereafter  it  ceases  for  a  like  term 
consecutively  to  perform  the  duties  imposed  by  law. 

Amended  March  21.  1905 ;  stats.  1905,  p.  579. 

See,  also,  Pol.  C.  §  2G19. 

Violation  of  conditions  of  franchise,  etc.  :  Pen.  C.  §  387. 

Note. — §  529.  The  change  consists  in  tlic  insertion  of  the 
words  "or  other  governing  body  liaving  autliority  in  tliat  behalf," 
after  "supervisors." 

President  and  secretary  to  make  annual  report,  and  what  to 
contain — Damages  for  failing  to  report. 
§  530.  The  president  and  secretary  of  every  bridge,  ferry, 
wharf,  chute,  or  pier  corporation  must  annually,  under  oath, 
report  to  the  board  of  supervisors,  or  other  governing  body 
having  authority  in  that  behalf,  of  the  county  in  which  the 
articles  of  incorporation  are  filed  : 

1.  The  cost  of  constructing  and  providing  all  necessary 
appendages  and  appurtenances  for  its  bridge,  ferry,  wharf, 
chute,  or  pier ; 

2.  The  amount  of  all  moneys  expended  ther(>on,  since  its 
construction,  for  repairs  and  incidental  expenses : 

3.  The  amount  of  its  capital  stock,  how  much  paid  in,  and 
how  much  actually  expended  thereof  ; 

4.  The  amount  received  during  the  year  for  tolls,  and  from  all 
other  sources,  stating  each  separately  ; 

5.  The  amount  of  dividends  made,  and  the  indebtedness  of 
the  corporation,  specifying  for  what  it  was  incurred  ; 

G.  Such  other  facts  and  particulars  respecting  the  business 
of  the  corporation,  as  the  board  of  supervisors  or  other  gov- 
erning body  having  authority  in  that  behalf  may  require. 

This  report  the  president  and  secretary  must  cause  to  be  pub- 
lished for  four  weeks  in  a  daily  newspaper  published  nearest 
the  bridge,  ferry,  wharf,  pier,  or  chute,  if  required  by  order 
of   the   board   of   supervisors   or   other   governing    body    having 


154  fivn,  CODE.  §  530 

uulhority  in  that  hdialf.  A  failure  to  make  such  ropoi-t  subjects 
the  corporal iou  to  a  penalty  of  two  hundred  doHars,  and  for 
every  week  permitted  to  ehipse  after  sucli  failure  an  additional 
penalty  of  fifty  dollars,  payable  in  each  case  to  the  county 
from  which  the  authority  of  the  corporation  was  derived.  All 
such  cases  must  be  reported  by  the  board  of  supervisors,  or 
other  governing  body  having  authority  in  that  behalf,  to  the 
district  attorney  or  city  attorney,  who  must  commence  an  action 
tlierefor. 

Amended  March  21,  l!)Or>;  stats.  190"),  p.  579. 

Note. — §  530.  The  change  con.sists  in  the  hisertion  of  tlie 
words  "or  other  governhig  body  liaving  authority  in  that  behalf," 
after  "supervisors." 

This  title  to  apply  to  natural   persons  alike  with  corporations. 

§531.  When  a  bridge,  ferry,  wharf,  chute,  or  pier  is  con- 
structed, operated,  or  owned  by  a  natural  person,  this  title  is 
applicable  to  such  person  in  like  manner  as  it  is  applicable  to 
corporations. 

Enacted  March  21.  1872. 
98  Cal.  314. 

Public  ferries  and  toll  bridges :  See  Pol.  C.  §  2843  to  289."). 

Wharves,  chutes,  and  piers:  See  Pol.  C.  §2900  to  2921. 


TITLE  VII. 

lOld   litlo   VIT   repealed   and   new    title   VII    enacted   March    20, 
1905  ;  stats.  1905,  p.  492.] 

Telegraph  and  Telephone  Corporations. 

(See,    also,    "Franchises,"    statutes   at    large.    Appendix;    see, 
also,  Civ.  C.  §§291-294,  and  Pen.  C.  §§  27.3c,  273&.) 

Sec.  536.     May  use  right  of  way  along  waters,   roads,  and  high- 
■ways. 

537.  Liability  for  damaging  telegraph  or  telephone  property. 

538.  Penalty  for  willfully  or  maliciously  injuring  telegraph 

or  telephone  property. 

539.  Conditions  on  which  damage  to  subaiiucous  cable  may 

be  recovered. 

540.  May  dispose  of  certain  rights. 


§  r»30  CIVIT.   CODE.  155 

May  use  right  of  way  along  waters,  roads,  and   highways. 

§  536.  Telegraph  or  telephone  corporations  may  construct 
lines  of  telegraph  or  telephone  lines  along  and  upon  any  public 
road  or  highway,  along  or  across  any  of  the  waters  or  lands 
within  this  State,  and  may  erect  poles,  posts,  piers,  or  abut- 
ments for  supporting  the  insulators,  wires,  and  other  necessary 
fixtures  of  their  lines,  in  such  manner  and  at  such  points  as 
not  to  incommode  the  public  use  of  the  road  or  highway  or 
interrupt  the  navigation  of  the  waters. 

Enacted  March  20,  1905  :  stats.  lOO;".  p.  492. 
149  Cal.  750. 

]SroTE. — S§  536,  537,  538,  539,  540.  The  change  consists  in  the 
insertion  of  the  words  "or  telephone"  after  the  word  "telegraph," 
thus  including  telephone  companies  within  the  operation  of  the 
above  sections. 

Liability  for  damaging  telegraph   or  telephone  property. 

§  537.  Any  person  who  injures  or  destroys,  through  want 
of  proper  care,  any  necessary  or  useful  fixture  of  any  telegraph 
or  telephone  corporation,  is  liable  to  the  corporation  for  all 
damages  sustained  thereby.  Any  vessel  which,  by  "dragging  its 
anchor,  or  otherwise,  breaks,  injures,  or  destroys  the  subaqueous 
cable  of  a  telegraph  or  telephone  corporation,  subjects  its  owner 
to  the  damages  hereinbefore  specified. 

Enacted  March  20,  1905  ;  stats.  1905,  p.  492. 

Note.. — See  note  to  §  536. 

Penalty  for  willfully  or  maliciously  injuring  telegraph  or  tele- 
phone property. 

§  538.  Any  person  who  willfully  and  maliciously  does  any 
injury  to  any  telegraph  or  telephone  property,  mentioned  in  the 
preceding  section,  is  liable  to  the  corporation  for  one  hundred 
times  the  amount  of  actual  damages  sustained  thereby,  to  be 
recovered  in  any  court  of  competent  jurisdiction. 

Enacted  March  20,  1905 ;  stats.  1905.  p.  492. 

Note. — See  note  to  §  536. 

Conditions  on  which  damage  to  subaqueous  cable  may  be 
recovered. 
§  539.  No  telegraph  or  telephone  corporation  can  recover 
damages  for  the  breaking  or  injuring  of  any  subaqueous  tele- 
graph or  telephone  cable,  unless  such  corporation  has  pre- 
viously erected  on  either  bank  of  the  waters  under  which  the 
cable  is  placed,  a  monument,  indicating  the  place  where  the 
cable  lies,  and  publishes  for  one  month  in  some  newspaper  most 


156  CIVIL  CODE.  §  530 

likely  to  give  notice  to  navigators,  a  notice  giving  a  description 
and  the  purpose  of  the  monuments,  and  the  general  course, 
landings,  and  termini  of  the  cable. 

Enacted  March  20,  1905 ;  stats.  1905,  p.  492. 

Note. — See  note  to  §  536. 

May  dispose  of  certain  rights. 

§  540.  Any  telegraph  or  telephone  corporation  may  at  any 
time,  with  the  consent  of  the  persons  holding  two  thirds  of 
the  issued  stock  of  the  corporation,  sell,  lease,  assigUj  transfer, 
or  convey  any  rights,  privileges,  franchises,  or  property  of  the 
corporation,  except  its  corporate  franchise. 

Enacted  INIarch  20,  1905  ;  stats.  1905,  p.  492. 

Note. — See  note  to  §  536. 


TITLE  VIII. 
Water  and  Canal  Corporations. 

(See,  also,  "Water  Companies,"  statutes  at  large,  Appendix.) 

Sec.  54  8.     Corporations   may   obtain   contract    to   supply   city    or 
town. 

549.  Duties  of  corporation.     Rates  fixed  by  supervisors,  etc. 

550.  Right    to    use    streets,    ways,    alleys,    and   roads.      [Re- 

pealed.] 

551.  Public  highways  not  to  be  obstructed. 

552.  Irrigation.     Basement  and  water  rates. 

Corporations  may  obtain  contract  to  supply  city  or  town. 

§  548.  No  corporation  formed  to  supply  any  city,  city  and 
county,  or  town  with  water  must  do  so  unless  previously  author- 
ized by  an  ordinance  of  the  authorities  thereof,  or  unless  it  is 
done  in  conformity  with  a  contract  entered  into  between  the 
city,  city  and  county,  or  town  and  the  corporation.  Contracts 
so  made  are  valid  and  binding  in  law,  but  do  not  take  from  the 
city,  city  and  county,  or  town  the  right  to  regulate  the  rates 
for  water,  nor  must  any  exclusive  right  be  granted.  No  con- 
tract or  grant  must  be  made  for  a  term  exceeding  fifty  years. 

Enacted  March  21,  1872. 

See,  also,  Pol.  C.  §§  4410  to  441.3. 

Duties  of  corporation — Rates  fixed  by  supervisors,  etc. 

§  549.  All  corporations  formed  to  supply  water  to  cities  or 
towns  must  furnish  pure  fresh  water  to  the  inhabitants  thereof, 
for  family   uses,   so  long  as   the  supply  permits,   at  reasonable 


§  549  CIVIL  CODE.  157 

rates  and  without  distinctiou  of  persous,  upou  proper  demand 
therefor;  and  must  furnish  water  to  the  extent  of  their  means, 
in  case  of  fire  or  other  great  necessity,  free  of  charge.  The 
board  of  supervisors,  or  the  proper,  city  or  town  authorities, 
may  prescribe  proper  rules  relating  to  the  delivery  of  water, 
not  inconsistent  with  the  laws  of  the  state. 

Amended  March  21,  1905  ;  stats.  1905,  p.  580. 
52  Cal.  134  ;  152  Cal.  588. 

Note. — §  549.  The  change  consists  in  the  omission  of  the  two 
sentences  following  the  word  "charge,"  which  were  a  part  of  the 
section,  said  sentences  having  been  superseded  by  the  provisions 
of  the  constitution  of  1879,  providing  for  the  mode  in  which  water 
rates  shall  be  fixed. 

See,  also.  Constitution  of  California,  art.  XI,  §  19. 

Right  to  use  streets,  ways,  alleys,  and  roads.     [Repealed.] 

§  550.  Right  to  use  streets,  ways,  alleys,  and  roads.  [Repealed 
March  21,  1905;  stats.  1905,  p.  580.] 

Note. — §  550.  This  section  is  an  expression  of  the  constitu- 
tional provisions  found  in  the  constitution  of  1879,  respecting  the 
right  of  corporations  to  use  streets  for  laying  water  pipes,  and  is, 
therefore,   repealed. 

Public  highways  not  to  be  obstructed. 

§  551.  No  canal,  flume,  or  other  appliance  for  the  conduct- 
ing of  water  must  be  so  laid,  constructed,  or  maintained  as  to 
obstruct  any  public  highway  ;  and  every  person  or  corporation 
owning,  maintaining,  operating,  or  using  any  such  canal,  flume, 
or  appliance,  crossing  or  running  along  any  public  highway, 
must  construct,  maintain,  and  keep  in  repair  such  bridges 
across  the  same  as  may  be  necessary  to  the  safe  and  convenient 
use  of  such  highway  by  the  public ;  and  on  failure  so  to  do,  the 
board  of  supervisors  of  the  county,  after  seven  days'  notice  in 
writing  to  said  person  or  corporation,  may  construct  or  repair 
such  bridge  or  bridges,  and  recover  of  such  person  or  corpora- 
tion the  amount  of  the  expenditure  made  in  so  doing. 

Amended  March  21,  1905 ;  stats.  1905,  p.  580. 
68  Cal.  359 ;  98  Cal.  183. 

Note. — §  551.  The  design  of  the  amendment  is  to  better  express 
the  purpose  of  the  section  and  to  remove  the  objections  that  it 
may  be  unconstitutional  in  investing  the  supervisors  with  an 
arbitrary  power  to  require  or  not  require  bridges,  and  to  .supply 
the  defect  in  not  providing  any  means  of  coercing  the  perform- 
ance of  the  duty  created. 

See,  also,  Pol.  C.  §  2G94. 


158  CIVIL  CODE.  §  552 

Irrigation — Easement  and  water  rates. 

§  552.  Wheuever  auy  corporation,  organized  under  tlie  laws 
of  this  state,  furnishes  water  to  irrigate  lands  which  said  cor- 
poration has  sold,  the  right  to  the  flow  and  use  of  said  water 
is  and  shall  remain  a  perpetual  easement  to  the  land  so  sold, 
at  such  rates  and  terms  as  may  be  established  by  said  corpora- 
tion in  pursuance  of  law.  And  whenever  auy  person  who  is 
cultivating  land  on  the  line  and  within  the  flow  of  any  ditch 
owned  by  such  corporation,  has  been  furnished  water  by  it 
with  which  to  irrigate  his  land,  such  person  shall  be  entitled 
to  the  continued  use  of  said  water,  upon  the  same  terms  as 
those  who  have  purchased  their  land  of  the  corporation. 
Amended  April  3,  187G ;  amendts.  1875-G,  p.  77. 

5G  Cal.  440;  90  Cal.  28G ;  112  Cal.  434;  129  Cal.  448; 

130  Cal.  313;   152  Cal.  588,  597;  2  Cal.  App.  413;  VI 

Cal  App.  Doc.  G47,  79G. 


TITLE  IX. 

Homestead  Corporations. 

Sec.  557.     Time  of  coi"porate  existence. 

5.^)8.  By-laws  must  specify  time  for  and  amount  of  payment 
of  installments,  and  penalty  for  failure  to  pay.  By- 
laws to  be  furnished  to  any  member  on  demand. 

550.  Advertisement  and  sale  of  delinquent  and  forfeited 
shares. 

560.  May  borrow  and  loan  funds — how,  and  for  what  time. 

561.  Minor  children,   wards,   and  married  women  may  own 

stock. 
502.     Forfeiture  for  speculating  in  or  owning  lands  exceed- 
ing two  hundred  thousand  dollars. 

563.  When  corporation  is  terminated,  and  how. 

564.  Payment  of  premiums. 

565.  Annual  report  to  be  published. 

566.  Publication  in  certain  cases. 

Time  of  corporate  existence. 

S  557.  Corporations  organized  for  th(>  purpose  of  ac(iuiring 
lands  in  large  tracts,  paying  off  incumbrances  thereon,  improv- 
ing and  subdividing  them  into  homestead  lots  or  parcels,  and 
distributing  them  among  the  shareholders,  and  for  the  accumu- 


§  557  CIVIL  CODE.  150 

latiou  of  a  fuud  for  such  pui-poscs.  are  known  as  hooiostead  eor- 
porafions,  and  must  not  have  a  corporate  existence  for  a  lonser 
period  than  ten  years. 
Enacted  March  21,  1S72. 

By-laws  must  specify  time  for  and  amount  of  payment  by  install- 
ments,   and    penalty   for   failure  to   pay— By-laws   to    be   fur- 
nished to  any  member  on  demand. 
§558.     Such  corporations  must  specify   in   their   liy-laws   the 
times  when   the  installments  of   the  capital  stock  are  payable, 
the    amount    thereof,    and    the    fines,    penalties,    or    forfeitures 
incurred  in  case  of  default.     A  printed  copy  of  the  articles  of 
incorporation  and  by-laws  must  be  furnished  to  any  shareholder 
on  demand. 

Enacted  March  21,  1S72. 

Advertisement   and   sale  of  delinquent  and   forfeited   shares. 

§  559.  Whenever  any  shares  of  stock  are  declared  forfeited, 
by  resolution  of  the  board  of  directors,  the  directors  may  adver- 
tise the  same  for  sale,  giving  the  name  of  the  subscriber  and 
the  number  of  shares,  by  notice  of  not  less  than  three  weeks, 
published  at  least  once  a  week  in  a  newspaper  of  general  cir- 
culation in  the  city,  town,  or  county  where  the  principal  place 
of  business  of  such  corporation  is  located.  Such  sale  must  Ije 
made  at  auction,  under  the  direction  of  the  secretary  of  the 
company.  The  corporation  may  be  a  bidder,  and  the  shares 
must  be  disposed  of  to  the  highest  bidder  for  cash.  No  defect, 
informality,  or  irregularity  in  the  proceedings  respecting  the 
sale  invalidates  it,  if  notice  is  given  as  herein  provided.  After 
the  sale  is  made,  the  secretary  must,  on  receipt  of  the  pur- 
chase money,  transfer  to  the  purchaser  the  shares  sold,  and 
after  deducting  from  the  proceeds  of  such  sale  all  installments 
then  due,  and  all  expenses  and  charges  of  sale,  must  hold  the 
residue  subject  to  the  order  of  the  delinquent  subscriber. 

Enacted  March  21.  1872. 

May  borrow  and  loan  funds — how,  and  for  what  time. 

§  560.  Homestead  corporations  may  borrow  money  for  the 
purposes  of  the  corporation,  not  exceeding  at  any  one  time  one 
fourth  of  the  aggregate  amount  of  the  shares  or  parts  of 
shares  actually  paid  in,  and  the  income  thereof ;  no  greater  rate 
of  interest  must  be  paid  therefor  than  twelve  percent  per  annum. 


1.60  CIVIL  CODK.  §  560 

For  the  purpose  of  completing  the  pnrchasi'  ol'  hnids  intended 
to  be  divided  and  distributed,  they  may  l)orrow  on  tlie  security 
of  their  shares  on  the  land  thus  purchased,  or  that  owned 
by  the  corporation  at  the  time  of  procuring  the  loan,  any 
sum  of  money  which,  together  with  the  interest  contracted  to 
become  due  thereon,  will  not  exceed  ninety  per  cent  of  the 
unpaid  amount  subscribed  by  the  shareholders ;  but  no  loan 
must  be  made  to  the  corporation  for  a  term  extending  beyond 
that  of  its  existence. 

Enacted  March  21.  1S72. 

Minor  children,  wards,  and  married  women  may  own  stock. 

§561.  Such  shares  of  stock  in  homestead  corporations  as 
may  be  acquired  by  children,  the  cost  of  which,  and  the  deposits 
and  assessments  on  which,  are  paid  from  the  personal  earn- 
ings of  the  children,  or  with  gifts  from  persons  other  than 
their  male  parents,  may  be  taken  and  held  for  them  by  their 
parents  or  guardians.  Married  women  may  hold  such  shares 
as  they  acquire  with  their  personal  earnings,  or  those  of  their 
children,  voluntarily  bestowed  therefor,  or  from  property 
bequeathed  or  given  to  them  l\v  persons  other  than  their  hus- 
bands. 

Enacted  March  21,  1872. 

Amount  of  shares  exempt  from  execution :  Code  Civ.  Proc. 
§  GOO,  .subd.  11. 

Forfeiture    for    speculating    in    or    owning    lands    exceeding    two 
hundred  thousand  dollars. 

§  562.  Homestead  corporations  must  not  purchase  and  sell, 
or  otherwise  acquire  and  dispose  of,  real  property,  or  any  inter- 
est therein,  or  any  personal  property,  for  the  sole  purpose  of 
speculation  or  profit.  Nor  must  any  such  corporation  at  any 
one  time  own  or  hold,  in  trust  or  otherwise,  for  its  purposes, 
real  property,  or  any  interest  therein,  which  in  the  aggregate 
exceeds  in  cash  value  the  sum  of  two  hundred  thousand  dollars. 
For  any  violation  of  the  provisions  of  this  section  corporations 
forfeit  their  corporate  rights  and  powers.  On  the  application 
of  any  citizen  to  a  court  of  competent  jurisdiction,  such  for- 
feiture may  be  adjudged,  and  the  judgment  carries  with  it  costs 
of  the  proceedings. 

Enacted   March   21,   1872. 


§  5G3  civil,  CODE.  161 

When  corporation   is  terminated,   and   liow. 

§  563.  Except  for  the  purpose  of  wiiiding  up  and  settling 
its  affairs,  every  homestead  corporation  must  terminate  at  the 
expiration  of  the  time  fixed  for  its  existence  in  the  articles  of 
incorporation,  or  when  dissolved  as  provided  in  this  part.  No 
dividend  of  funds  must  be  made  on  termination  of  its  corporate 
existence  until  its  debts  and  liabilities  are  paid  ;  and  upon,  the 
final  settlement  of  the  affairs  of  the  corporation,  or  upon  the 
termination  of  its  corporate  existence,  the  directors,  in  such 
manner  as  thej-  may  determine,  must  divide  its  property  among 
its  shareholders  in  proportion  to  their  respective  interests,  or. 
upon  the  application  of  a  majority  in  interest  of  the  stock- 
holders, must  sell  and  dispose  of  any  or  all  of  the  real  estate 
of  the  corporation  upon  such  terms  as  may  be  most  conducive 
to  the  interests  of  all  the  stockholders,  and  must  convey  the 
same  to  the  purchaser,  and  distribute  the  proceeds  among  the 
shareholders,  or  may  at  any  time,  when  best  for  the  interests 
of  all  the  shareholders,  cause  the  lands  of  the  corporation  to  be 
subdivided  into  lots  and  distributed,  by  sale  for  premiums,  at 
auction  or  otherwise,  among  the  shareholders. 

Enacted  March  21,  1872. 

Payment  of  premiums. 

§  564.  Such  premiums  on  lots  may  be  made  payable  at  the 
time  they  are  bid  off,  and,  if  not  so  paid  on  any  lot  of  land,  the 
directors  may  immediately  offer  the  same  for  sale  again.  If 
niade  payable  at  a  future  day,  and  any  shareholder  fails  to  pay 
his  bid  on  the  day  the  same  is  made  due  and  payable,  the 
directors  may  advertise  and  sell  the  shares  of  stock  represent- 
ing the  lots  of  land  on  which  the  premiums  remain  unpaid,  in 
the  manner  provided  in  the  by-laws  for  the  sale  of  shares  on 
account  of  delinquent  installments  and  premiums. 

Enacted  March  21,  1872. 
Annual  report  to  be  published. 

§  565.  The  actual  financial  condition  of  all  homestead  cor- 
porations must,  by  the  directors  thereof,  be  published  annually 
in  the  [a]  newspaper  published  at  the  principal  place  of  busi- 
ness of  the  corporation,  for  four  weeks,  if  published  in  a 
weekly,  and  two  weeks,  if  published  in  a  daily.  The  statement 
iimst  Ik-  made  up  to  the  end  of  each  year,  and  must  be  verified 
by  (lir  oath  of  the  president  and  secretary,  showing  the  items 
of  i)roi)ei'ly   and  lial)iliUes. 

Enacted  March  21,  1872. 


162  CIVIL  CODE.  §  56G 

Publication   in  certain  cases. 

§  566.  lu  auy  case  in  which  a  publicatiou  is  required,  and 
uo  uewsyapor  is  published  at  the  principal  place  of  business, 
the  publication  maj'  bo  made  in  a  paper  pul)lished  in  an  adjoin- 
ing county. 

Enacted  March  21.  1S72. 


TITLE  X. 

Savings  and  Loan  and  Banking  Corporations. 

(See.    also,    "Banks    and    Banking,"    statutes    at    large.    Ap- 
pendix. ) 

Sec.  571.     May  loan  monej' — on  what  terms,  how,  and  to  whom, 
and  how  long. 

572.  Capital  stock,  and  rights  and  privileges  thereof. 

573.  No  dividends,  except  from  surplus  profits.     To  contruet 

no  liability,  except  for  deposits. 

574.  Property   which   may   be   owned   by   corporations,    and 

how  disposed  of.     Restrictions  in  purchases  as  pro- 
vided above. 

575.  Married  women   and   minors   may   own   stock    in    their 

own  right. 
57G.     May  issue  transferable  certificates  of  deposit.      Special 
certificates. 

577.  To  provide  reserve  fund  for  the  payment  of  losses. 

578.  Prohibition   on   director  and  officer,   and  what   vacates 

office. 
57!).     Dclinition  of  phrase  "create  debts." 
5  80.     Capital  stock  required.      [Repealed.] 

581.  Amount  of  money  to  be  loaned  on  real  estate,   limited. 

582.  Persons  not  incorporated  must  sliow  tiiie  names,  etc. 

583.  Dividends,  how  and  when  declared. 
5S3a.  Capital  stock  required  to  be  advertised. 
538&.  Unclaimed  deposits.     Statement  required. 

May  loan  money — on  what  terms,  how,  and  to  whom,  and  how 
long. 
S571.  Corporations  organized  for  the  purpose  of  accumu- 
lating and  loaning  Ihe  funds  of  their  members,  stocl<holders, 
and  depositors,  ma.v  loan  and  in\est  the  funds  thereof,  i-eceive 
deposits  of  mone.\-,  loan.  in\esl,  and  collect  the  same,  with  inter- 
est,  and   hiay    repay   depositors   with   or   without   interest.      No 


§  571  CIVIL  CODE.  163 

such  cor[ioration  imis(:  loan  nionoy,  excopl  on  iidtxinale  sfcnrily 
(in  real  or  iicrsonal  proporty,  and  sucli  loan  innsi  not  \\o  for  a 
longer  period  than  ton  years. 

Amended  March  15,  1901;  stats.  1901 .  p.  29.".. 

G4  Cal.  123 ;  97  Cal.  222 ;  120  Cal.  415  ;  13(>  Cal.  442. 

Banking  corporations  not  to  take  tlie  name  of  friendly  asso- 
ciations :  Code  Civ.  Proc.  §  1270. 

Created  only  under  general  laws:  Constitution  of  California, 
art.  XII,  §  5. 

Capital  stock,  and  rights  and  privileges  thereof. 

§572.  When  savings  and  loan  eor[)oraMons  have  a  capita! 
stock  specified  in  their  articles  of  incorporation,  certificates  of 
the  ownership  of  shares  may  be  issued ;  and  the  rights  and 
privileges  to  be  accorded  to,  and  the  obligations  to  l)e  imposed 
upon,  such  capital  stock,  as  distinct  from  those  of  depositors, 
must  be  fixed  and  defined,  either  in  the  articles  of  incorporation 
or  in  the  by-laws. 

Enacted  March  21.  1S72. 

04  Cal.  123  ;  109  Cal.  401:  117  Cal.  100. 

No   dividends,    except   from   surplus    profits — To   contract    no    lia- 
bility, except  for  deposits. 

§  573.  The  directors  of  savings  and  loan  corporations  may. 
at  such  times  and  in  such  manner  as  the  by-laws  prescrilje. 
declare  and  pay  dividends  of  so  much  of  the  profits  of  the  cor- 
poration, and  of  the  interest  arising  from  the  capital  stock  and 
deposits,  as  may  be  appropriated  for  that  purpose  under  the 
liy-laws  or  under  their  agreements  with  depositors.  The  direct- 
ors must  not  contract  any  debt  or  liability  against  the  cor- 
poration for  any  purpose  whatever,  except  for  deposits.  The 
capital  stock  and  the  assets  of  the  corporation  are  a  security 
to  depositors  and  stockholders,  depositors  having  the  priority  of 
security  over  the  stockholders,  but  the  by-laws  may  provide 
that  the  same  security  shall  extend  to  deposits  made  I\v  stock- 
liolders. 

Enacted  March  21,  1S72. 

04  Cal.  123:  109  Cal.  401  ;  117  Cal.  100;  119  Cal.  343. 

Property    which    may    be    owned    by    corporations,    and    how    dis- 
posed of — Restrictions  in   purchases  as  provided  above. 
§  574.     Savings    and    loan    corporations    ma.v    purchase,    hold 
and  convey  real  and  personal  properly  as   follows: 


ICA  CIVIL  CODE.  §  574 

1.  The  liil  niid  huililin^'  in  wliicli  tlu'  Imsiiit'ss  of  llic  cdi-pora- 
tion  is  carried  ou,  tho  cost  of  which  must  no)  exceed  one  hun- 
dred Uiousand  dollars ;  except,  on  a  vote  of  two  thirds  of  the 
stockholders  the  corporation  may  increase  the  sum  to  an  amounl 
not  exceeding  two  hundred  and  fifty  thousand  dollars; 

2.  Such  as  may  have  been  mortgaged,  pledged  or  conveyed  to 
it  in  trust,  for  its  benefit  in  good  faith,  for  money  loaned  in 
pursuance  of  the  regular  business  of  the  corporation  ; 

B.  Such  as  may  have  been  purchased  at  sales  under  pledges, 
mortgages,  or  deeds  of  trust  made  for  its  benefit,  for  money  so 
loaned,  and  such  as  may  be  conveyed  to  it  by  borrowers  in  sat- 
isfaction and  discharge  of  loans  made  thereon  ; 

4.  No  such  corporation  must  purchase,  hold  or  convey  real 
estate  in  any  other  case  or  for  any  other  purpose  ;  and  all  real 
estate  described  in  subdivision  three  of  this  section  must  be 
sold  by  the  corporation  within  ten  years  after  the  title  thereto 
is  vested  in  it  by  purchase  or  otherwise ; 

5.  No  such  corporation  must  purchase,  own,  or  sell  personal 
property,  except  such  as  may  be  requisite  for  its  immediate 
accommodation  for  the  convenient  transaction  of  its  business, 
mortgages  on  real  estate,  bonds,  securities  or  evidences  of 
indebtedness,  public  or  private,  gold  and  silver  bullion  and 
United  States  mint  certificates  of  ascertained  value  and  evi- 
dences of  debt  issued  by  the  United  States ; 

G.  No  such  corijoration  must  purchase,  hold  or  convey  bonds, 
securities  or  evidences  of  indebtedness,  public  or  private,  except 
bonds  of  the  United  States,  of  the  State  of  California,  and  of 
the  counties,  cities,  or  cities  and  counties,  or  towns,  or  school 
districts  of  the  State  of  California,  or  bonds  of  railroad  or  street 
railroad  corporations  owning  property  and  having  their  prin- 
cipal place  of  business  in  the  State  of  California,  unless  such 
corporation  has  a  capital  stock  or  reserve  fund  paid  in  of  not 
less  than  one  hundred  thousand  dollars. 

Amended  March  23,  1901 ;  stats.  1901,  p.  G59. 

64  Cal.  123 ;  109  Cal.  401 ;  117  Cal.  160 ;  126  Cal.  416 ; 
133  Cal.  613  ;  136  Cal.  442  ;  149  Cal.  124  ;  3  Cal.  App.  710. 

Married  women  and  minors  may  own  stock  in  their  own  right. 

§  575.  Married  women  and  minors  may,  in  their  own  right, 
make  and  draw  deposits  and  draw  dividends,  and  give  valid 
receipts  therefor. 

Enacted  March  21,  1872. 

64  Cal.  123 ;  117  Cal.  160 ;  134  Cal.  40.'j. 


§  57G  CIVIL  CODE.  165 

May    issue    transferable    certificates    of    deposit — Special     certifi- 
cates. 

§  576.  Savings  autl  loan  corporations  may  issue  general  cer- 
Uticates  of  deposit,  wliieh  are  transferable,  as  in  other  cases, 
by  indorsement  and  delivery  ;  may  issue,  when  requested  by  the 
depositor,  special  certificates,  acknowledging  the  deposit  by  the 
person  therein  named  of  a  specified  sum  of  money,  and  expressly 
providing  on  the  face  of  such  certificate  that  the  sum  so 
deposited  and  therein  named  may  be  transferred  only  on  the 
books  of  the  corporation ;  payment  thereafter  made  by  the  cor- 
poration to  the  depositor  named  in  such  certificate,  or  to  his 
assignee  named  upon  the  books  of  the  corporation,  or,  in  cusc 
of  death,  to  the  legal  representative  of  such  person,  of  the  sum 
for  which  such  special  certificate  was  issued,  discharges  the 
corporation  from  all  further  liability  on  account  of  the  money 
so  paid. 

Enacted  March  21,  1872. 

G4  Cal.  123;  109  Cal.  403;  117  Cal.  KJO ;  119  Cal.  311; 
13G  Cal.  512. 

Receiving  deposits  when  insolvent :  Pen.  C.  §  562. 

To  provide  reserve  fund  for  the  payment  of  losses. 

§  577.  Savings  and  loan  corporations  may  prescribe  by  their 
by-laws  the  time  and  conditions  on  which  repayment  is  to  be 
made  to  depositors  ;  but  whenever  there  is  any  call  by  depos- 
itors for  repayment  of  a  greater  amount  than  the  corporation 
may  have  disposable  for  that  purpose,  the  directors  or  officers 
thereof  must  not  make  any  new  loans  or  investments  of  the 
funds  of  the  depositors,  or  of  the  earnings  thereof,  until  such 
excess  of  call  has  ceased.  The  directors  of  any  such  corpora- 
tion having  no  capital  stock  must  retain,  on  each  dividend  day, 
at  least  five  per  cent  of  the  net  profits  of  the  corporation,  to 
constitute  a  reserve  fund,  which  must  be  invested  in  the  same 
manner  as  other  funds  of  the  corporation,  and  must  be  used 
toward  paying  any  losses  which  the  corporation  may  sustain  in 
pursuing  its  lawful  business.  The  corporation  may  provide 
by  its  by-laws  for  the  disposal  of  any  excess  in  the  reserve  fund 
over  one  hundred  thousand  dollars,  and  the  final  disposal,  upon 
the  dissolution  of  the  corporation,  of  the  reserve  fund,  or  of 
the  remainder  thereof,  after  payment  of  losses. 

Enacted  March  21.  1872. 

57  Cal.  602  ;  64  Cal.  123  ;  109  Cal.  401 ;  117  Cal.  KJO. 


1(56  CIVIL  CODE.  §  578 

Prohibition   on   director  and  officer,   and   wliat   vacates  office. 

§  578.  No  director  or  officer  of  iiny  saviuj^s  and  loan  cor- 
poratiou  luiisf,  directly  or  indirectly,  for  himself  or  as  Ihe  part- 
ner or  agent  of  others,  horrow  any  of  the  deposits  or  other 
funds  of  siuh  corporation,  nor  must  he  become  an  indorser  or 
surety  for  loans  to  others,  nor  in  any  manner  be  an  obligor  for 
moneys  borrowed  of  or  loaned  by  such  corporation.  The  office 
of  any  director  or  officer  who  acts  in  contravention  of  the  pro- 
visions of  this  section  immediately  thereupon  becomes  vacant. 

Enacted  March  21,  1S72. 

04  Cal.  ]2n;  104  Cal.  470;  117  Cal.   IC.O;  121  Cnl.  2'.»l  ; 
130  Cal.  257  ;  130  Cal.  442. 

Fraudulent  appropriation  of  proi)erly  :   Pen.  C.  S  5(t(;, 

Penalty  for  overdrawing  account:  Pen.  O.  §501. 
Definition  of  phrase  "create  debts." 

§  579.  Receiving  deposits,  issuing  certificates  of  deposit, 
checks,  and  bills  of  exchange,  and  the  like,  in  the  transaction  of 
the  business  of  savings  and  loan  corporations,  must  not  be  con- 
strued to  be  the  creation  of  debts  within  the  meaning  of  the 
phrase  "create  debts."  in  section  three  hundred  and  nine. 

Enacted  March  21,  1872. 

57  Cal.  002  ;  04  Cal.  123  ;  117  Cal.  100. 

Capital  stock  required.     [Repealed.] 

§580.  Capital  stock  required.  [Repealed  JSParch  18.  1007; 
stats.   1007,  11.  570).] 

Amount  of  money  to  be  loaned  on  real  estate,  limited. 

§  581.  No  savings  bank  shall  lend  to  exceed  sixty  per  cent  of 
the  market  value  of  any  piece  of  real  estate  to  be  taken  as 
security,  except  for  the  purpose  of  facilitating  the  sale  of  prop- 
erty owned  by  the  corporation.  And  it  shall  be  unlawful  for 
any  savings  and  loan  society,  or  savings  bank,  to  purchase, 
invest,  or  loan  its  capital,  or  the  money  of  its  depositors,  or 
any  part  of  either,  in  mining  shares  or  stocks.  Any  president 
or  managing  officer  who  knowingly  consents  to  a  violation  of 
the  above  provision  shall  be  deemed  guilty  of  a  felony. 

Enacted  March  21,  1903  :  stats.  1003,  p.  352. 

Persons   not   incorporated   must  show  true  names,  etc. 

§  582.  Every  person  or  number  of  persons  not  being  incor- 
porated, engaged  in  the  business  of  banking,  or  publicly  receiv- 
ing money  on  deposit,  must  conduct  such  business  under  a  name 


§  582  CIVIL  CODE. 


167 


which  shows  the  true  names  of  all  persons  engaged  therein, 
unless  such  person  or  persons  have  complied  with  the  provisions 
of  article  VII  of  chapter  II  of  title  X  of  part  IV  of  division 
third  of  said  Civil  Code.  Every  person  violating  any  of  the 
provisions  of  this  section  is  guilty  of  a  misdemeanor,  and  is 
punishable  by  imprisonment  in  the  county  jail  for  not  less  than 
ninety  days  nor  more  than  six  months,  or  by  fine  of  not  less 
than  one  hundred  dollars  nor  more  than  five  hundred  dollars,  or 
by  both  such  fine  and  imprisonment. 

Enacted  March  21,  1903 ;  stats.  1903,  p.  352. 

Banking  corporation  not  to  take  the  name  of  friendly  asso- 
ciations:  See  Code  Civ.  Proc.§  1270. 

Dividends,   how  and  when  declared. 

§583.  The  directors  of  any  savings  bank,  liank,  or  banking 
corporation  having  a  capital  stock,  may  semi-annually  declare 
a  dividend  of  so  much  of  the  net  profits  of  the  stockholders  as 
they  shall  judge  expedient;  but  every  such  corporation  shall, 
before  the  declaration  of  such  dividend,  carry  at  least  one  tenth 
(1-10)  part  of  the  net  profits  of  the  stockholders  for  the  pre- 
ceding half  year  to  its  surplus  or  reserve  fund  until  the  same 
shall  amount  to  twenty-five  per  centum  of  its  paid-up  capital 
stock.  But  the  whole  or  any  part  of  such  surplus  or  reserve 
fund,  if  held  as  the  exclusive  property  of  stockholders,  may 
at  any  time  be  converted  into  paid-up  capital  stock,  in  which 
event  such  surplus  or  reserve  fund  shall  be  restored  in  manner 
as  above  provided  until  it  amounts  to  twt'uty-five  per  centum 
of  the  aggregate  paid-up  capital  stock.  A  larger  surplus  or 
reserve  fund  may  be  created  and  nothing  herein  contained  shall 
Ite  construed  as  prohibitory  thereof. 

Enacted  March  21,  1903;  stats.  1903,  p.  3.").3. 

Capital  stock  required  to  be  advertised. 

§  583«.  No  banker,  nor  ofiicer  of  any  bank  or  corpuralidu 
doing  a  banking  business,  shall  advertise  in  any  manner,  or 
publish  any  statement  of  the  capital  stock  authorized  or  sub- 
scribed, unless  he  advertise  and  publish  in  connection  therewith, 
the  amount  of  capital  actually  paid  u\k  Any  officer,  or  the 
officers  of  any  bank  or  corporation  doing  a  baid<ing  Imsines.^i, 
nd\'erlising  in  any  ninnncr.  or  iiublisliini;,  a  slatemenl,  of  llie- 
(■a[iital    sloek   ol'   sui-li   bank    or   ))anking   cori)oralion,    aulliori/,(Ml 


168  CIVIL  CODE.  §  583a 

or  subscribed,  witboiit  the  statement  iu  counection  therewith  of 
the  stock  actually  paid  up,  shall  be  guilty  of  a  misdemeanor. 

Enacted  March  21.  1003;  stats.  1003,  p.  353. 

See,  also,  ''Fraudulent  Repoi'ts,"  statutes  at  large,  Appendix. 

Unclaimed  deposits — Statement  required. 

§  583li.  The  president  of  every  savings  bank,  savings  and 
loan  society,  and  every  other  bank,  depository,  society,  or  insti- 
tution in  which  deposits  of  money  are  made,  whether  any 
interest  or  dividend  is  paid,  or  agreed  to  be  paid,  thereon  or 
not,  must,  within  fifteen  days  after  the  fii'st  day  of  January 
of  every  odd-numbered  year,  return  to  the  board  of  bank  com- 
missioners a  sworn  statement  showing  the  amount  placed  to 
his  credit,  the  last  known  place  of  residence  or  post  office  address, 
and  the  fact  of  death,  if  known  to  such  president,  of  every 
depositor  who  has  not  made  a  deposit  therein  or  withdrawn 
therefrom  any  part  of  his  deposit,  or  any  part  of  the  interest 
or  dividends  thereon,  for  a  period  of  more  than  ten  years  next 
preceding.  Such  president  must  give  notice  of  these  deposits 
in  one  or  more  newspapers  published  in  or  nearest  the  town, 
city,  or  city  and  county  where  such  bank,  society,  or  other  insti- 
tution is  situated  or  has  its  principal  place  of  business,  at  least 
once  a  week  for  four  successive  weeks,  the  cost  of  such  publica- 
tion to  be  paid  pro  rata  out  of  such  unclaimed  deposits.  This 
section  does  not  apply  to  any  deposit  made  by  or  in  the  name  of 
a  person  known  to  the  pi-esident  to  be  living,  or  which,  with 
the  accumulation  thereon,  is  less  than  fifty  dollars.  The  board 
of  bank  commissioners  must  incorporate  in  their  subsequent 
report  each  return  made  to  them  as  provided  in  this  section. 
Any  president  of  any  of  the  institutions  mentioned  in  this 
section  who  neglects  or  refuses  to  make  the  sworn  statement 
required  thereby,  is  guilty  of  a  misdemeanor. 

Enacted  March  21,  1005 ;  stats.  1005,  p.  581. 

Note. — §  583b.  This  section  is  a  codification  of  the  statutes 
of  1893,  page  183,  and  1897,  page  27,  the  only  change  made  being 
in  the  provisions  concerning  the  person  who  is  to  make  the 
report.  The  original  statute  provided  that  the  report  should  be 
made  by  the  president  or  secretary.  It  has  been  thought  best 
to  impose  the  duty  upon  a  single  officer,  so  that  it  can  not  be 
evaded  by  one  officer,  l)y  his  saying  that  it  was  the  duty  of  the 
other,  or  that  he  had  supposed  tlie  other  had,  or  would,  perform  it. 


§  586  CIVIL  CODE.  169 


TITLE  XI. 

[Old  title  XI  repealed,  and  new  title  XI  substituted  March  21, 
1905  ;  stats.  1905,  p.  584.] 

Mining  Corporations. 

(See,  also,  Civ.  C.  §§1426  to  1426s;  "Mines  and  Mining," 
and  "Hours  of  Labor,"  statutes  at  large,  Appendix.) 

Sec.  586.     Transfer  agencies. 

587.  Stock  issued  at  transfer  agencies. 
587a.  Consolidation  of  mining  corporations. 

588.  Books    and    balance    sheets    to    be    kept    by    secretary. 

Stockholders'  right  to  inspect. 
5  89.     Right  of  stockholders  to  visit  mine  with  expert. 
590.     Liability  of  president  and  directors. 

Transfer  agencies. 

§  586.  Any  corporation  organized  in  this  state  for  the  pur- 
pose of  mining  or  carrying  on  mining  operations  in  or  without 
this  state,  may  establish  and  maintain  agencies  in  other  states 
of  the  United  States,  for  the  transfer  and  issuing  of  their 
stock ;  and  a  transfer  or  issue  of  the  same  at  any  such  transfer 
agency,  in  accordance  with  the  provisions  of  its  by-laws,  is 
valid  and  binding  as  fully  and  effectually  for  all  purposes  as  if 
made  upon  the  books  of  such  corporation  at  its  principal  ofBce 
within  this  state.  The  agencies  must  be  governed  by  the  by-laws 
and  the  directors  of  the  corporation. 

Enacted  March  21,  390.5;  stats.  1905,  p.  584. 
142  Cal.  392 ;  VII  Cal.  App.  Dec.  730. 

Note. — §§  586,  587,  587a.  Revises  the  whole  of  title  XI  of 
part  IV  of  division  first  of  the  Civil  Code,  respecting  mining  cor- 
porations. Sections  586  and  587  are  not  changed,  but  simply 
re-enacted.  Section  587a  contains  substantially  the  matter  that 
was  in  section  361,  the  word  "corporations"  being  substituted  for 
"companies,"  and  the  words  "and  to  cause  notice  of  the  time  and 
place  fixed  for  such  meeting  to  be  mailed  to  each  stockholder  of 
each  of  such  corporations  at  his  last  known  place  of  residence  or 
business  at  least  ten  days  before  the  time  fixed  for  such  meet- 
ing" being  inserted.  The  matter  added  is  designed  to  provide  the 
mode  in  which  notices  may  be  served  on  stockholders. 

8— CL. 


170  CIVIL  CODE.  §  587 

Stock  issued  at  transfer  agencies. 

§  587.  All  stock  of  any  such  corporation,  issued  at  a  tranelJer 
agency,  must  be  signed  by  the  president  and  secretary  of  the 
corporation,  and  countersigned  at  the  time  of  its  issue  by  the 
agent  having  charge  of  the  transfer  agency.  No  stock  must  be 
issued  at  a  transfer  agency  unless  the  certificate  of  stock,  in 
lieu  of  which  the  same  is  issued,  is  at  the  time  surrendered  for 
cancellation. 

Enacted  March  21,  1905  ;  stats.  1905,  p.  585. 

Note. — See  note  to  §  586. 

Consolidation  of  mining  corporations. 

§  587ff.  It  is  lawful  for  two  or  more  corporations  formed, 
or 'that  may  hereafter  be  formed,  under  the  laws  of  this  state, 
for  mining  purposes,  which  own  or  possess  mining  claims  or 
lands  adjoining  each  other,  or  lying  in  the  same  vicinity,  to 
consolidate  their  capital  stock,  debts,  property,  assets,  and 
franchises,  in  such  manner  and  upon  such  terms  as  may  be 
agreed  upon  by  the  respective  boards  of  directors  or  trustees 
of  such  corporations  so  desiring  to  consolidate  their  interests  ; 
but  no  such  consolidation  must  take  place  without  the  written 
consent  of  the  stockholders  representing  two  thirds  of  the  capital 
stock  of  each  corporation,  and  no  such  consolidation  can,  in 
any  way,  relieve  such  corporations,  or  the  stockholders  thereof, 
from  any  and  all  just  liabilities ;  and  in  case  of  such  consolida- 
tion, due  notice  of  the  same  must  be  given,  by  advertising,  for 
one  month,  in  at  least  one  newspaper  in  the  county  where  the 
said  mining  property  is  situated,  if  there  is  one  published  therein, 
and  also  in  one  newspaper  published  in  the  county  where  the 
principal  place  of  business  of  any  of  said  corporation  is.  And 
when  the  consolidation  is  completed,  a  certificate  thereof,  con- 
taining the  manner  and  terms  of  such  cocsolidation,  must  be 
filed  in  the  office  of  the  county  clerk  of  the  county  in  which  the 
original  certificate  of  incorporation  of  each  of  said  corporations 
is  filed,  and  a  copy  thereof  must  be  filed  in  the  office  of  the  secre- 
tary of  state  ;  such  certificate  must  be  signed  by  a  majority  of 
each  board  of  trustees  or  directors  of  the  original  corporations, 
and  it  is  their  duty  to  call,  within  thirty  days  after  the  filing 
of  such  certificate,  a  meeting  of  the  stockholders  of  all  of  said 
corporations  so  consolidated,  to  elect  a  board  of  trustees  or 
directors   for  the  consolidated   corporation,   for   the  year   theUce 


§  5S7«  CIVIL  CODE.  171 

next  ensuing- ;  and  to  cause  notice  of  tlie  time  and  place  fixed 
for  such  meeting  to  be  mailed  to  each  stockholder  of  each  of  such 
corporations  at  his  last  known  place  of  residence  or  business  at 
least  ten  days  before  the  time  fixed  for  such  meeting.  The  said 
certificate  must  also  contain  all  the  requirements  prescribed  by 
section  two  hundred  and  ninety. 

Enacted  March  23,  1905;  stats.  1905,  p.  585. 
147  Cal.  666. 

Note. — See  note  to  §  586. 

Books  and  balance  sheets  to  be  kept  by  secretary — Stockholders' 
rights  to   inspect. 

§  588.  It  is  the  duty  of  the  secretary  of  every  corporation 
formed  for  the  purpose  of  mining,  or  conducting  mining  in 
California,  whether  such  corporation  be  formed  and  organized 
under  the  laws  of  the  State  of  California  or  of  any  other  state, 
territory,  or  foreign  country,  to  keep  at  some  place  within  the 
State  of  California  an  office  and  in  such  office  to  keep  a  com- 
plete set  of  books  showing  all  receipts  and  expenditures  of 
such  corporation,  the  sources  of  such  receipts,  and  the  objects 
of  such  expenditures,  and  also  all  transfers  of  stock.  All  books 
and  papers  must,  at  all  time.s  during  business  hours,  be  open 
to  the  inspection  of  any  stockholder.  He  is  entitled  to  be 
accompanied  by  an  expert,  and  to  make  copies  or  extracts  from 
any  such  books  or  papers.  He  ma.y.  at  reasonable  hours, 
examine  such  mining  property,  accompanied  by  an  expert,  take 
samples,  and  make  such  other  examination  as  he  may  deem 
necessary!  It  is  the  duty  of  the  directors,  on  the  second  Monday 
of  each  and  every  month,  to  cause  to  be  made  an  itemized 
account  or  balance  sheet  for  the  previous  month,  embracing  a 
full  and  complete  statement  of  all  disbursements  and  receipts, 
.showing  from  what  sources  such  receipts  were  derived,  and  to 
whom  and  for  what  ob.iect  or  purpose  such  disbursements  or 
payments  were  made  ;  also  all  indebtedness  or  liabilities  incurred 
or  existing  at  the  time,  and  for  what  the  same  were  incurred, 
and  the  balance  of  money,  if  any,  on  hand.  Such  account  or 
balance  sheet  must  be  verified  under  oath  by  the  president  and 
secretary,  and  posted  in  some  conspicuous  place  in  the  office  of 
the  company.  It  is  the  duty  of  the  superintendent-,  on  the  first 
Monday  of  each  month,  to  file  with  the  secretary  an  itemized 
account,  verified  under  oath,  showing  all  receipts  and  disburse- 


172  CIVIL  CODE.  §  588 

meuts  made  by  him  for  the  previous  month,  and  for  what  said 
disbursements  were  made.  Such  account  mu.st  also  contain  a 
verified  statement  showing  the  number  of  men  employed  under 
him,  and  for  what  purpose,  and  the  rate  of  wages  paid  to  each. 
He  must  attach  to  such  account  a  full  and  complete  report, 
under  oath,  of  the  work  done  in  said  mine,  the  amount  of  ore 
extracted,  from  what  part  of  mine  taken,  the  amount  sent  to  mill 
for  reduction,  its  assay  value,  the  amount  of  bullion  received, 
the  amount  of  bullion  shipped  to  the  office  of  the  company  or 
elsewhere,  and  the  amount,  if  any,  retained  by  the  superin- 
tendent. It  is  his  duty  to  forward  to  the  office  of  the  company  a 
full  report,  under  oath,  of  all  discoveries  of  ores  or  mineral- 
bearing  quartz  made  in  said  mine,  whether  by  boring,  drifting, 
sinking,  or  otherwise,  together  with  the  assay  value  thereof.  All 
accounts,  reports,  and  correspondence  from  the  superintendent 
must  be  kept  in  some  conspicuous  place  in  the  office  of  said  com- 
l)any,  open  to  the  inspection  of  all  stockholders. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  585. 

Note. — §§588,  589,  590.  The  statute  of  1873-4,  page  866,  as 
amended  in  1880,  page  134,  and  1897,  page  38,  is  codified  in  the 
above  section.s,  the  only  substantial  cliange  made  being  in  the 
omission  of  tlie  proviso  in  section  1  of  the  amendatory  act  of 
1897,  limiting  its  provisions  to  corporations  "wliose  stock  is  listed 
and  offered  for  sale  at  public  exchange."  The  provisions  of  the 
part  of  the  section  omitted  are  unconstitutional.  (See  Johnson 
vs.  Tautphaus,  127  Cal.  605.) 

The  following  citations  refer  to  the  act  of  1873-4,  which  is 
codified  in  §§  588,  589,  590. 

319  Cal.  3G3;  127  Cal.  287,  605. 

Right  of  stockholders  to  visit  mine  with  expert. 

§  589.  Any  stockholder  of  a  corporation  formed  under  the 
laws  of  this  state  for  the  purpose  of  mining,  is  entitled  to  visit, 
accompanied  by  his  expert,  and  examine  the  mine  or  mines 
owned  by  such  corporation,  and  every  part  thereof,  at  any  time 
he  may  see  fit ;  and  when  such  stockholder  applies  to  the  presi- 
dent of  such  corporation,  he  must  immediately  cause  the  secre- 
tary thereof  to  issue  and  deliver  to  such  applicant  an  order, 
under  the  seal  of  the  corporation,  directed  to  the  superintendent, 
commanding  him  to  show  and  exhibit  such  parts  of  said  mine 
or  mines  as  the  party  named  in  said  order  may  desii'e  to  visit 
and  examine.     It  is  the  duty  of  the  superintendent,  on  receiving 


§  589  CIVIL  CODE.  173 

such  order,  to  furnish  such  stockholder  every  facility  for  making 
a  full  and  complete  inspection  of  said  mine  or  mines,  and  of 
the  workings  therein,  and  to  accompany  said  stockholder  either 
in  person,  or  to  furnish  some  person  familiar  with  said  mine 
or  mines  to  accompanj'  him  in  his  visit  to  and  through  such  mine 
or  mines,  and  every  part  thereof.  If  the  superintendent  fails 
to  obey  such  order,  such  stockholder  is  entitled  to  recover, 
in  any  court  of  competent  jurisdiction,  against  the  corporation, 
the  sum  of  one  thousand  dollars,  and  traveling  expenses  to  and 
from  the  mine,  as  liquidated  damages,  together  with  costs  of 
suit.  In  case  of  such  refusal,  it  is  the  duty  of  the  directors  of 
the  corporation  forthwith  to  remove  the  officer  so  refusing,  and 
thei'eafter  he  must  not  be  employed  directly  or  indirectly  by 
the  corporation,   nor  must  any  salary  be  paid  to  him. 

Enacted  March  21,  1905  ;  stats.  1905,  p.  586. 

Note. — See  note  to  §  588. 

Liability  of  president  and  directors. 

§  590.  In  case  of  the  refusal  or  neglect  of  the  president  to 
cause  to  be  issued  by  the  secretary  the  order  mentioned  in  sec- 
tion five  hundred  and  eighty-nine,  such  stockholder  is  entitled 
to  recover  against  said  president  the  sum  of  one  thousand 
dollars  and  costs,  as  provided  in  the  last  section.  If  the 
directors  fail  to  have  the  reports  and  accounts  current  made  and 
posted  as  pi'ovided  in  section  five  hundred  and  eighty-eight,  they 
are  liable,  either  severally  or  jointly,  to  an  action  by  any  stock- 
holder complaining  thereof,  and  on  proof  of  such  refusal  or  fail- 
ure, he  may  recover  judgment  for  actual  damages  sustained  by 
him,  with  costs  of  suit.  Each  of  such  defaulting  directors  is  also 
liable  to  removal  for  such  neglect. 

Enacted  March  21,  1905  ;  stats.  1905,  p.  587. 
VII  Cal.  App.  Dec.  730. 

Note. — See  note  to  §  5  88. 


174  CIVIL  CODE.  §  r>91 

TITLE  Xlff. 

[Title  XIo.  added  March  21,   1905;  stats.   1905,  p.   588.] 

Corporations  for  the  Formation  of  Chambers  of 
Commerce,  Boards  of  Trade,  Mechanics'  Institutes, 
and  Other  Kindred  Associations. 

Sec.  591.     Formation,   organization,  and  powers  of. 
592.      Capital  stock  and  certificates  of. 

592a.   Powers  which  may  be  conferred  on  the  trustees,  direct- 
ors, or  the  executive  committee. 
592{).   Power  to  acquire,  sell,  possess,  and  use  property. 
592c.  The  by-laws. 

592d.   Power  to  levy  and  collect  assessments. 
592e.   Pre-existing  corporations   may   become  entitled   to   the 
benefit  of  this  title. 

Formation,   organization,   and    powers  of. 

§591.  (VjrporatioDs  for  the  formation  and  organization  of 
chambers  of  commerce,  boards  of  trade,  mechanics'  institutes, 
and  other  associations  formed  for  the  extension  and  promotion 
of  trade  and  commerce,  or  the  advancement,  protection,  and 
improvement  of  the  mechanic  arts,  may  be  formed  by  twenty  or 
more  persons,  who  must  execute  and  file  articles  of  incorporation 
as  prescribed  in  chapter  one  of  title  one  of  part  four  of  this 
code.  Upon  receiving-  from  the  secretary  of  state  a  certificate 
of  the  filing  with  him  of  a  certified  copy  of  its  articles  of  incor- 
poration, such  corporation  becomes  a  body  corporate,  and  by 
its  corporate  name  has  succession  for  the  period  limited  in  its 
articles,   and   power:    (1)   To   sue   and   be   sued   in   any   court; 

(2)  to  make  and  use  a  common  seal,  and  alter  it  at  pleasure; 

(3)  to  lease,  purchase,  hold,  sell,  mortgage,  convey  iu  trust, 
convey,  release  from  trust  or  mortgage,  such  real  and  personal 
property  as  hereinafter  provided;  (4)  to  elect  and  appoint  such 
officers,  agents,  and  servants  as  the  business  of  the  corporation 
may  require;  and  (5)  to  make  by-laws,  not  inconsistent  with 
the  laws  of  this  state,  providing  for  the  organization  of  the 
corporation  and  the  management  of  its  affairs.     No  corporation 


§  591  CIVIL   CODE.  175 

formed  under  this  title  must  engage,  in  any  mercantile,  com- 
mercial, or  mechanical  business. 

Enacted  March  21,  1905  ;  stats.  1905,  p.  588. 

Note. — §§  591,  592,  592a,  5926,  592c,  592d,  592c.  Adds  a  new 
title  to  the  code,  designated  "Corporations  for  the  formation  of 
chambers  of  commerce,  boards  of  trade,  mechanics'  institutes, 
and  other  kindred  organizations,"  tlie  matter  contained  in  said 
chapter^  being  a  codification  of  the  statute  of  1865-6,  page  469, 
as  amended  in  1867-8,  page  5,  and  1885,  page  76,  respecting 
chambers  of  commerce. 

Capital  stock  and  certificates  of. 

§  592.  Every  corporation  formed  under  this  title  may  have 
a  capital  stock  and  issue  certificates  to  represent  the  shares 
thereof,  if  the  articles  of  incorporation  contain  a  statement 
of  the  amount  of  its  capital  stock  and  the  number  of  shares 
into  which  it  is  divided.  The  rights  and  privileges  to  be  accorded 
to  stockholders  are  distinct  from  those  to  be  accorded  to  mem- 
bers at  large  of  the  corporation,  and  the  obligations  to  be  imposed 
upon  stockholders  in  the  same  relation  must  be  fixed  and  estab- 
lished in  the  by-laws  of  the  corporation. 

Enacted  March  21,  1905  ;  stats.  1905,  p.  588. 

Note. — See  note  to  §  591. 

Powers  which  may  be  conferred  on  tlie  trustees,  directors,  or 
the  executive  committee. 

§  592a.  The  corporation  may  confer  upon  a  board  of  trus- 
tees or  directors,  or  upon  a  body  to  be  styled  the  executive 
committee  of  the  corporation,  the  right  to  exercise  all  or  any  of 
the  corporate  powers,  if  the  articles  of  incorporation  state  that 
the  right  to  exercise  the  corporate  powers  is  to  be  confided  to 
such  board  of  trustees  or  directors  or  to  such  executive  com- 
mittee, and  the  number  of  trustees,  directors,  or  committee,  and 
the  names  of  those  selected  to  take  charge  of  the  affairs  of  the 
corporation  for  the  first  six  months. 

Enacted  March  21,  1905  ;  stats.  1905,  p.  588. 

Note. — See  note  to  §  591. 

Power  to  acquire,  sell,   possess,   and   use  property. 

§5926.  Every  corporation  formed  under  this  title  may  lease, 
purchase,  have,  hold,  use,  take  possession  of,  and  enjoy  in  fee 
simple  or  otherwise  any  personal  or  real  property  within  the 
state  necessary   for  the   uses  an<I   purposes   of   the   corporation. 


176  CIVIL  CODE.  §  5926 

and  may  sell,  lease,  deed  in  trust,  alien,  or  dispose  of  the  same 
at  its  pleasure. 

Enacted  March  21,  1905  ;  stats.  1905,  p.  589. 

Note. — See  note  to  §  591. 

The  by-laws. 

§  592c.  The  by-laws  of  any  corporation  formed  under  this 
title  without  capital  stock  must  prescribe  how  members  of  the 
corporation  shall  be  admitted  and  how  expelled,  and  how  officers, 
agents,  and  servants  shall  be  appointed.  Such  provisions  in 
the  by-laws  have  force  and  effect  as  between  private  parties  and 
the  corporation.  All  corporations  formed. under  the  provisions 
of  this  title  must  determine,  by  their  by-laws,  the  manner  of 
calling  and  conducting  their  meetings,  the  number  of  members 
that  constitute  a  quorum,  the  manner  of  levying  and  collecting 
assessments,  the  officers  of  the  corporation,  the  manner  of  their 
election  or  appointment  and  their  tenure  of  office,  and  may  pre- 
scribe suitable  penalties  for  the  violation  of  such  by-laws,  not 
exceeding  in  any  case  one  hundred  dollars  for  any  one  offense. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  589. 

Note. — See  note  to  §  591. 

Power  to  levy  and  collect  assessments. 

§  592(1.  Every  corporation  formed  under  the  provisions  of 
this  title  has  power  to  levy  and  collect,  from  the  members 
thereof,  for  the  purpose  of  paying  the  proper  and  legal  expenses 
of  the  corporation,  assessments  in  such  manner  as  may  be  pre- 
scribed by  its  by-laws,  but  not  otherwise. 

Enacted  March  21,  1905;  stats.  1905,  p.  589. 

Note. — See  note  to  §  591. 

Pre-existing  corporations  may  become  entitled  to  the  benefit  of 
this  title. 
§  592c.  Every  corporation,  association,  or  institution  formed 
prior  to  the  enactment  of  this  title,  for  any  of  the  purposes 
contemplated  thereby,  may,  by  a  vote  of  the  majority  of  its  mem- 
bers voting  at  a  meeting  called  for  that  purpose,  become  entitled 
to  the  benefit  thereof  on  filing  the  certificate  hereinafter  required. 
Notice  of  such  meeting  and  of  its  object  must  be  published  in  a 
newspaper  of"  general  circulation  in  the  county  in  which  the 
principal  place  of  business  of  the  corporation,  association,  or 
institution  is  located,  for  at  least  two  weeks  before  the  day  on 


§  592e  CIVIL  CODE.  177 

which  the  meeting  is  to  be  held.  Such  certificate  must  be  signed 
and  acknowledged  by  at  least  five  members  of  the  corporation, 
association,  or  institution,  must  contain  a  list  of  the  members 
who  desire  to  become  members,  and  must  be  filed  with  the  county 
clerk  of  such  county,  and  a  copy  thereof,  certified  by  him,  must 
be  filed  with  the  secretary  of  state.  Thereupon  such  corpora- 
tion, association,  or  institution  possesses  all  the  powers  and 
privileges  conferred  by  this  title. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  589. 

Note. — See  note  to  §  591. 


TITLE  XII. 

Religious,  Social,  and  Benevolent  Corporations,  and 
Other  Corporations  Not  Organized  for  Pecuni- 
ary Profit. 

Sec.  593.  Formation  of  corporations  not  for  profit.     Number  of 
directors. 

594.  Additional  facts,  articles  of  incorporation  to  set  out. 

595.  Amount  of  real  estate  limited. 

596.  Land  held  by  friendly  societies  and  pioneers. 

597.  Directors  to  make  verified  report  annually. 

598.  Sale  and  mortgage  of  real  estate. 

599.  What  may  be  provided  for  in  their  by-laws,  etc. 

600.  Members  admitted  after  incorporation. 

601.  No  member  to   transfer  membersliip,   etc. 

602.  Religious  societies  may  become  sole  corporations. 
602a.  Corporations  sole,  continuous  existence. 

603.  Churches  and  religious  societies,  liow  incorporated. 

604.  Same. 

605.  Consolidation   of  like   corporations  organized   for   pur- 

poses other  than  profit. 

Formation  of  corporations  not  for  profit — Number  of  directors. 
§  593.  Any  number  of  persons  associated  together  for  any 
purpose,  where  pecuniary  profit  is  not  their  object,  and  for 
which  individuals  may  lawfully  associate  themselves,  may.  ir^ 
accordance  with  the  rules,  regulations,  or  discipline  of  the  asso- 


178  CIVIL  CODE.  §  593 

ciatiou,  elect  directors,  the  number  thereof  to  be  not  less  thau 
three  nor  more  than  twenty-one.  and  may  incorporate  themselves 
as  provided  in  this  title. 

Amended  March  18,  1907;  stats.  1907,  p.  579. 

114  Cal.  300;  121  Cal.  321;  128  Cal.  2G0;  XXXVI  Cal. 
Dec.  328,  329. 

Note. — §  593.  The  change  consists  in  substituting  the  word 
"title"  for  the  word  "part,"  the  last  word  in  the  section. 

Benevolent  and  fraternal  associations,  secret  societies,  etc., 
exempt  from  insurance  laws  :   See  Pol.  C.  §  G30. 

Additional  facts,   articles  of  incorporation  to  set  out. 

§  594.  In  addition  to  the  reiiuivements  of  section  two  hun- 
dred and  ninety,  the  articles  of  incorporation  of  any  association 
mentioned  in  the  preceding  section  must  set  forth  the  holding 
of  the  election  for  directors  in  accordance  wdth  a  resolution 
adopted  at  the  last  prior  regular  meeting,  the  time  and  place 
Adhere  the  same  was  held,  and  that  notice  of  such  meeting  was 
given  to  the  members  of  said  association ;  that  a  majority  of 
the  members  of  such  association  who  were  present  voted  at  such 
election,  and  the  result  thereof ;  which  facts  must  be  veriiied  by 
the  officers  conducting  the  election. 

Amended  March  19,  1909;  stats.  1909,  p.  4G7 ;  in  effect  in 
sixty  days. 

52  Cal.  333  ;  128  Cal.  2G0,  2G1,  2G2. 

Amount  of  real  estate  limited. 

§  595.  All  such  corporations  may  hold  all  the  property  of 
the  association  owned  prior  to  incorporation,  or  acquired  there- 
after in  any  manner,  and  transact  all  business  relative  thereto ; 
but  no  su(;h  corporation  must  own  or  hold  more  real  estate 
than  may  be  necessary  for  the  business  and  objects  of  the 
association,  and  providing  burial  grounds  for  its  deceased  mem- 
bers, not  to  exceed  six  (6)  whole  lots  in  any  city  or  town, 
nor  more  than  fifty  (50)  acres  in  the  country,  the  annual 
increase,  income  or  profit,  whereof  must  not  exceed  fifty  thou- 
sand (.$50,000)  dollars;  provided,  that  any  such  corporation 
now  or  hereafter  having,  and  having  had  continuously,  for  the 
next  preceding  three  (3)  years,  the  care,  custody,  control,  and 
maintenance  each  year,  upon  an  annual  average  of  not  less  than 
one  hundred  (100)  orphans,  half  orphans,  find  indigent  minor 
children,  at  any  one  orphan  asylum,  shall  be  entitled  and  allowed 


§  595  CIVIL   CODE. 


179 


to  own  and  possess  any  number  of  acres  not  exceeding  one  hun- 
dred and  sixty  (100)  acres  of  land  in  the  country,  outside  of 
any  incorporated  city  or  town,  and  the  annual  income  or  profit 
of  which  does  not  exceed  fifty  thousand  ($50,000)  dollars;  and 
provided  further,  that  the  limitations  herein  provided  for  shall 
not  apply  to  corporations  formed,  or  to  be  formed,  under  section 
six  hundred  and  two  (G02)  of  the  Civil  Code,  when  the  land 
is  held  or  used  for  churches,  hospitals,  schools,  colleges,  orphan 
asylums,  parsonages,  or  cemetery  purposes,  or  to  corporations 
organized  for  social  purposes  and  purposes  of  recreation  and  not 
for  profit ;  and  provided  further,  that  the  limitations  herein  pro- 
vided for  shall  not  apply  to  corporations  organized  other  than  for 
profit,  when  the  land  is  timber  land,  and  not  exceeding  one  hun- 
dred and  sixty  (160)  acres  in  extent,  and  is  held  or  used  for  the 
purposes  of  the  organization,  in  which  case  said  land  shall  be 
subject  to  all  laws  regulating  the  preservation  of  forests. 
Amended  February  21.  1905;  stats.  1905,  p.  18. 
114  Cal.  300 ;  119  Cal.  483. 

Land   held   by   friendly  societies  and   pioneers. 

§  596.  In  addition  to  that  provided  for  in  the  preceding  sec- 
tion, friendly  societies  and  pioneer  associations  may  hold  such 
real  estate  as  may  be  necessary  to  carry  out  their  charitable 
purposes,  or  for  the  establishment  and  endowment  of  institu- 
tions of  learning  connected  therewith.  In  case  any  such  corpo- 
ration is  the  owner,  by  donation  or  purchase,  of  more  lands  than 
herein  or  in  preceding  section  provided  for,  such  surplus  must 
be  sold  and  conveyed  by  the  corporation  within  five  years 
after  its  acquisition.  Such  sale' may  be  made  without  the  order 
or  decree  of  the  superior  court,  as  hereinafter  provided. 

Amended  April  0.  1880  ;  amendts.  1880,  p.  0. 

Directors  to  make  verified  report  annually. 

§  597.  The  directors  must  annually  make  a  full  report  of 
all  property,  real  and  personal,  held  in  trust  for  their  corpora- 
tion by  them,  and  of  the  condition  thereof,  to  the  members  of 
the  association  for  which  they  are  acting. 

Enacted  March  21,  1872. 

Sale  and   mortgage  of  real  estate. 

§  598.  Corporations  of  the  character  mentioned  in  section 
five  hundred  and  ninety-three  may  mortgage  or  sell  the  real 
property  held  by  them,  and  may  secure  the  payment  of  indebted- 


180  CIVIL  CODE.  §  598 

ness  by  deed  of  trust  or  mortgage  upon  their  real  property,  upon 
obtaining  an  order  for  that  purpose  from  the  superior  court  held 
in  the  county  in  which  the  property  is  situated.  The  corpora- 
tions above  mentioned  may  also  issue  bonds,  payable  at  any 
time  within  twenty  years,  as  evidence  of  the  indebtedness  secured 
by  mortgage  or  deed  of  trust.  Before  making  the  order,  proof 
must  be  made  to  the  satisfaction  of  the  court  that  notice  of  the 
application  for  leave  to  sell  or  mortgage  or  execute  a  deed  of 
trust  has  been  given  by  publication  in  such  manner  and  for  such 
time  as  the  court  or  the  judge  has  directed,  and  that  it  is  to  the 
interest  of  the  corporation  that  leave  should  be  granted  as  prayed 
for.  The  application  mu.st  be  made  by  petition,  and  any  mem- 
ber of  the  corporation  may  oppose  the  granting  of  the  order,  by 
affidavit  or  otherwise.  But  nothing  herein  contained  shall  pro- 
hibit or  prevent  the  trustees  or  directors  of  such  corporation, 
under  such  rules  and  regulations  as  they  may  adopt,  from  dis- 
posing of  burial  plots  situated  in  grounds  of  such  corporation 
dedicated  for  burial  purposes,  without  making  such  application 
to  or  obtaining  an  order  from  court. 

Amended  March  20.  1891  ;  stats.  1891,  p.  179. 
XXXVI  Cal.  Dec.  328,  329,  3.30,  331. 

What  may  be  provided  for  in  their  by-laws,  etc. 

§  599.  Corporations  now  organized  or  that  may  hereafter  be 
organized  for  purposes  other  than  profit,  may,  either  in  their 
by-laws,  ordinances,  constitutions,  or  articles  of  incorporation, 
provide  for : 

1.  The  qualification  of  members,  mode  of  election  or  appoint- 
ment, and  terms  of  admission  to  membership ; 

2.  The  fees  of  admission  and  dues  to  be  paid  to  their  treasury 
by  members ; 

3.  The  number  of  i^ersons  that  shall  constitute  a  quorum  at 
any  meeting  of  the  corporation,  and  that  an  election  of  officers 
of  the  corporation  by  a  meeting  so  constituted,  or  the  appoint- 
ment or  selection  of  such  officers,  or  any  of  them,  in  any  manner 
required  by  the  rules,  regulations,  or  discipline  of  any  specified 
religious  denomination,  society,  or  church,  shall  be  as  valid  as 
if  made  at  an  election  at  which  a  majority  of  the  members  of 
the  corporation  were  present  and  voted  ; 

4.  The  expulsion  and  suspension  of  members  for  misconduct 
or  non-payment  of  dues,  also  for  restoration  to  membership ; 


§  599  CIVIL    CODE.  181 

5.  A  special  method  of  organizing  the  board  of  directors,  and 
a  special  method  of  increasing  or  diminishing  the  number  of 
directors  within  the  limits  as  to  number  prescribed  by  section 
five  hundred  and  ninety-three  of  this  code ; 

6.  Contracting,  securing,  paying,  and  limiting  the  amount  of 
their  indebtedness ; 

7.  That  the  rules,  regulations,  or  discipline,  for  the  time  being, 
of  any  specified  religious  denomination,  society,  or  church,  shall 
always  be  a  part  of  their  by-laws,  ordinances,  constitutions,  or 
articles  of  incorporation  ; 

8.  Other  regulations  not  repugnant  to  the  constitution  or  laws 
of  the  state  and  consonant  with  the  objects  of  the  corporation. 

Amended  March  31.  1897;  stats.  1897,  p.  24G. 

90  Cal.  243 ;  142  Cal.  495. 
By-laws  of  corporations  for  religious  and  benevolent  puii^ose 
also  referred  to  in  Civ.  C.  §  378. 

Members  admitted   after   incorporation. 

§  600.  Members  admitted  after  incorporation  have  all  the 
rights  and  privileges,  and  are  subject  to  the  same  responsibilities, 
as  members  of  the  association  prior  thereto. 

Enacted  March  21,  1872. 

No  member  to  transfer  membership,  etc. 

§  601.  No  member,  or  his  legal  representative,  must  dispose 
of  or  transfer  any  right  or  privilege  conferred  on  him  by  reason 
of  his  membership  of  such  corporation,  or  be  deprived  thereof, 
except  as  herein  provided. 

Enacted  March  21,  1872. 

Religious  societies  may  become  sole  corporatio.''iS. 

§  602.  Whenever  the  rules,  regulations,  or  discipline  of  any 
religious  denomination,  society,  or  church  so  require,  for  the 
administration  of  the  temporalities  thereof,  and  the  manage- 
ment of  the  estate  and  property  thereof,  it  shall  be  lawful  for  the 
bishop,  chief  priest,  or  presiding  elder  of  such  religious  denom- 
ination, society,  or  church  to  become  a  sole  corporation,  in  the 
manner  prescribed  in  this  title,  as  nearly  as  may  be,  and  with 
all  the  powers  and  duties,  and  for  the  uses  and  purposes  in  this 
title  provided  for  religious  incorporations,  and  subject  to  all  the 
conditions,  limitations  and  provisions  in  said  title  proscribed. 
Every  corporation  sole  shall,  however,  for  the  purposes  of  the 
trust,  have  power  to  contract  in  the  same  manner  and  to  the 


182  CIVIL  CODE.  §  602 

same  extent  as  a  natural  person,  and  .may  sue  and  be  sued, 
and  may  defend,  in  all  courts  and  places,  in  all  matters  and 
proceedings  whatever,  and  shall  have  authority  to  borrow  money 
and  give  promissory  notes  therefor,  and  to  secure  the  payment 
thereof  by  mortgage  or  other  lien  upon  property,  real  or  per- 
sonal ;  to  buy,  sell,  lease,  mortgage,  and  in  every  way  deal  in 
real  and  personal  property  in  the  same  manner  that  a  natural 
person  may,  and  without  the  order  of  any  court ;  to  receive 
bequests  and  devises  for  its  own  use  or  upon  trusts  to  the  same 
extent  as  natural  persons  may ;  and  to  appoint  attorneys  in 
fact.  The  articles  of  incorporation  to  be  filed  shall  set  forth 
the  facts  authorizing  such  incorporation,  and  declare  the  manner 
in  which  any  vacancy  occurring  in  the  incumbency  of  such 
bishop,  chief  priest,  or  presiding  elder  is  required  by  the  rules, 
regulations,  or  discipline  of  such  denomination,  society,  or  church 
to  be  filled,  which  statements  shall  be  verified  by  affidavit,  and 
for  proof  of  the  appointment  or  election  of  such  bishop,  chief 
priest,  or  presiding  elder,  or  of  any  succeeding  incumbent  of  such 
corporation,  it  shall  be  sufficient  to  record  with  the  clerk  of  the 
county  in  which  such  bishop,  chief  priest,  or  presiding  elder 
resides,  the  original  or  a  copy  of  his  commission,  or  certificate, 
or  letters  of  election  or  appointment,  duly  attested  ;  provided, 
all  property  held  by  such  bishop,  chief  priest,  or  presiding  elder 
.shall  be  in  trust  for  the  use,  purpose  and  behoof  of  his  religious 
denomination,  society,  or  church.  The  limitation  in  section  five 
hundred  and  ninety-five  shall  not  apply  to  corporations  formed 
under  this  section,  when  the  land  is  held  or  used  for  churches, 
hospitals,  schools,  colleges,  orphan  asylums,  parsonages,  or  ceme- 
tery purposes.  Any  judge  of  the  superior  court  in  the  county 
in  which  any  corporation  is  formed  under  this,  chapter  shall  at 
all  times  have  access  to  the  books  of  such  incorporation.  Any 
corporation  sole  heretofore  organized  and  existing  under  the 
laws  of  this  state  may  elect  to  continue  its  existence  under  this 
title  by  filing  a  certificate  to  that  effect,  under  its  corporate  seal 
and  the  hand  of  its  incumbent,  or  amended  articles  of  incorpora- 
tion, in  the  form  requii'ed  by  this  title,  and  as  prescribed  by  sec- 
tion two  hundred  and  eighty-seven  of  this  code  ;  and  from  and 
after  the  filing  of  such  certificate  or  amended  articles,  such  cor- 
poration shall  be  entitled  to  the  privileges  and  sul>ject  to  the 
duties,  liabilities  and  provisions  in  this  title  expressed. 
Amended  March  11,  1S1)7 ;  stats.  1897,  p.  101. 
94  Cal.  161. 


§  602ff  CIVIL  CODE.  183 

Corporations  sole,  continuoLis  existence.- 

§  602ff.  Every  corporation  sole  shall  have  continued  succes- 
sion and  continuous  existence  during  the  term  for  which  it 
is  organized  to  exist,  notwithstanding  vacancies  in  the  incum- 
bency thereof,  and  during  the  period  of  any  such  vacancy  such 
corporation  sole  shall  have  the  same  capacity  and  right  to  receive 
and  take  any  gift,  bequest,  devise  or  conveyance  of  property, 
either  as  grantee  for  its  own  use,  or  as  trustee,  and  to  be  or  be 
made  the  beneficiary  of  a  trust,  as  though  there  were  no  vacancy. 
No  agency  created  by  a  corporation  sole  by  a  written  instrument 
which  in  express  terms  provides  that  the  agency  thereby  created 
shall  not  be  terminated  by  a  vacancy  in  the  incumbency  of  such 
corpoi-ation,  shall  be  terminated  or  affected  by  the  death  of  the 
incumbent  of  such  corporation  or  by  a  vacancy  in  the  incumbency 
thereof,  however  caused. 

Enacted  March  21,  1007  ;  stats.  1907,  p.  836. 

Churches   and   religioi:s   societies,    how   incorporated. 

§  603.  Whenever  the  regulations,  rules,  or  discipline  of  any 
church  or  religious  society  require,  for  the  administration  of  the 
temporalities  thereof,  or  for  the  management  of  the  property  or 
estate  thereof,  any  diocese,  synod,  or  district  organization  of 
such  church  or  religious  society  may  elect  directors  and  become 
an  incorporation  in  the  manner  prescribed  in  this  title,  and 
with  all  the  powers  and  duties,  and  for  the  uses  and  purposes, 
in  this  title  provided  for  benevolent  or  religious  incorporations, 
and  subject  to  all  the  conditions,  limitations,  and  provisions  in 
said  title  prescribed,  except  as  otherwise  provided  in  this  sec- 
tion ;  provided,  that  directors  of  such  incorporation  may  be 
elected,  and  that  the  by-laws  for  its  government  may  be  made 
and  amended,  by  the  convention,  synod,  or  other  representative 
body  of  such  church  or  religious  society,  in  and  for  such  district, 
in  accordance  with  the  constitution,  by-laws,  discipline,  or 
regulation  thereof,  at  any  regular  meeting,  or  special  meeting 
called  for  that  purpose ;  and  provided,  the  certificate  of  incor- 
poration and  of  the  election  of  directors  to  be  filed  shall  be 
sufiiciently  signed  and  attested  by  the  signature  of  the  presiding 
officer  and  secretary  of  the  representative  convention,  synod, 
or  other  such  body,  in  which  such  election  is  held;  and  pro- 
vided, all  property  held  by  such  incorporation  shall  be  in  trust 
for  the  use,  benefit,  and  purpose  of  the  church  or  religious 
society  by  and  for  which  such  incorporation  was  formed,  and  in 


184  CIVIL  CODE.  §  603 

and  of  which  such  diocese,  synod,  or  other  district  is  an  organ- 
ized or  constituent  part ;  and  that  the  limitation  in  section  five 
hundred  and  ninety-five  shall  not  apply  to  corporations  formed 
under  this  section,  when  the  land  is  held  or  used  for  churches, 
hospitals,  schools,  colleges,  asylums,  parsonages,  or  cemetery 
purposes. 

Enacted  March  12,  1SS5 ;  stats.  1885,  p.  109. 
114  Cal.  300 ;  128  Cal.  262. 

Same. 

§  604.  Any  church  or  other  religious  association  in  this  state, 
composed  of  two  or  more  constituent  parishes,  missions,  con- 
gregations, or  societies,  having  a  common  convention,  synod, 
council,  or  other  representative  legislative  body,  may  be  incor- 
porated by  such  representative  body  under  this  part  and  sub- 
ject to  the  provisions  of  this  title,  except  as  otherwise  provided 
in  this  section.  The  representative  body  of  such  religious  asso- 
ciation electing  to  incorporate  the  same,  shall  determine  the 
name  of  the  proposed  corporation,  the  purpose  for  which  it  is 
formed,  the  place  where  its  principal  business  is  to  be  trans- 
acted, the  term  for  which  it  is  to  exist,  and  the  number  of  its 
directors,  and  shall  elect  its  directors  for  the  first  year.  The 
articles  of  incorporation  need  only  be  signed  and  acknowledged 
by  the  presiding  officer  and  secretary  of  such  representative 
body,  and  in  addition  to  the  requirements  of  section  two  hundred 
and  ninety,  shall  set  forth  the  proceedings  herein  prescribed 
for  said  representative  body,  and  that  the  same  were  duly  had 
in  accordance  with  the  constitution,  canons,  rules,  or  regulations, 
governing  the  other  proceedings  of  said  representative  body,  and 
the  time  and  place  thereof.  The  directors  of  such  corporation 
shall  be  elected  annually  by  the  representative  body  of  the  asso- 
ciation. The  representative  body  providing  for  such  incorpora- 
tion shall  frame  by-laws  for  the  corporation,  and  such  by-laws 
may  be  repealed  or  amended,  or  new  by-laws  may  be  adopted 
by  any  subsequent  representative  body  in  accordance  with  the 
constitution,  canons,  rules,  or  regulations  governing  the  other 
proceedings  of  such  representative  body.  Such  corporation  may 
hold  and  administer  not  only  the  common  property,  funds,  and 
money  of  such  association,  but  also  the  property,  funds,  and 
money  of  any  constituent  parish,  mission,  congregation,  or 
society.  The  limitation  in  section  five  hundred  and  ninety-five 
shall  not  apply  to  corporations  formed  under  this  section  when 


§  604  CIVIL  CODE.  185 

the  land  is  held  or  used  for  churches,  hospitals,  schools,  colleges, 
asylums,  parsonages,  or  cemetery  purposes. 
Enacted  March  11,  1887  ;  stats.  1887,  p.  104. 

Consolidation  of  like  corporations  organized  for  purposes  otlier 
than  profit. 
§  605.  Any  corporation  now  or  hereafter  organized  for  pur- 
poses other  than  profit,  may  consolidate  with  any  other  like 
association  or  associations,  or  corporation  or  corporations, 
created  either  under  the  laws  of  the  State  of  California,  or 
under  the  laws  of  any  other  state  or  territory,  so  as  to  form  a 
new  or  consolidated  corporation,  in  such  manner  as  may  be 
authorized  by  the  respective  boards  of  directors  or  trustees  of 
such  associations  or  corporations  by  resolution  adopted  at  meet- 
ings of  the  respective  boards  called  for  that  purpose.  The 
resolution  to  be  adopted  by  each  of  the  respective  boards  shall 
state  the  names  of  all  the  corporations  or  associations  to  be 
united  by  the  consolidation,  the  name  of  the  state  or  territory 
under  the  laws  of  which  they  are  created  or  organized,  and  the 
dates  of  their  respective  incorporation,  the  name  by  which  the 
new  or  consolidated  corporation  is  to  be  called  or  known,  the 
purposes  for  which  it  is  to  be  formed,  the  place  where  its  prin- 
cipal business  is  to  be  transacted,  the  term  for  which  it  is  to 
exist,  the  number  of  its  directors  or  trustees,  and  the  names 
and  residences  of  those  who  are  appointed  to  act  as  such  for  the 
first  year,  and  shall  designate  three  or  more  persons  by  whom 
articles  of  incorporation  of  the  new  or  consolidated  corporation 
shall  be  subscribed  and  filed  in  compliance  with  this  section. 
Articles  of  incorporation  of  the  new  or  consolidated  corpora- 
tion shall  be  subscribed  and  acknowledged  by  the  persons  so 
designated  as  last  aforesaid  in  the  manner  required  by  section 
two  hundred  and  ninety-two  of  this  code.  Said  articles  shall 
contain  and  set  forth  all  the  matters  required  by  section  two 
hundred  and  ninety  of  this  code,  and  in  addition  thereto  there 
shall  be  attached  to  said  articles  copies  of  the  aforesaid  resolu- 
tion of  the  several  associations  or  corporations  uniting  in  the 
consolidation,  certified  by  the  respective  secretaries  of  such 
associations  or  corporations  under  the  corporate  seals  thereof ; 
and  the  said  articles  of  incorporation  shall  in  the  body  thereof 
refer  to  the  said  resolutions  and  to  the  certified  copies  thereof 
so  attached,  and  by  such  reference  make  the  said  certified  copies 
a  part  of  the  said  articles.  The  said  articles  of  incorporation 
shall  be  filed  in   the  office  of  the  county   clerk   of   the  county 


186  CIVIL  couK.  §  605 

where  the  principal  business  of  the  new  or  consolidated  cor- 
poration is  to  be  transacted,  and  a  certified  copy  thereof  in  the 
office  of  the  secretary  of  state,  in  the  manner  required  by  this 
code  for  the  filing  of  original  articles  of  incorporation ;  and 
thereupon  the  secretary  of  state  shall  issue  to  the  corporation, 
over  the  great  seal  of  the  state,  a  certificate  in  manner  and  form 
as  provided  by  section  two  hundred  and  ninety-six  of  this  code. 
From  and  after  the  filing  of  such  certified  copy  of  the  articles 
of  incorporation  with  the  secretary  of  state  the  former  associa- 
tions or  corporations  uniting  in  the  consolidation  and  comprising 
the  component  parts  of  the  new  or  consolidated  corporation 
shall  cease  to  exist,  and  the  new  or  consolidated  corporation 
shall  succeed  to  all  the  rights,  duties  and  powers  of  the  com- 
ponent associations  or  corporations,  and  shall  be  possessed  of  all 
the  rights,  duties  and  powers  set  forth  in  its  ai'ticles  of  incor- 
poration not  inconsistent  with  this  title,  and  shall  be  subject  to 
all  the  liabilities  and  obligations  of  the  former  component  asso- 
ciations or  corporations,  and  shall  succeed  to  and  become  vested 
with  all  the  property  thereof,  both  real  and  personal,  of  every 
name  and  nature,  and  may  make  by-laws  and  do  all  things  per- 
mitted by  this  title. 

Amended  April   26,  1909;   stats.   1909,  p.   1094;   in   effect  in 
sixty  days. 

TITLE  Xlla. 

[Title  Xlla  added  March  21,   1905;  stats.   1905,   p.   590.] 

Societies  for  the  Prevention  of  Cruelty  to  Children 
and  Animals. 

Sec.  607.      Formation  of  corporations. 

607«.   Power  of  to  receive  and  dispose  of  property. 

607b.   Complaints  for  violating  any  law  relating  to  children 

or  animals. 
607c.   Magistrates  and  police   officers  to  aid   the   corporation 

and  its  officers. 
607d.   Pre-existing  corporations. 
607e.   Fines,    penalties,    and    forfeitures,    and    the    disposition 

to  be  made  thereof. 
aOlf.    Members    and    agents    may    be    authorized    to    act    as 

police  officers. 
607<7.   Children   who   may  be  arrested  and  brought   before  a 

court  or  magistrate  for  examination. 


§  (i07  CIVIL  CODE.  187 

Formation  of  corporations. 

§  607.  Corporations  may  be  formed  by  any  number  of  persons 
not  less  than  five,  a  majority  of  whom  must  be  citizens  and  resi- 
dents of  this  state,  under  tlie  general  provisions  of  this  code,  for 
the  purpose  of  the  prevention  of  cruelty  to  children  or  animals, 
or  both. 

Enacted  March  21,  1905;  stats.  1905,  p.  590. 

Note. — §§  607,  607a,  6076,  607c,  607ri,  607e,  607f,  607(;.  The 
subject-matter  of  the  above  sections  is  taken  from  the  statute  for 
1873-4,  page  499,  as  amended  in  1901,  page  285,  and  1903,  page 
69 — to  prevent  cruelty  to  animals;  the  statute  of  1875-6,  page 
830,  relating  to  the  incorporation  of  societies  for  the  prevention 
of  cruelty  to  children;  the  statute  of  1877-8,  page  812,  for  the 
protection  of  children;  and  the  statute  of  1877-8,  page  813,  rela- 
ting to  children.  Section  1  of  the  act  of  1875-6,  page  830,  is 
codified  in  section  607.  Subdivision  7  of  section  2  of  the  same  act 
is  codified  in  section  607o,  and  section  3  in  section  6076.  Section 
607c  is  a  codification  of  section  4  of  the  act  of  1875-6,  page  830, 
and  section  4  of  tlie  act  of  1873-4,  page  499.  Section  5  of  tlae  act 
of  1875-6,  page  830,  is  codified  in  section  607d ;  and  section  14 
of  tliat  act,  as  amended  in  1903,  page  69,  and  section  5  of  tlie  act 
of  1875-6,  page  830,  is  codified  in  section  607d  ;  and  section  14  of 
tlie  act  of  1873-4,  page  499,  as  amended  in  1903,  page  69,  and  sec- 
tion 5  of  the  act  of  1877-8,  page  813,  are  consolidated  and  codified 
in  section  607e.  Section  5  of  the  act  of  1873-4,  page  499,  as 
amended  in  1901,  page  285,  is  codified  in  section  GOlf,  and  section 
3  of  the  act  of  1877-8,  page  812,  is  codified  in  section  607fif,  with 
llie  exception  of  subdivision  5  thereof,  which  is  an  addition 
thereto,  to  cover  the  matters  referred  to  in  tlie  act  of  1877-8, 
page  813. 

Power  of  to  receive  and  dispose  of  property. 

§  607a.  Every  such  corporation  may  take  and  hold,  by  gift, 
purchase,  devise,  or  bequest,  any  property,  real  or  personal,  and 
dispose  of  the  same  at  its  pleasure ;  but  it  must  not  hold  real 
property  the  annual  income  of  which  exceeds  fifty  thousand 
dollars. 
•  Enacted  March  21,  1905;  stats.  1905.  p.  590. 
Note. — See  note  to  §  607. 

Complaints  for  violating  any  law  relating  to  children  or  animals. 

§  607?).     Any    su(;h    corporation,    or    any    member    or    officer 

thereof,  may  prefer  a  complaint  against  any  person  or  persons, 

befor-e    any    court    or    magistrate    having    jurisdiction,    for    the 


188  CIVIL  CODE.  §  6076 

violation  of  any  law  relating  to  or  affecting  children  or  animals, 
and  may  aid  in  the  prosecution  of  any  such  offender  before  such 
court  or  magistrate  in  any  proceeding  taken. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  590. 

Note. — See  note  to  §  607. 

Magistrates  and  police  officers  to  aid  the  corporation  and  Its 
officers. 

§  607c.  All  magistrates,  constables,  sheriffs,  and  officers  of 
police  must,  as  occasion  may  require,  aid  any  such  corporation, 
its  officers,  members,  and  agents,  in  the  enforcement  of  all  laws 
which  are  now  or  may  be  hereafter  enacted  relating  to  or  affect- 
ing children  or  animals. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  590. 

NoTE.^See  note  to  §  607. 

Pre-existing  corporations. 

§  607d.  The  provisions  of  this  title  extend  to  all  corporations 
heretofore  formed  and  existing  for  the  prevention  of  cruelty  to 
children  or  animals,  but  do  not  extend  or  apply  to  any  associa- 
tion, society,  or  corporation  which  uses  or  specifies  a  name  or 
style  the  same,  or  substantially  the  same,  as  that  of  any  previ- 
ously existing  society  or  corporation  in  this  state  organized  for 
a  like  purpose. 

Enacted  March  21,  1905;  stats.  1905,  p.  590. 

Note. — See  note  to  §  607. 

Fines,  penalties,  and  forfeitures,  and  the  disposition  to  be  made 
thereof. 
§  607e.  All  fines,  penalties  and  forfeitures  imposed  and  col- 
lected in  any  city  or  county,  or  city  and  county,  of  this  state 
under  the  provisions  of  any  law  of  this  state,  now  or  hereafter 
enacted,  relating  to  or  affecting  children  or  animals,  in  every 
case  where  the  prosecution  was  instituted,  aided,  or  conducted  by 
any  corporation  or  society  now  or  hereafter  existing,  incorpo- 
rated or  organized  for  the  prevention  of  cruelty  to  animals  or 
to  children  must,  except  where  otherwise  provided,  inure  to  such 
corporation  or  society  in  aid  of  the  purposes  for  which  it  was 
incorporated  or  organized.  In  addition  to  said  fines,  penalties  and 
forfeiture,  every  such  .society  incorporated  and  organized  for  the 
prevention  of  cruelty  to  animals,  or  for  the  prevention  of  cruelty 
to   children,   may,   in  each  city,   or  city   and   county   or  county 


§  607e  CIVIL  CODE.  189 

where  such  society  exists,  while  actively  engaged  in  enforcing 
the  provisions  of  the  laws  of  this  state,  now  or  hereafter  enacted, 
for  the  prevention  of  cruelty  to  animals  or  children,  or  arresting, 
or  prosecuting  offenders  thereunder,  or  preventing  cruelty  to 
animals  or  children  be  paid,  as  compensation  therefor,  from  the 
county,  or  city  and  county  general  fund  by  the  board  of  super- 
visors, a  sum  not  exceeding  one  hundred  and  fifty  dollars  per 
month,  in  the  same  manner  as  other  claims  against  said  county, 
or  city  and  county,  are  paid. 

Amended  March  20,  1909 ;  stats.  1909,  p.  574  ;  in  effect  in 
sixty  days. 

Note. — See  note  to  §  607. 

Members  and  agents  may  be  authorized  to  act  as  police  officers. 

§  607/.  All  members  aud  agents,  and  all  ofEcers  of  each  or 
any  of  .such  corporations  or  societies,  as  may  by  the  trustees 
thereof  be  duly  authorized  in  writing,  approved  by  a  judge  of 
the  superior  court  of  the  county  in  which  such  corporation  or 
society  was  organized,  and  sworn  in  the  same  manner  as  are 
constables  or  peace  officers,  have  power  lawfully  to  interfere 
to  prevent  the  perpetration  of  any  act  of  cruelty  upon  any 
child  or  dumb  animal,  and  may  use  such  force  as  is  necessary 
to  prevent  the  same,  and  to  that  end  may  summon  to  their  aid 
any  bystander. 

They  may  make  arrests  for  the  violation  of  any  penal  law 
relating  to  or  affecting  children  or  animals  in  the  same  manner 
as  a  constable  or  other  peace  officer ;  and  may  carry  the  same 
or  similar  weapons  that  such  officers  are  authorized  to  carry ; 
provided,  hotvever,  that  in  cities  of  the  first  class  no  such  mem- 
ber, officer  or  agent  of  such  societies  shall  carry  such  weapon 
until  permission  in  writing  has  been  first  granted  to  him  so  to 
do  by  the  board  of  police  commissioners  of  said  city  or  cities. 
All  such  members  and  agents  must,  when  making  such  arrests, 
exhibit  and  expose  a  suitable  badge  to  be  adopted  by  such  cor- 
poration or  society. 

All  persons  resisting  such  specially  appointed  officers,  when 
performing  any  duty  under  this  section,  are  guilty  of  a  mis- 
demeanor. 

Amended  February  20,  1909;  stats.  1909,  p.  33;  in  effect  in 
sixty  days. 

Note. — See  note  to  §  607. 


190  civir.  CODE.  §  <)07fir 

Children    who   may    be    arrested   and    brought    before   a    court    or 
magistrate  for  examination. 

§  607,r/.  Any  child  under  the  age  of  sixteen  years  that  comes 
within  any  of  the  following-  descriptions  named  : 

1.  Who  is  found  begging  or  receiving  or  gathering  alms 
(whether  actually  begging,  or  under  the  pretext  of  selling  or 
offering  for  sale  anything),  or  being  in  any  street,  road,  or 
public  place  for  the  purpose  of  so  begging,  gathering,  or  receiv- 
ing alms ; 

2.  Who  is  found  wandering  and  not  having  any  home  or  set- 
tled place  of  abode,  or  proper  guardianship,  or  visible  means  of 
subsistence  ; 

3.  Who  is  found  destitute,  either  being  an  orphan,  or  having 
a  vicious  parent  who  is  undergoing  penal  servitude  or  imprison- 
ment : 

4.  Who  frequents  the  company  of  reputed  thieves  or  prosti- 
tutes, or  houses  of  prostitution  or  assignation,  or  dance  houses, 
concert  saloons,  theaters,  or  variety  halls,  or  other  places  of 
amusement  where  spirituous,  malt,  or  vinous  liquors  are  sold, 
without  parent  or  guardian  ; 

5.  Who  is  engaged  or  used  for  or  in  any  business,  exhibition, 
vocation,  or  purpose,  in  violation  of  any  law  of  this  state — 
must  be  arrested  and  brought  before  a  court  or  magistrate, 
and  when,  upon  examination  before  such  court  or  magistrate. 
it  appears  that  any  such  child  has  been  engaged  in  any  of  the 
aforesaid  acts,  or  comes  within  any  of  the  aforesaid  descrip- 
tions ;  or  when,  upon  the  examination  or  conviction  of  any 
person  having  the  custody  of  a  child,  of  a  criminal  assault  upon 
it,  the  court  or  magistrate  before  whom  such  examination  or 
conviction  is  had  deems  it  desirable  for  the  welfare  of  such 
child  that  the  person  so  examined  or  convicted  should  be 
deprived  of  its  custody  thereafter ;  such  court  or  magistrate, 
when  it  deems  it  expedient  for  the  welfare  of  such  child,  may 
commit  such  child  to  an  orphan  asylum,  corporation,  or  society 
for  the  prevention  of  cruelty  to  children,  charitable  or  other 
institution,  or  make  such  other  disposition  thereof  as  now  is  or 
hereafter  may  be  provided  by  law  in  cases  of  vagrant,  truant, 
disorderly,  pauper,  or  destitute  children.  Any  corporation, 
organized   under  this  title,   or   now  existing,   for  the  prevention 


§  607f/  CIVIL  CODE.  191 

of  cruelty  to  children,  or  any  officer  or  member  thereof,  may 
institute  proceedings  under  this  section  for  the  welfare  of  any 
such  child. 

Enacted  March  21,  1905  ;  stats.  190."),  p.  591. 

Note. — See  note  to  §  607. 

See,  also.  Pen.  C.  §§  273c  and  2Tof. 


TITLE  XIII. 

Cemetery  Corporations. 

(See,  also.  "Cemeteries,"  and  ■'('rematovies."  statutes  at 
large,  Appendi.x.) 

Sec.  608.     How  much  land  m.iy  be  held,  and  how  dispo-sed  of. 

609.  Who  are  members  eligible  to  vote  and  hold  office. 

610.  May    hold    personal    property,    to    what    amount.      How 

disposed  of. 

611.  May    issue    bonds    to    pay    for    grounds.     Proceeds    of 

sales,  how  disposed  of. 

612.  May  take  and  hold  property  or  use  income  thereof,  how. 

613.  Interments    in     lot    and    effect    thereof.      Transfer    of 

rights  only  made,  how. 

614.  Lot  owners  previous  to  purchase  to  be  members  of  the 

corporation. 

615.  May  sell  lands,  how. 

616.  May  hold  property.     Income,  how  applied. 

How  much   land  may  be  held,  and  how  disposed  of. 

§  608.  Corporations  organized  to  establish  and  maintain 
cemeteries  may  take,  by  purchase,  donation,  or  devise,  land,  not 
exceeding  three  hundred  and  twenty  acres  in  extent,  in  the 
county  wherein  their  articles  of  incorporation  are  filed,  or  iu 
an  adjoining  county,  and  may  employ  any  surplus  moneys  in 
the  treasury  thereof  for  such  purpose ;  such  lands  to  be  held 
and  occupied  exclusively  as  a  cemetery  for  the  burial  of  the 
dead.  The  lands  must  be  surveyed  and  subdivided  into  lots 
or  plats,  avenues,  and  walks,  under  order  of  the  directors,  and 
a  map  thereof  filed  in  the  office  of  the  recorder  of  the  county 
wherein  the  lands  are  situated.  Thereafter,  upon  such  terms 
and  subject  to  such  conditions  and  restrictions,  to  be  inserted 


192  CIVIL  CODE.  §  60S 

in  the  conveyances,  as  the  by-laws  or  directors  may  prescribe, 
the  directors  may  sell  and  convey  the  lots  or  plats  to  purchasers. 

Amended  March  20,  1891 ;  stats.  1891,  p.  ISO. 
140  Cal.  232. 

Execution  of  deeds :  See  "Cemeteries,"  statutes  at  large,  Ap- 
pendix. 

Who  are  members  eligible  to  vote  and  htold  office. 

§  609.  Every  person  of  full  age  who  is  proprietor  of  a  lot  or 
plat  in  the  cemetery  of  the  corporation,  containing  not  less 
than  two  hundred  square  feet  of  land,  or,  if  there  be  more 
than  one  proprietor  of  any  such  lot,  then  such  of  the  proprie- 
tors as  the  majority  of  joint  proprietors  designate,  may,  in 
person  or  by  proxy,  cast  one  vote  at  all  elections  had  by  the 
corporation,  for  directors  or  any  other  purpose,  and  is  eligible 
to  any  office  of  the  corporation.  At  each  annual  meeting  or 
election,  the  directors  must  make  a  report  to  the  proprietors  of 
all  their  doings,  and  of  the  management  and  condition  of  the 
property  and  concerns  of  the  corporation. 

Enacted  March  21,  1872. 
140  Cal.  232. 

May  hold   personal   property,  to  what  amount — How  disposed  of. 

§  610.  Such  corporations  may  hold  personal  property  to  an 
amount  not  exceeding  five  thousand  dollars,  in  addition  to  the 
surplus  remaining  from  the  sales  of  lots  or  plats  after  the  pay- 
ments required  in  the  succeeding  section.  Such  surplus  must  be 
disposed  of  in  the  improvement,  embellishment,  and  preservation 
of  the  cemetery,  and  paying  incidental  expenses  of  the  corpora- 
tion, and  in  no  other  manner. 

Enacted  March  21,  1872. 
140  Cal.  232. 

May  issue  bonds  to  pay  for  grounds — Proceeds  of  sales,  how  dis- 
posed of. 
§  611.  Such  corporations  may  issue  their  bonds,  bearing 
intei-est  not  exceeding  twelve  per  cent  per  annum,  for  the  pur- 
chase of  lands  for  their  cemeteries,  payable  out  of  the  proceeds 
of  the  cemetery,  and  not  otherwise.  Sixty  per  cent  of  the  pro- 
ceeds of  sales  of  lots,  plats,  and  graves  must  be  applied  at  least 
every  three  months  to  the  payment  of  the  bonds  and  interest. 
Such  corporations  may  also  agree  with  the  person  or  persons 
from  whom  cemetery  lands  shall  be  purchased  to  pay  for  such 


§  611  cmL  CODE.  193 

lands,  as  the  purchase  price  thereof,  any  specified  share  or  por- 
tion, not  exceeding  one  half,  of  the  proceeds  of  all  sales  of  lots 
or  plats  made  from  such  lands ;  such  payment  to  be  made  at 
such  intervals  as  may  be  agreed  upon.  In  all  cases  where  ceme- 
tery lands  shall  be  purchased  and  agreed  to  be  paid  for  in  the 
manner  last  provided,  the  prices  for  lots  or  plats  specified  in  the 
by-laws,  rules,  or  regulations  first  adopted  by  such  association, 
or  prescribed  in  the  agreement  between  the  cemetery  and  the 
person  or  persons  from  whom  the  cemetery  lands  were  pur- 
chased, shall  not  be  changed  without  the  written  consent  of  a 
majority  in  interest  of  the  persons  from  whom  such  lands  were 
I'urchased.  their  heirs,  representatives,  or  assigns. 
Amended  April  KJ,  ISSO ;  ameudts.  1880,  p.  12. 
140  Cal.  232. 

May  take  and  hold  property  or  use  income  thereof,  how. 

§  612.  Any  corporation  organized  to  establish  and  maintain, 
or  to  improve,  a  cemetery,  may  take  and  hold  title  to  any  ceme- 
tery lot,  plot  or  grave,  devised  or  given  to  it  in  trust  for  the 
specific  purpose  of  perpetually  caring  for  the  same. 

Amended  March  25,  1901  :  stats.  1901,  p.  814. 
140  Cal.  232. 

Interments    in    lot    and    effect    thereof — Transfer    of    rights    only 
made,  how. 

§  613.  Whenever  an  interment  is  made  in  any  lot  or  plat 
transferred  to  individuaj  owners  by  the  corporation,  the  same 
thereby  becomes  forever  inalienable,  and  descends  in  regular 
line  of  succession  to  the  heirs  at  law  of  the  owner.  When  there 
are  several  owners  of  interests  in  such  lot  or  plat,  one  or  more 
may  acquire  by  purchase  the  interest  of  others  interested  in  the 
fee  simple  title  thereof,  but  no  one  not  an  owner  acquires 
interest  or  right  of  burial  therein  by  purchase;  nor  must  any 
one  be  buried  in  any  such  lot  or  plat  not  at  the  time  owning  an 
interest  therein,  or  who  is  not  a  relative  of  such  owner,  or  of  his 
wife,  except  by  consent  of  all  jointly  interested  ;  provided,  how- 
ever, that  when  all  the  bodies  buried  in  any  such  lot  shall  have 
been  removed  therefrom,  with  the  consent  of  the  owners  of  such 
lot,  it  shall  be  lawful  for  the  then  owners  of  such  lot  to  sell 
and  transfer  the  same  by  deed;  and  any  such  sale  and  transfer 
herolofore  made  is  hereby  declared  to  be  valid  and  effectual  to 
9— CL. 


194  CIVIL  roDK.  §  018 

transfer   the   title   to   the   purchaser,   any    law    to   the   contrary 
thereof  notwithstanding. 

Amended  February  10,  1885;  stats.  1885.  p.  1. 
115  Cal.  375 ;  140  Cal.  232. 

Lot  owners  previous  to  purchase  to  be  members  of  the  corpora- 
tion. 
§  614.     When   grounds   purchased   or   otherwise   acquired    for 
cemetery  purposes  have  been  previously  used  as  a  burial  ground, 
those  who  are  lot  owners  at  the  time  of  the  purchase  continue 
to  own  the  same,  and  are  members  of  the  corporation,  Avith  all 
the  privileges  a  purchase  of  a  lot  from  the  corpoi-ation  confers. 
Enacted  March  21,  1872. 
140  Cal.  232. 

May  sell  lands,  how. 

§  615.  Cemetery  corporations  may  sell  lauds  held  by  them 
upon  obtaining  an  order  for  that  purpose  from  the  superior 
court  of  the  county  whei'e  the  lands  are  situated.  Before  mak- 
ing the  order,  proof  must  be  made  to  the  satisfaction  of  the 
court  that  notice  of  the  application  for  leave  to  sell  has  been 
given  by  publication  in  such  manner  and  for  siich  time  a.s  the 
court  has  directed,  and  that  the  lands  are  not  required  for  and 
are  not  in  use  for  burial  purposes,  and  that  it  is  for  the  interest 
of  the  corporation  that  such  lands  be  sold.  The  application 
must  be  made  by  petition,  and  any  member  of  the  corporation 
may  oppose  the  granting  of  the  order  by  affidavit  or  otherwise. 

Enacted  March  4,  1889 ;  .stats.  1880,  ji.  (M. 
140  Cal.  232. 

May  hold  property — Income,  how  applied. 

§  616.  Any  corporation  organized  to  establish  and  maintain 
or  to  improve,  a  cemetery,  may  take  and  hold  any  property 
bequeathed,  granted,  or  given  to  it  in  trust,  to  apply  the  pro- 
ceeds or  income  thereof  to  any  and  all  of  the  following  pur- 
poses :  To  the  improvement  or  embellishment  of  such  cemetery 
or  of  any  lot  therein ;  or  to  the  erection,  renewal,  repair,  or 
preservation  of  any  monument,  fence,  or  other  structure  in  such 
cemetery;  or  to  the  planting  or  cultivation  of  trees,  shrubs,  or 
plants  in  or  around  such  cemetery,  or  any  lot  therein  ;  or  to  the 
improving,  ornamenting,  or  embellishing  of  such  cemetery,  or 
anv  lot  therein,  in  anv  other  niorlo  or  manner  not  inconsistent 


§  ''1''  CIVIL   CODE.  195 

with  the  purposes  for  which  such  cemetery  was  established  or 
is  being  maintained.  Such  property  and  tlie  proceeds  or  income 
thereof  shall  be  invested  and  reinvested  in  bonds  of  the  United 
States,  or  of  this  state,  or  of  any  municipality  of  this  state, 
or  in  first  mortgages  on  real  estate,  or  in  centrally  located 
income-producing  improved  real  estate  in  any  city,  or  city  and 
county  in  this  state,  if  such  investment  is  not  repugnant  to  the 
terms  of  the  bequest,  grant  or  gift. 

Amended  March  25,  1901 ;  stats.  1901,  p.  814. 
138  Cal.  .")7;  140  Cal.  232. 


TITLE  XIV. 

Agricultural  Fair   Corporations. 

(See,  also.  "Agricultural  Associations,"  statutes  at  large. 
Appendix.) 

Sec.  620.     May  acquhe  and  hold  real  estate,  how  much. 

621.  Shall  not  contract  debt.s  or  liabilities  exceeding  amount 

in  treasurj'. 

622.  Not  for  profit.     Alay  lix  fee,  etc.,  for  niember.sliip. 

May  acquire  and   hold   real  estate,   how  much. 

§  620.  Agricultural  fair  corporations  may  purchase,  hold,  or 
lease  any  quantity  of  land,  not  exceeding  in  the  aggregate  one 
hundred  and  sixty  acres,  with  such  buildings  and  improvements 
as  may  be  erected  thereon,  and  may  sell,  lea.se,  or  otherwise 
dispose  of  the  same  at  pleasure.  This  real  estate  must  be  held 
for  the  purpose  of  erecting  buildings  and  other  improvements 
thereon,  to  promote  and  encourage  agriculture,  horticulture, 
mechanics,  manufactures,  stock-raising,  and  general  domestic 
industry. 

Enacted  March  21,  1872. 

Shall  not  contract  debts  or  liabilities  exceeding  amount  in 
treasury. 
§  621.  Such  coiijoration  must  not  contract  any  debts  or  lia- 
bilities in  excess  of  the  amount  of  money  in  the  treasury  at  the 
time  of  contract,  except  for  the  purchase  of  real  pro])erty,  for 
which  they  may  create  a  debt  not  exceeding  five  thousand  dol- 


VM)  CIVIL  CODE.  §  621 

lars,  secured  by  mortgage  ou   the  property  of  the  corporatiou. 
The  directors  who  vote  ^therefor  are  personally  liable   for  any 
debt  contracted  or  incurred  in  violation  of  this  section. 
Enacted  March  21,   1872. 

Not  for  profit — May  fix  fee,  etc.,  for  membership. 

§  622.  Agricultural  fair  corporations  are  not  conducted  for 
profit,  and  have  no  capital  stock  or  income  other  than  that 
derived  from  charges  to  exhibitors  and  fees  for  membership, 
which  charges,  together  with  the  term  of  membership  and  mode 
of  acquiring  the  same,  must  be  provided  for  in  their  by-laws. 
Such  fees  must  never  be  greater  than  to  raise  sufficient  revenue 
to  discharge  the  debt  for  the  real  estate  and  the  improvements 
thereon,  and  to  defray  the  curi-ent  expenses  of  fairs. 

Enacted  March  21.  1872. 
i)3  Cal.  368. 


TITLE  XV. 

[Old  title  XV  repealed  and  now  lith^  XV  substituted  M;ii>'h  I'l. 
1905  ;  stat.s.  1905,  p.  593.] 

Corporations  to  Furnish  Light  for  Public  Use. 

(See,  also,  Constitution  of  California,  art.  XI,  S  lt»;  I*ol  C. 
§§4410  to  4413.) 

Sec.  629.     Duty  to  furnish  gas  or  electricity. 

630.  When  corporations  may  refuse  to  supply  gas. 

630«.  When  corporations  may  refuse  to  sujiply  electric  cur- 
rent for  liglit. 

631.  Right  to  enter  buildings  for  inspection. 

632.  Right  to  shut  off  supply  of  gas  or  electricity. 

Duty  to  furnish  gas  or  electricity. 

§  629.  Upon  the  application  in  writing  of  the  owner  or 
occupant  of  any  building  or  premises  distant  not  more  than  one 
hundred  feet  from  any  main,  or  direct  or  primary  wire,  of  the 
corporation,  and  payment  by  the  applicant  of  all  money  due 
from  him,  the  corporation  must  supply  gas  or  electricity  as 
required  for  such  building  or  premises,  and  can  not  refuse  on 
the  ground  of  any  indebtedness  of  any  former  owner  or  occu- 
pant thereof,   unless  the  applicant  has   undertaken   to  pay   the 


§  629  CIVIL  CODK.  197 

same.  If,  for  the  space  of  tcu  days  after  such  ayplieatiou,  the 
corporation  refuses  or  neglects  to  supply  the  gas  or  electricity 
required,  it  must  pay  to  the  applicant  the  sum  of  fifty  dollars 
as  liquidated  damages,  and  five  dollars  per  day  as  liquidated 
damages  for  every  day  such  refusal  or  neglect  continues  there- 
after. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  593. 
•    109  Cal.  144 ;  132  Cal.  211 ;, 141  Cal.  706,  711,  712. 

Note. — §§  629,  630,  630a,  631,  632.  The  purpose  of  the  amend- 
ment is  to  make  the  above  seotions  applicable  to  eleoti-ic  as  well 
as  to  gas-light  corporations.  To  accomplish  this,  the  following 
changes  have  been  made:  In  .section  629  the  words  "or  direct  or 
primary  wire"  are  inserted  after  "main,"  and  the  words  "or 
electricity"  are  inserted  in  two  places  after  "ga.s."  Section  630£t 
is  a  new  section,  to  extend  the  provisions  of  the  chapter  "Electric 
light  companies,"  and  provides  for  advances  similar  to  those 
made  to  gas  companies  by  .sub.scribers.  In  section  631  the  words 
"any  owner  or  manager  of  gas  or  electric  works,  or  agent  of 
such  owner  or  manager,  exhibiting  written  authority,  si.gned  by 
such  owner  or  manager,  or"  are  inserted  at  the  beginnin.g  of  the 
section  ;  the  words  "or  electric  light"  are  inserted  after  "gas"  ; 
the  words  "or  electricity"  are  inserted  after  "gas,"  and  the  words 
"or  electric  meters"  are  inserted  after  "meters."  In  section  632 
the  words  "or  electricitj"  are  added  after  "gas"  in  three  places, 
and  the  woid  "wires"  is  inserted  after  "pipes." 

When   corporations   may  refuse  to  supply  gas. 

S  630.  No  corporation  is  required  to  lay  .service  pipe  w  liere 
serious  olistacles  exist  to  laying  it,  unless  the  applicant,  if 
required,  deposits  in  advance,  with  the  corporation,  a  sum  of 
money  suSicient  to  pay  the  cost  of  layiug  such  service  ijipe,  or 
his  proportion  thereof. 

Enacted  March  21,  1905:  stats.  1905.  p.  593. 

Note. — See  note  to  §  62;i. 

When  corporations  may  refuse  to  supply  electric  current  for 
light. 
S  630f/.  \o  corporation  is  re(iuired  to  con;^truct  lines  for  the 
supply  of  electric  current  for  light  where  serious  obstacles  exist, 
nor  shall  such  corporation  be  required  to  supply  such  current 
from  a  direct  wire  at  a  distance  too  remote  from  the  gen- 
erating station,  to  insure  a  sufficient  supply  ;  nor  is  such  cor- 
l)rratiou    required    to  supply   electric   current    for   light   from    a 


198  crvii,  ( oDK.  §  630« 

primary  wire  carryiug  current  of  high  voltage,  uuless  the  appli- 
cant deposit,  in  .advance,  a  sum  of  money  sufficient  to  pay  the 
actual  costs  of  such  construction  and  for  the  appliances  required 
to  supply  electric  current  with  safety  at  the  proper  voltage. 

Enacted  March  21,  1905;  stats.  1905,  p.  598. 

Note. — See  note  to  §  629. 

Right  to  enter  buildings  for  inspection. 

§  631.  Any  owner,  manager  or  superintendent  of  gas  or 
electric  light  works,  or  agent  of  such  owner,  manager,  or  super- 
intendent, exhibiting  written  authority,  signed  l)y  such  owner, 
manager  or  superintendent,  or  any  agent  of  a  gas  or  electric 
light  corporation  exhil)itiug  written  authority  signed  by  the 
president  or  secretary  thereof  for  such  purpose,  may  enter  any 
building  or  premises  lighted  with  gas  or  electricity  supplied  by 
such  owner  or  corpoi'ation,  to  inspect  the  gas  meters  or  electric 
meters  therein  to  ascertain  the  quantily  of  gas  or  electricity 
supplied  or  consumed.  Every  owner  or  occupant  of  such  build- 
ing who  hinders  or  prevents  such  entry  or  inspection  must  pay 
to  the  owner  or  corporation  the  sum  of  fifty  dollars  as  liquidated 
damages. 

Enacted  March  21.  1!_M)5  :  stats.  1905.  p.  59r{. 

Note. — See  note  to  §  629. 

Riglit  to  shut  off  supply  of  gas  or  electricity. 

§  632.  All  gas  or  electric  light  corporations  may  shut  off 
the  supply  of  gas  or  electricity  from  any  person  who  neglects 
oi-  refuses  to  pay  for  the  gas  or  electricity  supplied,  or  the  rent 
of  any  meter,  pipes,  wires,  fittings  or  appliances,  provided  by 
the  corporation,  as  required  by.  his  contract:  and  for  the  pur- 
pose of  shutting  off  the  gas  or  electricity  in  such  case  any 
employee  of  the  corporation  may  enter  the  building  or  premises 
of  such  person,  between  the  hours  of  eight  o'clock  in  the  fore- 
noon and  six  o'clock  in  the  afternoon,  of  any  day,  and  remove 
therefrom  any  property  of  the  corporation  used  in  supplying 
gas  or  electricity. 

Enacted  March  21.  1905 ;  stats.  1905.  p.  594. 
132  Cal.  212 ;  141  Cal.  706,  70S. 

Note. — See  note  to  §  629. 


§  033  CIVIL   CODE.  190 


TITLE  XVI. 

[Old  title  XVI  repealed  and  new  title  XVI  substituted  March  23, 
]!)07  ;  stats.  19D7,  p,  923.] 

Building  and  Loan  Associations. 

(See,  also,  "Biiiklin;;'  and  Loan  ( 'otnmissioners,"  statutes  at 
large.  Appendix.) 

Sec.  633.  Formation,  powers,  and  organization. 

634.  Capital  stock. 

635.  Retiring  free  shares. 

636.  Maturity  of  stock. 

637.  Loans — Prohibitions — Penalties. 

638.  Interest — Securities — Repayment  of  loans. 

639.  Arrears  in  payments — Default — Forfeitures, 

640.  Purchase  of  real  estate. 

641.  Profits  and  losses. 

642.  Withdrawals. 

643.  Membership. 

644.  State  supervision  and  control. 

645.  Annual  report. 

646.  Foreign  corporations — Deposit  bj-. 

647.  Investment  in  and  loans  upon  bonds. 

648.  Definition  of  building  and  loan  association. 

64 8«.   Formation    of    building    and    loan    associations.      Rein- 
corporation of  e.xisting  associations. 

Formation,   powers,  and  organization. 

§  633.  Biiildiuj;  and  loan  associations,  as  hereinafter  lu  this 
title  defined,  shall  have  power  to  receive  money  and  accumu- 
late funds  to  be  loaned,  and  to  loan  the  same  to  their 
shareholders,  investors  and  others  ;  to  permit  shareholders  and 
investors  to  withdraw  part  or  all  of  their  payments,  investments 
or  stock  deposits,  and  to  prescribe  the  terms  and  conditions 
of  such  withdrawal ;  to  cancel  shares  of  stock,  the  payments 
on  which  have  been  withdrawn ;  to  receive  deposits  of  money 
and  to  execute  certiticates  therefor,  which  must  specify  the 
date,  amount,  rate  of  interest,  and  when  the  principal  and 
interest  are  payable,  and  also  the  withdrawal  value  thereof  at 
the  end  of  each  year;  to  borrow  money  for  the  purpose  of 
making  loans  and  of  paying  withdrawals  and  maturities;  and 
shall  have  sucli  further  powers  as  may  be  specifically  set  forth 


200  CIVIL  CODE.  §  633 

under  lliis  title.  Every  such  corporatiou  hereafter  formed,  in 
setting  forth  the  purposes  for  which  it  is  formed,  shall  state,  in 
its  articles  of  incorporation,  that  it  is  formed  to  encourage 
industry,  frugality,  home  building,  and  savings  among  its  share- 
holders and  members  ;  the  accumulation  of  s'avings  ;  the  loaning 
to  its  shareholders  and  members  of  the  moneys  or  funds  so 
accumulated,  with  the  profits  and  earnings  thereon,  and  the 
repayment  to  each,  of  his  savings  and  profits,  whenever  tliey 
have  accumulated  to  the  full  par  value  of  the  .shares,  or  at  any 
time  when  he  shall  desire  the  same  or  when  the  corporation  shall 
desire  to  rej^ay  the  same^  as  may  be  provided  in  the  by-laws  : 
and  shall  also  state  that  it  is  formed  for  all  the  purposes  speci- 
fied in  this  title. 

Enacted  March  28,  1907;  stats.  ]!»0T.  p.  028. 
VITI  Cal.  App.  Dec.  314. 

Capital  stock. 

g  634.  The  capital  slock  of  ever\  such  corporation  shall  be 
divided  into  shares  of  the  matured  or  par  value  of  one  hundred 
or  two  hundred  dollars  each,  as  provided  by  the  articles  of 
incorporation,  and  shall  be  paid  in  by  the  stockholders  in  the 
manner  provided  by  the  by-laws.  All  such  payments  shall  be 
called  dues.  The  shares  shall  be  issued  in  such  amounts  and 
at  such  times  as  the  board  of  directors  shall  determine,  and 
certificates  of  stock  shall  be  issued  to  each  shareholder  on  the 
lirst  ])ayment  of  dues  by  him.  Shares  pledged  as  security  for 
the  repayment  of  a  loan  shall  Ix-  called  pledged  shares,  and  all 
others.'  free  shares.  All  stock  matured  and  surrendered  or  can- 
celed, shall  become  the  properly  of  the  corporation  and  may-'lx' 
reissued.  The  capital  stock  shall  consist  of  the  accumulated 
dues  together  with  the  apportioned  pi'ofits  of  the  corporation. 
Any  such  corporation  shall  have  power,  by  its  by-laws,  to  impose 
and  collect  a  fine  from  each  stockholder,  not  exceeding  five  per 
cent  of  the  defaulted  amount,  for  every  neglect  or  refusal  to 
make  his  payment  when  payable.  Such  fines  shall  not  be 
cumulative.  Every  such  corporation  shall  also  have  power,  by 
its  by-laws,  to  charge  an  entrance  or  withdrawal  fee.  for  each 
share  of  .stock  it  may  issue,  not  exceeding  one  dollar  on  each 
share,  and  also  to  charge  a  transfer  fee,  not  exceeding  ten  cents 
on  each  share,  all  of  which  fees  shall  be  accounted  for  by 
the  corporation  liki'  other  funds  of  tlie  associatiou.     Xo  other  fee, 


§  634  CIVIL  CODE.  201 

charge  or  deduction  shall  ever  be  made,  or  permitted  to  be  made 
against  any  shareholder,  or  against  any  of  his  shares  hereafter 
issued,  or  the  dues  paid  in  thereon  for  the  purpose  of  creating 
a  fund  to  be  used  in  the  payment  of  current  or  running  expenses. 
The  capital  stock  may  be  issued  in  any  or  all  of  the  following 
forms:  installment  stock,  paid-up  stock,  and  guarantee  stock. 
Installment  stock  shall  be  stock  on  which  the  member  or  holder 
must  pay  to  the  corporation  on  each  share  held  by  him,  dues  in 
such  amounts  and  at  such  times  as  the  by-laws  may  provide 
and  on  which  the  payment  of  dues  must  continue  on  each  share 
until,  with  the  profits  allotted  thereto,  it  I'eaches  its  matured 
value  or  is  withdi-awn  or  canceled.  Such  stock  may  be  issued 
in  series,  and  when  so  issued,  payment  of  dues  on  shares  in 
each  series  shall  commence  with  the  issue  of  shares  in  such 
series.  No  share  of  a  prior  series  shall  be  issued  after  the 
issue  of  shares  of  a  new  series,  except  by  way  of  transfer. 
Paid-up  stock  shall  bo  stock  for  and  upon  which  the  owner  shall 
have  paid  to  the  corporation,  the  full  par  value  thereof  in  cash 
at  the  time  of  subscription  therefor,  and  upon  which  he  shall 
be  entitled  either  to  full  participation  in  the  net  profits  of  the 
corporation,  or  to  an  agreed  rate  of  interest  or  dividend  to  be 
specified  in  the  stock  certificate,  but  not  to  exceed  six  per  cent 
per  annum.  All  such  stock  shall  be  issued  under  such  regula- 
tions as  may  be  provided  in  the  by-laws  and  fully  set  forth  in 
each  certificate.  Guarantee  stock  shall  be  stock,  provided  by 
the  by-laws,  to  lie  set  apart  and  sold  as  a  fixed,  permanent  or 
guarantee  capital.  When  any  such  stock  has  been  once  so  set 
apart,  sold  and  issued,  it  shall  thereafter  remain  as  a  fixed,  per- 
manent and  guarantee  capital,  and  shall  be  subject  to  all  the 
conditions  and  liabilities  attaching  to  the  paid-in  capital  stock 
of  other  classes  of  corporations.  Such  guarantee  stock  shall 
protect  and  guarantee  all  other  stockholders  and  creditors  against 
any  loss,  and  when  once  paid  it  must  be  kept  unimpaired. 
Corporations  specified  in  this  title,  issuing  guarantee  stock,  may 
provide  in  their  by-laws  that  a  majority  of  the  board  of  directors 
shall  be  selected  from  the  holders  of  such  stock. 
Enacted  March  28,  1007:  stats.  1907.  p.  924. 

Retiring  free  shares. 

§  635.  The  directors  may  iu  their  discretion,  under  the  regula- 
tions prescribed  by  the  by-laws,  retire  any  free  shares  of  stock, 
other  than  those  of  the  guarantee  stock,  by  enforcing  the  with- 


202  CIVIL  CODE.  §  685 

ilrawal  thereof,  but  wheuever  the  withdrawal  of  auy  shares  is 
lo  be  enforced,  the  holders  thereof  must  be  paid  the  amount 
actually  paid  in,  and  the  full  amount  of  earnings  at  the  date 
of  retirement ;  provided,  that  shares  of  installment  stock  shall 
not  be  forced  out  until  after  they  shall  have  become  four  years 
old. 

Enacted  March  23,  1907  ;  stats.  1907,  p.  925. 

Maturity  of  stock. 

§  636.  When  any  stock  shall  have  reached  its  matured  value, 
payment  of  dues  thereon  shall  cease.  Borrowing  stockholders 
whose  loans  are  fully  iiaid  shall  have  their  securities  released 
and  returned  to  them.  Holders  of  free  shares  of  stock  shall 
be  paid  the  matured  value  thereof  out  of  the  funds  of  the  cor- 
poration, with  interest  at  such  rate  as  the  by-laws  shall  provide, 
from  the  time  the  board  of  directors  shall  declare  such  shares 
to  have  been  matured,  until  paid;  but  at  no  time  shall  more 
than  one  half  of  the  receipts  of  the  corporation  be  applicable 
to  the  payment  of  matured  shares  without  the  consent  of  said 
board.  The  order  of  the  payment  of  matured  shares,  if  not 
otherwise  determined  by  the  by-laws,  shall  be  in  the  numerical 
order  of  issuance. 

Enacted  March  23,  1907 ;  stats.  1907,  p.  925. 

Loans — Prohibitions — Penalties. 

§  637.  Loans  may  be  made  on  such  terms  and  conditions  as 
may  be  prescribed  by  the  board  of  directors  or  the  by-laws. 
Loans  may  be  made  for  a  definite  time  on  the  installment  plan. 
The  number  of  installments  in  which  a  loan  with  agreed  inter- 
est is  to  be  repaid,  must  be  stated  in  the  note  or  obligation 
evidencing  tlie  loan,  and  when  the  payments  have  been  made 
in  accordance  with  the  contract,  the  borrower  shall  receive  a 
release  of  the  security  given  by  him.  It  shall  be  unlawful  for 
any  director  or  officer  of  any  corporation  governed  by  this 
title,  directly  or  indirectly,  for  himself,  or  as  a  partner  or  agent 
for  others,  to  borrow  any  of  the  funds  of  such  corporation,  and 
any  officer  or  director  violating  the  provisions  of  this  section 
shall  be  guilty  of  a  felony.  Any  oSicer  or  director  of  any  such 
corporation  who  consents  on  behalf  of  such  corjjoration  to  make 
a  loan  to  any  officer  or  director  of  such  corporation  shall  be 
guilty  of  a  felony,  and  shall  also  be  personally  liable  to  the  cor- 
poration for  the  full  amount  thereof.     It  shall  be  unlawful  for 


§  637  oi\'iL  CODE.  208 

any  building  and  loan  association  to  loan  any  of  its  funds  upon 
any  of  its  own  guarantee  stock  as  security.  Any  ofiBcer  or 
director  of  an  association  who  shall  make  any  such  loan  for 
and  on  behalf  of  any  such  association  shall  be  personally  liable 
to  the  corporation  for  the  full  amount  thereof,  and  shall  also 
be  deemed  guilty  of  a  felony.  It  shall  be  unlawful  for  any 
such  corporation  to  invest  any  of  its  funds  in,  or  loan  any  of  its 
funds  upon,  any  mining  shares  or  mining  stocks  or  the  stocks 
or  bonds  of  any  corporation,  except  as  in  this  title  provided. 
Every  officer  or  director  who,  on  behalf  of  any  such  corporation 
shall  make  any  such  investment  or  loan,  or  who  shall  consent 
thereto,  shall  be  personally  liable  to  the  corporation  for  the 
whole  amount  expended  by  the  corporation  in  such  investment 
or  upon  such  loan,  and  shall  also  be  deemed  guilty  of  a  felony. 
Enacted  March  23,  1907  ;  stats.  1907,  p.  926. 

Interest — Securities — Repayment  of  loans. 

§  638.  The  board  of  directors  may  fix  from  time  to  time  the 
rate  of  interest  on  loans.  For  every  loan  made,  a  note  or  obli- 
gation, secui'ed  by  a  first  mortgage  or  deed  of  ti'ust  upon  unin- 
cumbered real  estate,  shall  be  given,  accompanied  by  a  pledge 
to  the  association  of  shares  of  stock,  as  collateral  security  for 
the  repayment  of  the  loan,  the  matured  value  of  which  shall 
equal  the  amount  of  the  loan,  except  that  there  need  be  no 
such  pledge  in  loans  made  to  others  than  members ;  or,  in  lieu  of 
a  mortgage  or  deed  of  trust,  there  may  be  pledged  to  the  asso- 
ciation, for  the  payment  of  the  loan,  free  shares,  but  any  such 
loan  must  not  exceed  ninety  per  cent  of  the  withdrawal  value 
of  such  shares  under  the  by-laws,  at  the  time  of  such  borrowing. 
At  the  discretion  of  the  board  of  directors,  a  borrower  may 
repay,  at  any  time,  the  loan  with  all  interest  and  arrears  thereon, 
upon  the  surrender  of  the  shares  pledged  to   secure   the   loan. 

Enacted  March  23.  1907 ;  stats.  1907,  p.  926. 

Arrears  in  payments — Default — Forfeitures. 

§  639.  Whenever  any  non-borrowing  member  shall  be  six 
months  in  arrears  in  the  payment  of  his  dues  upon  free  shares, 
the  secretary  may  give  him  notice  thereof  in  writing,  and  a 
statement  of  his  ari'earages,  by  mailing  the  same  to  him  at  his 
last  post  office  address  given  by  him  to  the  association ;  and  if  he 
shall  not  pay  all  arrearages  within  two  months  thereafter,  the 
board  of  directors  may,  at  their  option,  declare  his  shares  for- 


204  CIVIL  CODE.  §  639 

feited,  and  at  the  time  of  such  forfeiture,  the  withdrawal  value 
thereof  shall  be  determined  and  stated,  and  the  defaulting  mem- 
ber shall  be  entitled  to  withdraw  the  same  without  interest, 
upon  such  notice  as  shall  be  required  of  a  withdrawing-  share- 
holder. Whenever  a  borrower  shall  be  three  mouths  in  arrears 
in  the  payment  of  his  dues  or  interest  or  loan  installments,  the 
whole  loan  shall  become  due  at  the  option  of  the  board  of 
directors,  and  they  may  proceed  to  enforce  collection  upon  the 
securities  held  by  the  association.  The  withdrawal  viilue,  at 
the  time  of  exercising  such  option,  of  all  shares  pledged  as 
collateral  security,  shall  be  applied  to  the  payment  of  the  loan, 
and  said  shares  from  that  time  shall  be  deemed  surrendered  to 
the  association  and  canceled. 

Enacted  March  23,  1907 ;  stats.  1907,  p.  927. 
VIII  Cal.  App.  Dec.  613,  615. 

Purchase  of  real     state. 

§  640.  Any  such  association  may  purchase  at  any  sale,  public 
or  private,  any  real  estate  upon  which  it  may  have  a  mortgage, 
judgment,  lien,  or  other  incumbrance,  or  in  which  it  may  have 
an  interest,  and  may  sell,  convey,  lease,  or  mortgage  the  same 
at  pleasure  to  any  person  or  persons. 

Enacted  March  23,  1907 ;  stats.  1907,  p.  927. 

Profits  and  losses. 

§  641.  Profits  and  losses  shall  be  apportioned  at  least  annu- 
ally, and  shall  be  apportioned  to  all  shares  in  each  class  at  the 
time  of  such  apportionment,  according  to  the  actual  or  book 
value  thereof.  If  the  guarantee  capital  herein  provided  for, 
if  any  there  be,  together  with  the  reserve  fund,  or  if  the  reserve 
fund,  where  there  be  no  guarantee  capital,  shall  not  equal  five 
per  cent  of  the  outstanding  loans  at  the  time  of  each  apportion- 
ment of  profits,  the  directors  shall  set  aside,  as  a  reserve  fund, 
not  less  than  five  per  cent  of  the  net  profits  accruing  since  the 
last  prior  apportionment,  and  shall  continue  so  to  do  until  said 
fund  shall  amount  to  at  least  five  per  cent  of  the  loans  in  force, 
at  which  figure  said  fund  shall  thereafter  be  maintained.  Said 
reserve  fund  shall  at  all  times  be  available  to  meet  losses  arising 
from  any  source  not  heretofore  provided  to  be  assumed  by  the 
guarantee  capital.  Every  such  corporation  having  a  paid-in 
guarantee  capital  stock,  may  provide  in  their  by-laws,  that  an 
amount  not  exceeding  one  per  cent  per  annum  on  the  average 


§  641  CIVIL  CODE.  205 

loans  in  force,  shall  be  set  aside  from  and  out  of  the  net  profits, 
at  each  annual  distribution  thereof, — or  a  proportionate  amount 
at  each  semi-annual  distribution, — from  which  to  declare  divi- 
dends on  and  provide  a  reserve  fund  that  shall  be  specially 
applicable  thereto.  At  least  one  tenth  of  the  amount  so  set 
aside  shall  be  carried  to  such  reserve  fund  until  the  same  shall 
amount  to  at  least  fifty  per  cent  of  the  paid-in  guarantee  stock. 
Enacted  March  23.  1007  ;  stats.  1907.  p.  927. 

Withdrawals. 

§  642.  A  stockholder  or  investor,  desiring  to  withdraw  from 
any  such  corporation  or  to  surrender  a  part  or  all  of  his  stock,  or 
investment  certificate,  may  do  so  by  giving  thirty  days'  notice, 
in  writing,  of  his  intention  or  desire  so  to  do.  On  the  expira- 
tion of  such  notice,  he  is  entitled  to  receive  the  full  amount 
paid  in  upon  the  stock  or  investment  certificate  surrendered, 
exclusive  of  the  entrance  or  withdrawal  fee,  together  with  such 
proportion  of  the  earnings  thereon  as  the  by-laws  may  provide, 
or  as  may  be  fixed  by  the  board  of  directors ;  but  not  more 
than  one  half  of  the  monthly  receipts  in  any  one  month  must 
be  applied  to  withdrawals  for  that  month,  without  the  consent 
of  the  board  of  directors,  and  no  stockholder  must  be  permitted 
to  withdraw  whose  stock  is  pledged  to  the  corporation  as  security 
for  a  loan,  until  such  loan  is  fully  paid.  All  withdrawals  must 
be  paid  in  succession  in  the  order  that  the  notices  of  intention 
are  given.  Whenever  the  demands  of  withdrawing  stockholders 
or  investors  exceed  the  money  applicable  to  their  payment,  the 
notices  of  intention  to  withdraw  must  be  registered  in  the  order 
of  filing  and  payments  thereon  must  be  made  in  succession,  in 
the  order  that  such  notices  were  filed  and  registered.  The 
board  of  directors  may  permit  the  withdrawal  of  a  part  of  the 
accumulations  to  the  credit  of  a  stockholder  or  member,  on 
shares  of  installment  stock  not  issued  in  serial  form,  without 
thereby  reducing  the  number  of  shares  held  by  him. 

Enacted  March  23.  1907  ;  stats.  3907,  p.  927. 

Membership. 

§  643.  Any  person  of  full  age  and  sound  mind  may  become  a 
member  of  an  association  by  taking  one  or  more  shares  therein 
and  subscribing  to  the  by-laws,  and  annexing  to  his  signature 
his  post  office  address.     A  minor  may  hold  .shares  in  the  name 


206  CIVIL  CODE.  §  643 

of  a  ijarent.  guardian,  or  next  friend,  as  trustee.  The  shares 
of  stock  in  any  such  corporation  held  by  any  person,  to  the 
extent  of  one  thousand  dollars,  shall  be  exempt  from  execution. 

Enacted  March  23,  1907 ;  stats.  1907,  p.  928. 

See,  also.  Code  Civ.  Proc.  §  690,  subd.  39. 

State  supervision  and  control. 

§  644.  All  building-  and  loan  associations,  as  in  this  title 
defined,  doing  business  in  this  state,  shall  be  under  the  supei;- 
vision  and  control  of  such  official  or  ofiicials  as  are  by  law 
vested  therewith ;  and  except  in  the  manner  provided  in  this 
title,  no  corporation,  firm,  or  association  shall  conduct  or  carry 
on  the  business  of  accumulating  the  savings  of  its  shareholders, 
members,  or  investors,  and  loaning  such  accumulations  to  them, 
in  the  manner  of  building  and  loan  associations. 

Enacted  March  23,  3907;  stats.  1907,  p.  928. 

Annual  report. 

§  645.  Every  association  organized  under  the  provisions  of 
this  title,  and  every  other  association  doing  a  similar  business, 
shall  annually  make  a  full  report,  in  writing,  of  the  affairs  and 
condition  of  such  corporation,  within  thirty  days  after  its  annual 
meeting,  to  the  ofiicial  or  ofiicials  vested  with  powers  of  state 
supervision  and  license.  Such  reports  shall  be  verified  by  the 
oath  of  the  officers  making,  the  same,  and  a  copy  of  the  same 
shall  be  delivered  to  every  stockholder,  from  the  office  of  the  cor- 
poration, who  may  call  for  such  report.  Every  association  shall 
make  any  further  reports  which  the  said  official  or  officials  may 
require,  and  in  such  form  and  as  to  such  matters  relating  to 
the  conduct  of  the  business  of  the  a.ssociation  as  such  official 
or  officials  may  designate.  Any  willfully  false  statement  in 
making  and  verifying  said  report  shall  be  perjury.  Any  such 
a.ssociation  which  shall  fail  to  furnish  the  said  official  or  officials 
any  such  report  required,  within  thirty  days  after  demand, 
shall  forfeit  the  sum  of  ten  dollars  per  day  for  every  day  such 
report  shall  be  delayed  or  withheld,  which  may  be  recovered  in 
an  action  brought  by  the  attorney  general  in  the  name  of  the 
people  of  this  state  ;  and  all  moneys  so  recovered  shall  be  paid 
to  the  treasurer  of  this  state,  v/ho  shall  pay  the  same  into  such 
fund  as  may  be  provided  by  law,  for  the"  pui'poses  of  the  official 
or  officials  vested  with  power  of  supervision  and  licen.«e. 

Enacted  March  23,  1907;  stats.  1907,  p.  928. 

See,  also,  "Fraudulent  Reports."  statutes  at  lai-ge,  Appendfx. 


§  646  CIVIL  CODE.  207 

Foreign  corporations — Deposit  by. 

§  646.  No  huildiug  aud  loau  associalioii,  or  company,  associa- 
tion, or  corporation,  organized  under  the  laws  of  any  other 
state  or  territory,  to  carry  on  a  business  of  a  like  character  to 
that  authorized  by  this  title,  shall  be  allowed  to  do  business,  or 
to  sell  their  stock  in  this  state,  without  first  having  deposited 
with  the  state  controller  or  treasurer  the  sum  of  fifty  thousand 
dollars  in  money,  or  in  United  States  bonds  or  municipal  bonds 
of  this  .state,  or  in  mortgages  upon  real  estate  located  within 
this  state,  as  a  guarantee  fund  for  the  protection  aud  indemnity  of 
residents  of  the  State  of  California,  with  whom  such  companies, 
associations,  or  corporations  .shall  do  business:  the  fund  so 
deposited  to  be  paid  by  the  custodian  thereof,  to  the  residents 
of  California  only,  and  not  then  until  proof  of  claim  by  final 
judgment  has  been  filed  with  the  custodian  of  said  fund  against 
such  foreign  company,  association,  or  corporation.  Any  of  the 
securities  so  deposited  may  be  withdrawn  at  any  time  upon 
others  herein  provided  for,  of  like  amount,  being  substituted 
therefor.  Any  person  or  persons  who  shall  be  found  in  this 
state  as  agent,  or  in  any  other  capacity,  representing  such  foreign 
company,  association,  or  corporation,  v^•hich  has  not  complied 
with  the  provisions  of  this  section,  shall  be  deemed  guilty  of  a 
misdemeanor,  and  upon  conviction  shall  be  punished  by  a  fine 
not  exceeding  one  thousand  dollars,  or  by  imprisonment  in  tlie 
county  jail,  not  exceeding  twelve  months,  or  by  both  such  fine 
and  imprisonment. 

Enacted  March  2?,.  1!)07  :  stats.  1907.  p.  929. 

Investment  in  and  loans  upon  bonds. 

§  647.  Any  building  and  loan  association  may  invest  in  or 
loan  upon  bonds  of  the  United  States,  of  the  State  of  California, 
or  of  the  counties  or  municipalities  or  school  districts  of  said 
state,  but  not  to  exceed  tv.-enty-five  per  cent  of  its  capital. 

Enacted  March  23.  1907;  stats.  1907.  p.  929. 

Definition  of  building  and   loan  association. 

§  648.  The  name  "building  and  loan  associations"  as  used  in 
this  title  shall  include  : 

First — Corporations  formed  for  the  purpose  of  receiving 
money  from,  and  loaning  money  to,  their  members  only. 

Second — ^Corporations,  associations,  companies,  co-partner- 
ships,   and    individuals   transacting   the    business   of    issuing   or 


208  CIVIL  CODE.  §  648 

selling  bonds,  debentures,  certificates,  shares  of  stock,  or  other 
papers,  by  whatever  names  said  instruments  may  be  designated, 
whether  said  instruments  are  issued  for  money  paid  in  advance 
or  for  money  to  be  paid  in  installments,  but  with  an  intent, 
either  implied  or  expressed,  that  the  proceeds  or  accumulated 
installments  thereof  and  thereon  are  to  be  withdrawable  or 
repayable,  with  accumulated  profits,  at  some  future  fixed,  or 
indefinite  date  of  maturity  ;  provided  always,  that  this  section 
does  not  include  persons,  co-partnerships  or  corporations  engaged 
in  any  kind  of  banking  business. 

Amended  March  22,  1909  ;  stats.  1909,  p.  t)09 ;  in  effect  imme- 
diately. 

VIII  Cal.  App.  Dec.  314. 

Formation  of  building  and  loan  associations — Reincorporation 
of  existing  associations. 

§  648ff.  Building  and  loan  associations  may  be  formed  under 
this  title  with  or  without  guarantee  or  other  capital  stock,  with 
all  the  rights,  powers  and  privileges  and  subject  to  all  the 
restrictions  and  liabilities  set  forth  in  this  title.  If  formed 
without  any  capital  stock  or  with  guarantee  capital  stock  only, 
the  working  capital  may  be  accumulated  by  the  issue  of  mem- 
bership shares,  units  or  certificates  having  a  paid  up  or  ulti- 
mate matured  installment  value  of  one  hundred  or  two  hundred 
dollars  each,  and  entitled  to  all  the  rights,  powers  and  privi- 
leges and  subject  to  all  the  restrictions  and  lialiilities  provided 
in  this  title  for  shares  of  authorized  capital  stock  of  a  similar 
class.  Any  building  and  loan  association  heretofore  formed 
may  reincorporate  under  the  provisions  of  this  section  and  may 
substitute  membership  shares,  units  or  certificates  of  similar 
classes  for  its  outstanding  or  authorized  shares  of  capital  stock, 
other  than  guarantee  capital  stock,  by  the  unanimous  vote  of  its 
board  of  directors  and  by  a  vote  or  written  assent  of  the  stock- 
holders representing  at  least  two  thirds  of  the  subscribed  capital 
stock  and  by  filing  amended  articles  of  incorporation  with  the 
county  clerk  of  the  county  in  which  the  corporation's  principal 
place  of  business  is  located  and  a  copy  of  said  amended  articles, 
certified  by  such  county  clerk,  in  the  oSice  of  the  secretary  of 
state. 

New  section;  added  March  25,  1909;  stats.  1909,  p.  721;  iu 
effect  in  sixty  days. 


§  049  CIVIL  coi>E.  209 

TITLE  XVII. 

Colleges  and  Seminaries  of  Learning. 

Sec.  619.     How  incorporated. 

650.     Term  and  power  of  trvistees. 

CtI.      Reinoorporation  of  existing  corporation.s. 

How  incorporated. 

ij  649.  Any  uunihtT  of  persons  who  may  desire  to  establish  a 
college  or  seminary  of  IcarninL^-  may  incorporate  themselves  as 
provided  in  this  part,  except  that  in  lieu  of  the  requirements 
of  section  two  hundred  ninety,  the  articles  of  incorporation  shall 
contain : 

1.  The  name  of  the  corporation. 

2.  The  purpose  for  which  it  is  organized. 

.3.  The  place  where  the  college  or  seminary  is  to  be  conducted. 

4.  The  number  of  its  trustees,  which  shall  not  be  less  than 
five  nor  more  than  tweuty-five,  and  the  names  and  residences 
of  the  trustees.  The  term  for  which  the  trustees  named  and 
their  successors  are  to  hold  office  may  also  be  stated.  If  it  is 
desired  that  the  trustees,  or  any  portion  of  them,  shall  belon:; 
to  any  organization,  society,  or  cliurch,  such  limitation  shall  1  e 
stated. 

.">.  The  names  of  those  who  have  subscribed   money  or  prop- 
erty to  assist  in  founding  the  seminary  or  college,  together  with 
(he  amount  of  money  and  description  of  property  subscribed. 
•    Amended  February  20.  IflOO  ;  stats.  1909,  p.  30:   in   effect   in 
sixty  days. 

Term  and   power  of  trustees. 

§  650.  I'nless  otherwise  provided  in  the  articles  of  incorpora- 
tion the  board  of  trustees  shall,  as  soon  as  organized,  so  classify 
themselves  that  one  fifth  of  their  number  shall  go  out  of  office 
every  year,  and  thereafter  the  trustees  shall  hold  office  for  five 
years.  A  majority  of  the  trustees  shall  constitute  a  quorum  for 
the  transaction  of  business,  and  the  office  of  the  cori)oration 
shall  be  at  the  college  or  seminary. 

The  trustees  shall  have  the  pow-er : 

1.  To  elect,  by  ballot,  annually  one  of  their  number  as  presi- 
dent of  (he  board. 

'2.  Upon  the  death,  removal  out  of  the  stale,  or  other  vacancy 
in  the  office,  or  expiration  of  the  term  of  any   trustee,  to  elect 


210  CIVIL  CODE.  §  650 

another  in  his  place;  tJiovided,  that  where  there  are  jii'aduates 
of  the  institution,  such  graduates  may,  under  such  rules  as  the 
board  shall  prescribe,  nominate  persons  to  fill  vacancies  in  the 
board  of  trustees.  Such  nominations  shall  be  considered  by  the 
board,  but  it  may  reject  any  or  all  such  nominations,  and  of 
its  own  motion  appoint  others. 

3.  To  elect  additional  trustees;  proriiJcd.  the  whole  number 
elected  shall  never  exceed  twenty-five  at  any  one  time. 

4.  To  declare  vacant  the  seat  of  any  trustee  who  shall  absi-nl 
himself  from  eight  succeeding  meetings  of  the  board. 

5.  To  receive  and  hold,  by  purchase,  gift,  devise,  bequest,  or 
grant,  real  or  personal  property  for  educational  purposes  con- 
nected with  the  corporation,  or  for  the  benefit  of  the  institution. 

G.  To  sell,  mortgage,  lease  and  otherwise  use  and  dispose  of 
the  property  of  the  corporation  in  such  manner  as  they  shall 
deem  most  conducive  to  the  prosperity  of  the  corporation. 

7.  To  direct  and  prescribe  the  course  of  study  and  discipline 
to  be  observed  in  the  college  or  seminary. 

8.  To  apiK)int  a  president  of  the  college  or  seminary,  who 
shall  hold  his  oflice  during  the  pleasure  of  the  trustees. 

9.  To  appoint  such  professors,  tutors,  and  other  officers  as 
they  shall  deem  necessary,  who  shall  hold  their  offices  during  the 
pleasure  of  the  trustees. 

10.  To  grant  such  literary  honors  as  ;ire  usually  granted  by 
any  university,  college,  or  seminary  of  learning  in  the  United 
States  and  in  testimony  thereof  to  give  suitable  diplomas  under 
their  seal,  and  the  signature  of  such  officers  of  tlie  corporation 
and  the  institution  as  they  shall  deem  expedient. 

11.  To  fix  salaries  of  the  president,  professors,  and  other 
officers  and  employees  of  the  college  or  seminary. 

12.  To  make  all  by-laws  and  ordinances  necessary  ;iud  propei' 
to  carry  into  effect  the  preceding  powers  and  necessary  to 
advance  the  interests  of  the  college  or  seminary ;  provided,  that 
no  by-laws  or  ordinances  shall  conflict  with  the  constitution  or 
laws  of  the  United  States,  or  of  this  state. 

Amended  March  20,  1909;  stats.  1909,  p.  589;  in  effect  in 
sixty  days. 

Reincorporation  of  existing  corporations. 

§  651.  Any  educational  corporation,  or  body  claiming  to  be 
such,  now  existing,  may,  by  a  unanimous  vote  of  those  of  its 
trustees  present  at  a  special  meeting  called  for  that  purpose, 
and  of  which  due  notice  shall  be  given  to  each  trustee,  convey 


§  651  CIVIL  CODE. 


211 


all  its  proijei-ty,  i-ights,  aud  franchises  to  a  corporaliou  organ- 
ized under  this  title.  The  fact  that  due  notice  of  the  meeting 
was  given  to  each  trustee  shall  be  conclusively  proven  by  the 
entries  in  the  minutes  of  the  corporation  or  body  making  the  con- 
veyance. Said  minutes  shall  be  certified  to  be  correct  by  the 
president  aud  secretary. 

Enacted  March  14,  1885;  stats.   18S5.  p.  IIU. 

TITLE  XVIII. 

Consolidation  of  Colleges  and  Institutions  of  Higher 
Education. 

Sec.  652.      Societies   and   organizations   authmized    to   consolidate. 
Trustees.     Annual  reports. 
ti,')3.     Transfer   of  property.      Indebtedness.      Specific    grants. 
Dissolution. 

Societies     and     organizations     authorized     to     consolidate — Trus- 
tees— lArmuai  reports. 

§  652.  Whenever  any  benevolent,  religious  or  fraternal  organ- 
ization or  society,  having  a  grand  lodge,  assembly,  conference 
or  other  legislative  or  representative  head  in  the  State  of  Cali- 
fornia, having  two  or  more  colleges  or  institutions  of  higher 
education  under  its  patronage,  shall,  for  the  purpose  of  greater 
efficiency  and  simplicity  in  the  administration  of  its  educa- 
tional interest,  desire  to  consolidate  such  institutions  under  one 
management,  such  organization  or  society  shall  be  and  is  hereby 
authorized  to  consolidate  such  institutions  under  one  manage- 
ment by  complying  with  the  following  provisions  : 

Such  grand  lodge,  assembly,  conference  or  other  legislative 
or  representative  head  having  authorized  a  consolidation  of  its 
institutions,  a  new  corporation  shall  be  formed.  The  board  of 
trustees  of  the  new  corporation  shall  at  first  consist  of  the  per- 
sons constituting  the  boards  of  trustees  of  the  several  institu- 
tions, respectively  thus  consolidating,  and  others;  provided,  the 
number  of  trustees  shall  not  exceed  forty-five.  The  board 
of  trustees  shall  be  so  classified  that  the  term  of  office  of  one 
third  of  its  number  shall  expire  each  year  ;  the  successors  of 
such  trustees,  as  their  terms  expire,  shall  be  elected  by  such 
grand  lodge,  assembly,  conference  or  other  legislative  or  rep- 
resentative head,  at  its  annual  meeting. 


212  CIVIL  CODE.  §  652 

The  said  l)ourd  oi'  trustees  slitill  report  auuually  to  the  graud 
lodge,  conference,  assembly  or  other  legislative  or  representa- 
tive head  controlling  it,  the  condition  of  affairs  of  such  cor- 
poration, and  the  amount  and  manner  of  its  receipts  and 
expenditures. 

After  the  two  or  more  colleges  or  institutions  of  higher  edu- 
cation under  the  patronage  of  any  benevolent,  religious  or 
fraternal  organization  or  society,  having  a  grand  lodge,  assembly, 
conference  or  other  legislative  or  representative  head  in  the 
State  of  California  shall  have  become  consolidated  as  herein- 
above directed  or  specified,  the  board  of  trustees  of  the  new 
corporation,  consisting  at  first  of  the  persons  constituting  the 
boards  of  trustees  of  the  several  institutious,  respectively  thus 
consolidated,  may  be  reduced  in  number  after  said  board  of 
trustees  shall  have  tl'ansacted  the  business  of  said  corpora- 
tion for  a  period  of  five  years  after  such  consolidation.  Said 
number  shall  be  reduced  by  the  grand  lodge,  assembly,  con- 
ference or  other  legislative  or  representative  head  of  said  col- 
leges or  institutious  of  higher  education  in  the  following  man- 
ner, viz. :  At  any  annual  session  of  such  grand  lodge,  assembly, 
conference  or  other  legislative  or  representative  head,  there  shall 
be  dropped  from  the  number  of  trustees  to  be  elected  at  that 
session  of  such  grand  lodge,  assembly,  conference  or  other  legis- 
lative or  representative  head  such  a  number  of  trustees  as  those 
present  at  such  session  shall  determine,  provided,  however,  that 
at  no  time  shall  the  number  of  trustees  comjiosing  such  board 
be  less  than  fifteen. 

Amended  March  1.1.  DtO'.t ;  stats.  1!M)1»,  j).  ;isri ;  in  effect  in 
sixty  days. 

Transfer     of     property — Indebtedness — Specific     grants — Dissolu- 
tion. 

§  653.  The  several  boards  of  trustees  of  the  institutious  thus 
consolidated  shall  be  and  are  hereby  authorized  and  directed  to 
transfer  all  property,  real  and  personal,  held  by  them,  to  the 
new  corporation,  as  herein  constituted,  together  with  all  powers, 
]>rivileges,  and  authority  conferred  upon  or  enjoyed  by  them 
under  their  respective  charters  or  acts  of  incorporation.  The 
new  corporation  receiving  such  property  shall  assume  all  indebt- 
edness and  liabilities  of  such  institutions  as  are  thus  con- 
solidated,  but  shall   not   transfer  such  property  from   one  loca- 


§  653  CIVIL  CODE.  213 

tiou  to  auother,  except  by  au  affirmative  vote  of  uot  less  lliau 
three  fourths  of  the  said  board  of  trustees  of  the  new  corpora- 
tion, nor  divert  specific  grants,  donations,  or  bequests  from  the 
purposes  for  which  such  grants,  donations,  or  bequests  were 
made.  That  after  the  boards  of  trustees  have  conveyed  the 
property,  real  and  personal,  of  the  various  institutions  to  the 
new  corporation,  as  hereinabove  provided,  and  the  same  has 
been  accepted  by  the  said  new  corporation,  then  the  franchises 
held  by  the  corporations  thus  consolidating  shall  cease,  and  the 
said  corporations  shall  be  thereby  dissolved. 
Amended  March  9,  1S95  ;  stats.  1895,  p.  40. 


TITLE  XIX. 

LTitlc  XIX  added  March   I'l,    litOS  ;   staUs.    l!(05.   p.    594.] 

Co-operative  Business  Corporations. 

Ski,'.  ()^)?,(t.    Purposes  for  which  ina\-  be  formed. 

Purposes  for  which   may  be  formed. 

§  653(/.  Cooperative  business  corporations  may  be  formed  for 
doing  any  lawful  business,  and  dividing  a  portion  of  their  profits 
among  persons  other  than  their  stockholders.  Each  of  such 
corporations  may,  in  its  by-laws,  in  addition  to  the  matters 
specified  in  section  three  hundred  and  three,  provide  the  amount 
of  profits  which  must  be  divided  among  persons  other  than  its 
stockholders,  and  the  manner  in  which  and  the  persons  among 
whom  such  division  may  be  made. 

Enacted  March  21.  1905;  stats.  1905,  p.  594. 

jSioTE.— §  653a.  This  section  is  a  codiflcation  of  that  part  of 
the  statute  of  1877-8,  page  883,  defining  co-operative  corporations, 
and  the  section  is  placed  in  a  new  title  designated  "Co-operative 
Business  Corporations."  That  part  of  the  statute  declaring  that 
the  by-laws  may  provide  for  the  number  of  votes  to  which  each 
shareholder  shall  be  entitled  is  omitted  for  the  reason  that  it  is 
special  legislation,  and  probably  unconstitutional  within  tliK 
decision  in  Krause  vs.  Dnrbrniv,  127  Cal.  681. 


214  CIVIL  CODE.  §  B536 

TITLE  XX. 

[Title  XX  added  March  21,   1905  ;  stats.   1905,  p.   595.] 

Co-operative  Business  Associations. 

Sec.  653i>.  Formation  and  purposes  of. 

653c.  Rights,  interests,  and  liabilities  of  members. 

653d.  The  articles  of  association. 

6o3e.  The  by-laws. 

653/'.  Execution  against  the  association  or  its  members. 

QaSff.  Purposes  of  the  association,  liow  may  be  altered. 

653/i.  Powers  of  the  association. 

653i.  Consolidation  of  associations. 

653i.  Dissolution  and  winding  up  of  association. 

653fc.  Quo  warranto  to  inquire  into  the  right  of  an  associa- 
tion to  do'  business. 

65:;!/.  What  corporations  or  associations  are  not  affected  by 
this  title. 

Formation   and   purposes  of. 

§  653&.  Five  or  more  persons  may  form  a  eoilpf'i'ittive  asso- 
ciation for  the  transaction  of  any  lawful  business,  whether  for 
profit  or  not,  or  for  the  promotion  of  any  educational,  indus- 
trial, benevolent,  social,  or  political  purpose.  Such  association 
must  not  have  any  capital  stock,  l)ut  must  issue  membership 
certificates  to  each  member.  Such  certificate  can  not  be 
assigned,  so  that  the  assignee  can,  by  its  transfer,  become  a 
member  of  the  association,  but,  by  a  resolution  of  its  board  of 
directors,  such  certificate  may  be  transferred,  and  the  transferee 
made  a  member  iu  lieti  of  the  last  former  holder. 

Enacted  March  21,  1905;  stats.  1905,  p.  595. 

Note. — §§  653&,  653c,  653d,  653e,  653/=,  653^/,  653/i,  653^  653i, 
653fc,  653?.  The  statute  of  1895,  page  221,  is  codified  in  the 
above  sections,  which  are  placed  in  a  title  designated  "Co-opera- 
tive Business  Associations." 

Rights,    interests,    and    liabilities  of   members. 

§  653c.  In  such  association  the  rights  and  interests  of  all 
members  are  equal,  and  no  member  can  have  or  acquire  a  greater 
interest  therein  than  any  other  member  has.  At  every  election 
held  pursuant  to  the  by-laws  each  member  must  lie  entitled  to 
cast  one  vote  and  no  more.  All  persons  above  the  ago  of 
eighteen  years,  regardless  of  se.x.  are  eligible  to  membership,  if 


§  653c  CIVIL  CODE.  215 

otherwise  qualified  aud  elected  as  tlie  by-laws  may  provide.  The 
by-laws  must  provide  for  the  amount  of  the  indebtedness  which 
such  association  may  incur.  And  no  member  shall  be  respon- 
sible individually,  or  personally  liable,  for  any  of  the  debts  or 
liabilities  of  the  association  in  excess  of  his  proportion  of  such 
indebtedness ;  but  in  case  of  the  failure  and  insolvency  of  such 
association,  may  be  required  to  pay  any  unpaid  dues  or  install- 
ments which  have,  before  such  insolvency,  become  due  from 
such  member  to  the  association,  pursuant  to  its  by-laws. 

Enacted  March  21,  1905 :  stats.  1905,  p.  595. 

Note. — See  note  to  §  653b. 

The  articles  of  association. 

§  653<Z.  Every  association  formed  under  this  title  must  pre- 
pare articles  of  association,  in  writing,  stating :  The  name  of 
the  association,  the  purpose  for  which  it  is  formed,  the  place 
where  its  principal  business  is  to  be  transacted,  the  term  for 
which  it  is  to  exist,  not  to  exceed  fifty  years,  the  number  of  the 
directors  thereof,  and  the  names  and  residences  of  those  selected 
for  the  first  year,  the  amount  which  each  member  is  to  pay 
upon  admission  as  membership  fee,  and  that  each  member  sign- 
ing the  articles  has  actually  paid  in  such  sum,  and  that  the 
interest  and  right  of  each  member  therein  is  to  be  equal.  Such 
articles  of  association  must  be  subscribed  by  the  original  asso- 
ciates or  members,  aud  acknowledged  by  each  before  some  person 
competent  to  take  an  acknowledgment  of  a  deed  in  this  state. 
Such  articles  so  subscribed  aud  acknowledged  must  be  filed  in 
the  ofiice  of  the  clerk  of  the  county  wherein  the  principal  busi- 
ness of  the  association  is  to  be  transacted,  and  a  copy  thereof 
certified  by  such  clerk,  with  the  secretary  of  state,  who  must 
thereupon  issue  his  certificate  in  the  form,  and  having  the 
effect  prescribed  in  section  two  hundred  and  ninety-six. 

Enacted  March  21.  1905;  stats.  1905.  p.  595. 

Note. — See  note  to  §  653&. 

The  by-laws. 

§  653e.  Every  association  formed  under  this  title  must, 
within  forty  days  after  it  so  becomes  an  association,  adopt  a 
code  of  by-laws  for  the  government  and  management  of  the 
association,  not  inconsistent  with  this  title.  A  majority  of  all 
the  associates  is  necessary  to  the  adoption  of  such  by-laws,  and 
the   same   must    he   writt<'u    in    a    book,    and   subsfriliod    by    the 


216  CIVIL  CODE.  §  653e 

members  adopting  the  same,  and  the  same  cannot  be  amended  or 
modified  except  by  the  vote  of  a  majority  of  all  the  members, 
after  notice  of  the  proposed  amendment,  given  as  the  by-laws 
may  pi-ovide.  Such  association  may,  by  its  by-laws,  provide  for 
the  time,  place,  and  manner  of  calling  and  conducting  its  meet- 
ings;  the  number  of  directors,  the  time  of  their  election,  their 
term  of  office,  the  mode  and  manner  of  their  removal,  the  mode 
and  manner  of  filling  vacancies  in  the  board  caused  by  death, 
ivsigiiation,  removal,  or  otherwise,  and  the  power  and  authority 
of  such  directors,  and  how  many  thereof  are  necessary  to  the 
exercise  of  the  powers  of  such  directors,  which  must  be  at  least 
a  majority  ;  the  compensation  of  any  of  the  directors,  or  of  any 
ofiicer ;  the  number  of  the  officers,  if  any.  other  than  the  direct- 
ors, and  their  term  of  office ;  the  mode  of  removal,  and  the 
method  of  filling  a  vacancy ;  the  mode  and  manner  of  conducting 
business ;  the  mode  and  manner  of  conducting  elections,  and 
may  provide  for  voting  by  ballots  forwarded  by  mail  or  other- 
v.'ise,  provided  the  method  secures  the  secrecy  of  the  ballot ;  the 
mode  and  manner  of  succession  of  membership,  and  the  qualifi- 
cations for  membership,  and  on  what  conditions,  and  when  mem- 
bership must  cease,  and  the  mode  and  manner  of  expulsion  of 
a  member,  subject  to  the  right  of  an  expelled  member  to  have 
the  board  of  directors  appraise  his  interest  in  the  association 
in  either  money,  property,  or  labor,  as  the  directors  may  deem 
best,  and  to  have  the  money,  property,  or  labor  so  awarded 
him  paid,  or  delivered,  or  performed  within  forty  days  after 
expulsion  ;  the  amount  of  membership  fee,  and  the  dues,  install- 
ments, or  labor  which  each  member  must  be  required  to  pay 
or  perform,  if  any,  and  the  manner  of  collection  or  enforce- 
ment, and  for  forfeiting  or  selling  of  membership  interest  for 
non-payment  or  non-performance ;  the  method,  time,  and  manner 
of  permitting  the  withdrawal  of  a  member,  if  at  all,  and  how 
his  interest  must  be  ascertained,  either  in  money  or  property, 
and  within  what  time  the  same  must  be  paid  or  delivered  to 
such  member ;  the  mode  and  manner  of  ascertaining  the  inter- 
est of  a  member  af  his  death,  if  his  legal  representatives  or 
none  of  them  desire  to  succeed  to  the  membership,  and  whether 
the  same  must  be  paid  to  his  legal  representatives  in  money, 
or  property,  or  labor,  and  within  what  time  the  same  must  be 
paid,  or  delivered,  or  performed ;  such  other  things  as  may  lie 
proper   to  carry  out    fhf   ]iuri>ose   for   which   Iho  nss(")oiation  was 


S  U58f  CIVIL  couK.  217 

formed.  The  by-laws  must  provide  fur  the  time  aud  mauner  iu 
which  profits  must  be  divided  amoug  the  members,  and  what 
proportion  of  the  profits,  if  any,  must  be  added  to  the  common 
property  or  funds  of  the  association.  But  the  by-laws  may 
provide  that  the  directors  may  suspend  or  pass  the  payment  of 
any  such  profit,  or  installment  of  earnings,  at  their  discretion. 
The  by-laws  and  all  amendments  must  be  recorded  iu  a  book 
and  kept  in  the  office  of  the  association,  and  a  copy,  certified 
by  the  directors,  must  be  filed  in  the  office  of  the  county  clerk 
where  the  principal  business  is  transacted. 

Enacted  March  21,  1905;  stats.  1005,  p.  59(J. 

Note. — See  note  to  §  6.5 3Z>. 

Execution  against  the  association  or  its  members. 

§  653/.  The  property  of  such  association  is  subject  to  attach- 
ment and  execution  for  its  lawful  debts.  The  interest  of  a 
member  in  such  association,  if  sold  upon  execution,  or  any 
judicial  or  governmental  order  whatever,  can  not  authorize  the 
purchaser  to  have  any  right,  except  to  succeed,  as  a  member 
in  the  association,  with  the  consent  of  the  directors,  to  the  rights 
of  the  member  whose  interest  is  thus  sold.  If  the  directors 
choose  to  pay  or  settle  the  matter  after  such  sale,  they  may 
either  cancel  the  membership,  aud  add  the  interest  thus  sold 
to  the  assets  or  common  property  of  the  association,  or  reissue 
the  share  or  right  to  a  new  member  upon  proper  payment  there- 
for, as  the  directors  may  determine. 

Enacted  March  21,  1905  ;  stats.  1905,  p.  597. 

Note. — See  note  to  §  653 &. 

Purposes  of  the  association,   how  may  be  altered. 

S  653/7-  The  purpose  of  the  business  may  be  altered,  changed, 
modified,  enlarged,  or  diminished  by  a  vote  of  two  thirds  of  all 
the  members,  at  a  special  election  to  be  called  for  such  pur- 
pose, of  which  notice  must  be  given  the  same  as  the  by-laws 
provide  for  the  election  of  directors. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  597. 

Note. — See  note  to  §  653f>. 

Powers  of  the  association. 

§  653/(.  Every  association  formed  under  this  title  has  power 
of  succession  by  its  associate  name  for  fifty  years ;  in  such 
name  to  sue  and  be  sued  in  any  court ;  to  make  and  iise  a  com- 
mon  seal,   and  alter  the  same   at  pleasure:    to  receive   by  gift. 


21S  (  IVIL  CODE.  §  Gij3/l 

devise,  ov  purchase,  hold,  and  couvey  real  aud  personal  prop- 
erty, as  the  purposes  of  the  association  may  require;  to  appoint 
such  subordinate  agents  or  officers  as  the  business  may  require  ; 
to  admit  associates  or  members,  and  to  sell  or  forfeit  their 
interest  in  the  association  for  default  of  installments,  or  dues, 
or  work,  or  labor  required,  as  provided  by  the  by-laws;  to  enter 
into  any  and  all  lawful  contracts  or  obligations  essential  to 
the  transaction  of  its  affairs,  for  the  purpose  for  which  it  was 
formed,  and  to  borrow  money,  and  issue  all  such  notes,  bills, 
or  evidences  of  indebtedness  or  mortgage  as  its  by-laws  may 
provide  for;  to  trade,  barter,  buy,  sell,  exchange,  and  to  do  all 
other  things  proper  to  be  done  for  the  purpose  of  carrying  into 
effect  the  objects  for  which  the  association  is  formed. 

Enacted  March  21,  1905;  stats.  1905,  p.  597. 

Note. — See  note  to  §  653?;. 

Consolidation  of  associations. 

§  653i.  Two  or  more  associations  formed  aud  existing  under 
this  title,  or  under  any  preexisting  law  authorizing  their  forma- 
tion for  the  same  purposes,  may  be  consolidated,  upon  such 
terms,  and  for  such  purposes,  and  by  such  name,  as  may  be 
agreed  upon,  in  writing,  signed  by  two  thirds  of  the  members  of 
each  such  association.  Such  agreement  must  also  state  all  the 
matters  necessary  to  articles  of  association,  and  must  be  acknowl- 
edged by  the  signers  before  an  officer  competent  to  take  an 
acknowledgment  of  deeds  in  this  state,  and  be  filed  in  the  office 
of  the  county  clerk  of  the  county  wherein  the  principal  business 
of  the  association  is  to  be  transacted,  and  a  certified  copy  thereof 
in  the  office  of  the  secretary  of  state,  and  pay  the  same  fees  for 
filing  and  recording  as  required  by  this  code  for  the  filing  and 
recording  of  the  certified  copy  of  the  original  articles  of  associa- 
tion ;  aud  from  and  after  the  filing  of  such  certified  copy,  the 
former  associations  comprising  the  component  parts  cease  to 
exist,  and  the  consolidated  association  succeeds  to  all  the  rights, 
duties,  and  powers  of  the  component  associations,  and  is  pos- 
sessed of  all  the  rights,  duties,  aud  powers  prescribed  in  the 
agreement  of  consolidated  association  not  inconsistent  with  this 
title,  and  is  subject  to  all  the  liabilities  and  obligations  of  the 
former  component  associations,  and  succeeds  to  all  the  property 
and  interests  thereof,  and  may  make  by-laws  and  do  all  things 
l)ermitted  by  this  title. 

Enacted  March  21,  1905;  stats.  1005.  p.  598. 

Note. — See  note  to  §  653b. 


§  (5537  CIVIL  CODE.  219 

Dissolution  and   winding   up  of  association. 

§  653;'.  Any  association  formed  or  consolidatod  under  this 
title  may  be  dissolved  and  its  affairs  wound  up  voluntarily  by 
the  written  request  of  two  thirds  of  the  members.  Such  request 
must  be  addressed  to  the  directors,  and  must  specify  reasons 
why  the  winding  up  of  the  affairs  of  the  association  is  deemed 
advisable,  and  must  name  three  persons  who  are  members  to 
act  in  liquidation  and  in  winding  up  the  aft'airs  of  the  a.ssocia- 
tion,  a  majority  of  whom  must  thereupon  have  full  power  to 
do  all  things  necessary  to  liquidation  ;  and  upon  the  filing  of 
such  reijuest  with  the  directors,  and  a  copy  thereof  in  the  office 
of  the  county  clerk  of  the  county  where  the  principal  busine.ss 
is  transacted,  all  power  of  the  directors  ceases  and  the  persons 
appointed  must  proceed  to  wind  up  the  association,  and  realize 
upon  its  assets,  and  pay  its  debts,  and  divide  the  residue  of  its 
money  among  the  members,  share  and  share  alike,  within  a 
time  to  be  named  in  said  written  request,  or  such  further  time 
as  may  be  granted  them  by  tw^o  thirds  of  the  members,  in 
writing,  filed  in  the  office  of  said  county  clerk  ;  and  upon  the 
completion  of  such  liquidation  the  said  association  must  be 
deemed  dissolved.  No  receiver  of  any  such  association,  or  of 
any  property  thereof,  or  of  any  right  therein,  can  be  appointed 
1\V  any  court,  upon  the  application  of  any  member,  save  after 
judgment  of  dissolution  for  usurping  franchises  at  the  suit  of 
the  State  of  California  by  its  attoi-ney  general. 

Enacted  March  21,  1905:  stats.  10O.->.  p.  !i9S. 

Note. — See  note  to  §  653?*. 

Quo  warranto  to  inquire  into  the  right  of  an  association  to  do 
business. 

S  653/,'.  The  right  of  any  association  claiming  to  be  organ- 
ized under  this  title  to  do  business  may  be  inquired  into  by  quo 
warranto,  at  the  suit  of  the  attorney  general  of  this  state,  but 
not   otherwise. 

Enacted  March  21,  1905:  stats.  1905,  p.  599. 

Note. — See  note  to  S  <55.3&. 

What  corporations  or   associations  are  affected    by  this  title. 

§  653/.  This  title  is  not  applicable  to  railroads,  telegraph, 
telephone,  ])ankiug,  insurance,  building  and  loan,  or  any  other 
corporation,  unless  the  special  provisions  of  this  code,  applica- 
ble thereto,  are  complied  with. 

Enacted  March  21,  1905;  stats.   1005,  p.  590. 

Ndtio. — S'-e  not,'  to  §  ii)-,:U). 


220  CIVIL  CODE.  Go.Sm 

TITLE  XXI. 

[Title  XXI  added  P^ebruary  12,  1909;  stats.  1909,  p.  16.] 

Non-Profit   Co-operative  Agricultural,   Viticultural, 
and  Horticultural  Associations. 

Sec.  eSSiH.  Formation  and  purposes  of. 

&5Sn.  Membership. 

65 3o.  Articles  of  incorporation. 

65.32>.  By-laws. 

doSq.  Powers  of  association. 

GoZr.  Amendment  of  articles  of  incorporation. 

653s-.  Quo  warranto. 

Formation  and  purposes  of. 

§  653h(.  Three  or  more  persons  engaged  in  the  production, 
preserving,  drying,  packing,  shipping,  or  marketing  of  agricul- 
tural, viticultural  or  horticultural  products,  or  all  of  them,  may 
form  a  non-profit  cooperative  association  under  the  provisions 
of  this  title,  to  carry  on  said  business,  and  such  association  shall 
have,  and  may  exercise,  the  powers  authorized  by  this  title,  and 
the  powers  necessarily  incidental  thereto,  and  all  other  powers 
granted  to  private  corporations  by  the  laws  of  this  state,  except 
such  powers  as  are  inconsistent  with  those  granted  by  this  title. 

New  section ;  added  February  12.  1909 ;  stats.  1909.  p.  10 ;  in 
etfect  in  sixty  days. 

Membership. 

g  653,'(.  Such  association  shall  not  have  a  capital  stock,  and 
its  business  shall  not  be  carried  on  for  profit.  Any  person  or 
any  number  of  persons,  in  addition  to  the  original  incorporators, 
may  become  members  of  such  association,  upon  such  terms  and 
conditions  as  to  membership,  and  subject  to  such  rules  and 
regulations  as  to  their,  and  each  of  their,  contract  and  other  rights 
and  liabilities  between  it  and  the  member,  as  the  said  asso- 
ciation shall  provide  in  its  by-laws.  The  association  shall  issue 
a  certificate  of  membership  to  each  member,  but  the  said  mem- 
bership, or  the  said  certificate  thereof,  shall  not  be  assigned  by 
a  member  to  any  other  person,  nor  shall  the  assigns  thereof  be 
entitled  to  membership  in  the  association,  or  to  any  property 
rights  or  interest  therein.     Nor  shall  a  purchaser  at  execution 


§  653/(  CIVIL  CODE.  221 

sale,  or  auy  other  person  who  may  succeed,  by  operatiou  of  law 
or  othei'wise  to  the  property  interests  of  a  member,  be  entitled 
to  membership,  or  become  a  member  of  the  association  by  virtue 
of  such  transfer.  The  board  of  directors  may,  however,  by 
motion  duly  adopted  by  it,  consent  to  such  assignment  or  trans- 
fer and  to  the  acceptance  of  the  assignee  or  transferee  as  a 
member  of  the  association,  but  the  association  shall  have  the 
right,  by  its  by-laws,  to  provide  for  or  against  the  transfer  of 
membership  and  for  or  against  the  assignment  of  membership 
certificates,  and  also  the  terms  and  conditions  upon  which  any 
such  transfer  or  assignment  shall  be  allowed. 

New  section;  added  February  12.  3009;  stats.  1909.  p.  17;  in 
effect  in  sixty  days. 

Articles  of  incorporation. 

§  653o.  Each  association  formed  under  this  title  must  pre- 
pare and  file  articles  of  incorporation  setting  forth  : 

1.  The  name  of  the  association. 

2.  The  purpose  for  which  it  is  formed. 

3.  The  place  where  its  principal  business  will  be  transacted. 

4.  The  term  for  which  it  is  to  exist,  not  exceeding  fifty  years. 

5.  The  numl:)er  of  directors  thereof,  which  must  not  be  less 
than  three  and  which  may  be  any  number  in  excess  thereof, 
and  the  names  and  residences  of  those  selected  for  the  first 
year  and  until  their  successors  shall  have  been  elected,  and 
shall  have  accepted  office. 

6.  Whether  the  voting  power  and  the  property  rights  and 
interest  of  each  member  shall  be  equal  or  unequal,  and  if 
unequal  the  articles  shall  set  forth  a  general  rule  or  rules  appli- 
cable to  all  members  by  which  the  voting  power  and  the  property 
rights  and  interests,  respectively,  of  each  member  may  and 
shall  be  determined  and  fixed,  but  the  association  shall  have 
power  to  admit  new  members  who  shall  be  entitled  to  vote  and 
to  share  in  the  property  of  the  association  with  the  old  members, 
in  accordance  with  such  general  rule.  This  provision  of  the 
articles  of  incorporation  shall  not  be  altered,  amended,  or 
repealed  except  by  the  unanimous  written  consent  or  the  vote 
of  all  of  the  members. 

7.  Raid  articles  must  be  subscribed  by  the  original  membei"s 
and  acknowledged  by  one  of  them  before  an  officer  authorized 
by  tlie  law  of  this  state,   to   take  and  certify  acknowledgments 


222  civil,  CODE.  §  058o 

of  deeds  of  conveyance,  and  shall  be  filed  in  accordance  with 
the  provisions  of  section  296  of  this  code,  and  when  so  filed  the 
said  articles  of  incorporation  or  certified  copies  thereof  shall  be 
received  in  all  the  courts  of  this  state,  and  other  places,  as 
prima  facie  evidence  of  the  facts  contained  therein. 

New  section;  added  Febrnary  12.  1909:  stats.  1909.  p.  17:  in 
effect  in  sixty  days. 

By-laws. 

§  653p.  Eacli  association  incorporated  under  this  title  must, 
within  thirty  days  after  its  incorporation,  adopt  a  code  of 
by-laws  for  its  government  and  management  not  inconsistent 
with  the  provisions  of  this  title.  A  majority  vote  of  the  mem- 
bers or  the  written  assent  of  members  representing  a  majority 
of  the  votes  is  necessary  to  adopt  such  by-laws.  The  provisions 
of  .sections  303  and  304  of  this  code,  which  are  not  inconsistent 
with  the  provisions  of  this  title,  shall  apply  to  the  by-laws  of 
the  corporations  provided  for  in  this  title.  Each  association 
may  also,  by  its  by-laws  adopted  as  aforesaid,  provide  for  the 
following  matters  : 

1.  The  manner  of  removal  of  any  one  or  more  of  its  directors 
and  for  filling  any  and  ail  vacancies  in  the  board  of  directors. 

2.  The  number  of  directors  and  the  number  of  members  or 
votes  thereof  constituting  a  quorum. 

3.  The  conditions  upon  which  and  the  time  when  member- 
ship of  any  member  in  the  association  shall  cease ;  the  inode, 
manner  and  effect  of  expulsion  of  a  member,  subject  to  the  right 
of  the  expelled  member  to  have  the  board  of  directors  equitably 
appraise  his  property  interests  in  the  association  and  to  fix  the 
amount  thereof  in  money,  and  to  have  the  money  paid  to  him 
within  sixty  days  after  such  expulsion. 

4.  The  amount  of  membership  fee,  if  any.  and  the  amount 
which  each  member  shall  be  required  to  pay  annually,  or  from 
time  to  time,  if  at  all,  to  carry  on  the  business  of  the  associa- 
tion, and  also  the  compensation,  if  any,  to  be  paid  by  each 
member  for  any  services  rendered  by  the  association  to  him,  and 
the  time  of  payment  and  the  manner  of  collecting  the  same, 
and  for  forfeiture  of  the  interest  of  the  member  in  the  associa- 
tion for  non-payment  of  the  same. 

5.  The  number  and  qualifications  of  members  of  the  asso- 
ciation   and    the    conditions    precedent    to    membershii*    and    the 


S  [JOiip  CIVIL   CODE.  223 

method,  time  aucl  mtiuuer  of  permitting  members  to  withdraw, 
and  providing  for  the  assignment  and  transfer  of  the  interest 
of  members,  and  the  manner  of  determining  the  value  of  such 
interest  and  providing  for  the  purchase  of  such  interest  by  the 
association  upon  the  death,  withdrawal  or  expulsion  of  a  mem- 
ber or  upon  the  forfeiture  of  his  membership,  at  the  option  of 
the  association. 

6.  Permitting-  members  to  vote  by  their  proxies,  and  deter- 
mining the  conditions,  manner,  form  and  effect  thereof. 

New  section;  added  Feliruary  12,  1900;  stats.  1909,  p.  18; 
in  effect  in  sixty  days. 

Powers  of  association. 

§  653(y.  Each  association  incorporated  under  this  title  shall 
have  the  powers  granted  by  the  provisions  of  this  code  and 
other  laws  of  California  relating  to  private  corporations,  and 
shall  also  have  the  following  powers  : 

1.  To  appoint  such  agents  and  officers  as  its  business  may 
require,  and  such  appointed  agents  may  be  either  per.sons  or 
corporations ;  to  admit  persons  to  membership  in  the  association, 
and  to  expel  any  member  pursuant  to  the  provisions  of  its 
by-laws ;  to  forfeit  the  membership  of  any  member  for  violation 
of  any  agreement  between  him  and  the  association,  or  for  his 
violation  of  its  by-laws. 

2.  To  purchase  or  otherwise  acquire,  hold,  own,  sell  and  other- 
wise dispose  of  any  and  every  kind  or  kinds  of  real  and  personal 
property  necessary  to  carry  on  its  business,  and  to  acquire  by 
purchase  or  otherwise  the  interest  of  any  member  in  the  prop- 
erty of  the  association. 

3.  Upon  the  written  assent  or  by  a  vote  of  members  repre- 
senting two  thirds  of  the  total  votes  of  all  members  to  coop- 
erate with  any  other  cooperative  corporation  or  corporations 
for  the  coiiperative  and  more  economical  carrying  on  of  their 
respective  businesses,  by  consolidation  as  provided  in  section 
r>53t  of  this  code,  whereupon  the  effect  of  such  consolidation 
shall  be  the  same  as  declared  in  said  section  ;  or  upon  resolu- 
tion, adopted  by  its  board  of  directors,  to  enter  into  all  neces- 
sary and  proper  contracts  and  agreements,  and  to  make  all 
necessary  and  proper  stipulations  and  arrangements  with  any 
other  cooperative  corporation  or  corporations  for  the  coopera- 
tive  and    innr<>   cconomieal   carrying    on    of    its   business,    or    any 


224  CIVIL  CODE.  §  6535 

part  or  parts  thereof ;  or  any  two  or  more  cooperative  corpora- 
tions organized  under  this  title,  upon  resolutions,  adopted  by 
their  respective  board  of  directors,  may,  for  the  purpose  of 
more  economically  carrying  on  their  respective  businesses,  by 
agreement  between  them,  unite  in  employing  and  using,  or  sev- 
eral associations  may  separately  employ  and  use,  the  same 
methods,  means  and  agencies,  for  carrying  on  and  conducting 
their  respective  businesses. 

4.  Any  association  formed  or  consolidated  under  this  title 
may  be  dissolved  and  its  affairs  wound  up  voluntarily  by  the 
written  request  of  members  representing  two  thirds  of  the  total 
votes,  in  the  manner  and  with  the  effect  provided  in  section 
653;  of  this  code,  except  that  the  moneys  remaining  after  liqui- 
dation shall  be  divided  among  the  members  in  proportion  to 
their  property  interests  therein. 

New  section  ;  added  February  12.  1000  ;  stats.  1009.  p.  10  :  in 
effect  in  sixty  days. 

Amendment  of  articles  of   incorporation. 

§  653r.  Any  corporation,  whether  stock  or  membership,  here- 
tofore incorporated  under  the  laws  of  this  state  for  the  pur- 
pose of  engaging  in  and  carrying  on  the  business  specified  in 
section  GoSm  of  this  title,  the  stockholders  or  members  of  w'hich 
would  be  entitled  to  incorporate  under  the  provisions  of  this 
title,  may,  by  the  unanimous  written  assent  or  vote  of  all  the 
stockholders  or  members,  amend  its  articles  of  incoiijoration 
to  conform  to  the  provisions  of  this  title  in  the  manner  and 
with  the  effect  provided  in  section  .362  of  the  Civil  Code,  and 
from  the  time  of  filing  the  amended  articles,  such  corporation 
shall  have  the  same  powers  as  if  it  had  originally  incorporated 
under  the  provisions  of  this  title ;  provided,  however,  that  the 
debts,  obligations,  and  other  liabilities  against  such  corpora- 
tion or  against  the  members  or  the  stockholders  thereof,  exist- 
ing at  the  time  of  such  amendment,  shall  not  be  discharged 
or  their  collection  or  enfoi'cement  otherwise  impaired  :  and  pro- 
vided further,  that  the  respective  property  interests  of  the  several 
stockholders  by  virtue  of  their  ownership  of  shares  of  stock 
therein,  or  the  several  members  by  virtue  of  their  membership 
therein,  and  also  the  voting  power  of  each  of  them,  shall  be  deter- 
mined and  fixed  by  the  amended  articles  of  incorporation  in 
accordance  with  llie  pru\isions  of  subdivision  6  of  section  653o, 


S  iWiir  CIVIL  CODK.  --•• 

but  whicli  rights  shall  he  .siibjoet  to  th*-  li^lil  of  tlic  association 
to  admit  new  members. 

New  section;  added  February  12.  1009;  stats.  1909.  p.  19;  in 
effect  in  sixty  days.  » 

Quo  warranto. 

g  653.«.  The  right  of  an  association  claiming  to  be  organized 
and  incorporated  and  carryiug  on  its  business  under  this  title, 
to  do  and  to  continue  its  business,  may  he  inquired  into  by  quo 
warranto  at  the  suit  of  the  attorney  general,  but  not  otherwise. 

New  section;  added  Febiiiary  12.  1909;  stats.  1909.  p.  20;  in 
effect  in  sixty  days. 


TITLE  XXII. 

[Title  XXII  added  April  13,  1909  ;  stats.  1909,  p.   854.] 

Non-Profit  Co-operative  Corporations. 

Sec.  653t.      Formation  and  purposes  of. 
653m.     Member.ship. 
653v.     Articles  of  incorporation. 
653m;.    By-laws. 
653a;.     Powers  of  corpoi-ation. 
6533/.     Amendment  of  articles  of  incorporation. 
653s.     Quo  warranto. 
S5Sza.  Particular  corporations. 
653S&.  Voting. 

Formation  and  purposes  of. 

§  653t.  Non-protit  coiiperative  corporations  may  be  formed 
by  the  voluntary  association  of  any  three  or  more  persons  in 
the  manner  prescribed  in  this  title.  A  majority  of  such  persons 
must  be  residents  of  this  state,  and  such  corporation  shall  have 
and  may  exercise  the  powers  authorized  by  this  title,  and  the 
powers  necessarily  incident  thereto,  and  also  all  other  powers 
granted  to  private  corporations  by  the  laws  of  this  state,  except- 
ing such  powers  as  are  inconsistent  with  those  granted  by  this 
title. 

New  section;  added  April  1.3,  1909;  stats.  1909,  p.  854;  in 
effect  in  sixty  days. 


22fi  civil,  com:.  §  653m 

Membership. 

§  653i/.  Such  corporatiou  shall  not  have  a  capital  stock,  and 
its  business  shall  not  be  carried  on  for  profit.  Any  person  or 
any  number  of  persons-  including  and  in  addition  to  the  original 
incorporators,  may  become  members  of  such  corporation  upon 
such  terms  and  conditions  as  to  membership,  and  subject  to  such 
rules  and  regulations  as  to  their,  and  each  of  their,  contract  and 
other  rights  and  liabilities  between  it  and  the  member,  as  the 
said  corporation  shall  prescribe  in  its  by-laws.  The  corpora- 
tion shall  issue  a  certificate  of  membership  to  each  member,  but 
the  said  membership,  or  the  said  certificate  thereof,  shall  not, 
except  as  herein  provided,  be  assigned  by  a  member  to  any  other 
person,  nor  shall  the  assigns  thereof  be  entitled  to  membership 
in  the  corporation,  or  to  any  property  rights  or  interest  therein, 
nor  shall  a  purchaser  at  execution  sale,  or  any  other  person  who 
may  succeed,  by  operation  of  law  or  otherwise,  to  the  property 
interests  of  a  member,  be  entitled  to  membership,  or  become  a 
member  of  the  corporation  by  virtue  of  such  transfer.  The 
board  of  directors  may,  however,  by  motion  duly  adopted  by  it, 
consent  to  such  assignment  or  transfer,  and  to  the  acceptance  of 
the  assignee  or  transferee  as  a  member  of  the  corporation.  The 
corporation  shall  also  have  the  right,  by  its  by-laws,  to  provide 
for  or  against  the  transfer  of  membership  and  for  or  against  the 
assignment  of  membership  certificates,  and  also  the  terms  and 
conditions  upon  which  any  such  transfer  or  assignment  shall  be 
allowed. 

New  section;  added  April  V^,  1909;  stats.  1909,  p.  854;  in 
effect  in  sixty  days. 

Articles  of   incorporation. 

§  653);.  Each  corporation  formed  under  this  title  must  pre- 
pare and  file  articles  of  incorporation  in  writing  setting  forth: 

1.  The  name  of  the  corporation. 

2.  The  purpose  for  which  it  is  formed. 

.3.  The  place  where  its  principal  business  will  be  transacted. 

4.  The  term  for  which  it  is  to  exist,  not  exceeding  fifty 
years. 

5.  The  number  of  directors  thereof,  which  must  not  be  less 
than  three  and  which  may  be  any  number  in  excess  thereof,  and 
the  names  and  residences  of  those  selected  for  the  firet  year  and 
until  their  successors  shall  have  been  elected,  and  shall  have 
accepted  office. 


§  (>53r  civil,  CODE.  227 

6.  Whether  the  voting  power  iiurl  thf  propt-rty  rights  aud 
interest  of  each  member  sliall  be  equal  or  unequal,  and  if 
unequal  the  articles  shall  set  forth  a  general  rule  or  rules 
applicable  to  all  members  by  which  the  voting  power  and  the 
property  rights  aud  interests,  respectively,  of  each  member  may 
and  shall  be  determined  aud  fixed,  but  the  corporation  shall 
have  power  to  admit  now  members  who  shall  be  entitled  to 
vote  and  to  share  in  the  property  of  the  corporation  with  the 
old  members,  in  accordance  with  such  general  rule. 

7.  Said  articles  of  incorporation  shall  be  subscribed  by  three 
or  more  of  the  original  memlters,  a  majority  of  whom  must  be 
residents  of  this  state,  and  acknowledged  by  each  before  some 
officer  authorized  to  take  aud  certify  acknowledgments  of  con- 
veyances of  real  property,  and  shall  be  filed  in  all  respects  in 
accordance  with  the  provisions  of  section  296  of  this  code,  and 
thereupon  the  secretary  of  state  shall  issue  to  the  corporation, 
over  the  great  seal  of  the  state,  a  certificate  that  a  copy  of  the 
articles  containing  the  required  statement  of  facts  has  been  filed 
in  his  office,  and  thereupon  the  persons  signing  the  articles 
and  their  associatics  and  successors  shall  be  a  body  politic  and 
corporate  by  the  name  stated  in  the  certificate.  When  so  filed, 
the  said  articles  of  incorporation  or  certified  copies  thereof  shall 
be  received  in  all  the  courts  of  this  state,  aud  other  places,  as 
prima  facie  evidence  of  the  facts  contained  therein. 

New  section;  added  April  13,  1900;  stats.  1909,  p.  855;  in 
effect  in  sixty  days. 

By-laws. 

§  653 «;.  Each  corporation  incorporated  under  this  title  must, 
within  one  month  after  filing  articles  of  incorporation,  adopt 
a  code  of  by-laws  for  its  government  and  management  not  incon- 
sistent with  the  provisions  of  this  title.  A  majority  vote  of  the 
members  or  the  written  assent  of  members  representing  a 
majority  of  the  votes  is  necessary  to  adopt  such  by-laws.  The 
provisions  of  sections  303  and  304  of  this  code,  which  are  not 
inconsistent  with  the  provisions  of  this  title,  shall  apply  to  the 
by-laws  of  the  corporation  provided  for  in  this  title.  Each  cor- 
poration organized  hereunder  may  also,  by  its  by-laws  adopted 
as  aforesaid,  provide  for  the  following  matters: 

1.  The  manner  of  removal  of  any  one  or  more  of  its  directors 
and  of  filling  any  aud  all  vacancies  in  the  l)oard  of  directors. 


228  (  i\i!,  cdUK.  §  (i53(r 

2.  The  conditions  upon  \\  hich  and  tlie  time  when  member- 
ship of  any  member  in  the  corporation  shall  cease ;  the  mode, 
manner  and  effect  of  expulsion  of  a  member,  subject  to  the 
right  of  the  expelled  member  to  have  the  board  of  directors 
equitably  appraise  his  property  interests  in  the  corporation  and 
to  fix  the  amount  thereof  in  money,  and  to  have  the  money  paid 
to  him  within  sixty  days  after  such  expulsion. 

3.  The  amount  of  membership  fee,  if  any,  and  the  amount 
which  each  member  shall  be  required  to  pay  annually,  or  from 
time  to  time,  if  at  all,  to  carry  on  the  business  of  the  corpora- 
tion, and  also  the  compensation,  if  any,  to  be  paid  by  each 
member  for  any  services  rendered  by  the  corporation  to  him. 
and  the  time  of  payment  and  the  manner  of  collecting  the  same, 
and  may  provide  for  forfeiture  of  the  interest  of  the  member 
in  the  corporation  for  non-payment  of  the  same. 

4.  The  number  and  qualifications  of  members  of  the  corpo- 
ration and  the  conditions  precedent  to  membership  and  the 
metliod,  time  and  manner  of  permitting  members  to  withdraw, 
and  providing  for  the  assignment  and  transfer  of  the  interest 
of  members,  and  the  manner  of  determining  the  value  of  such 
interest  and  providing  for  the  purchase  of  such  interest  by  the 
corporation  upon  the  death,  withdrawal  or  expulsion  of  a  mem- 
ber or  upon  the  forfeiture  of  his  membership,  at  the  option  of 
the  corporation. 

New  section;  added  April  13,  1900;  stats.  3900,  p.  .S5.^ ;  in 
effect  in  sixty  days. 

Powers  of  corporation. 

§  653./;.  Each  corporation  incorporated  under  this  titlt;  shall 
have  the  powers  granted  by  the  provisions  of  this  code  and 
other  laws  of  California,  relating  to  private  corporations,  which 
are  not  inconsistent  with  those  granted  by  this  title,  and  shall 
also  have  the  following  powers  : 

1.  To  appoint  such  agents  and  officers  as  its  business  may 
require,  and  such  appointed  agents  may  be  either  persons  or 
corporations ;  to  admit  persons  and  corporations  to  membership 
in  the  corporation,  and  to  expel  any  member  pursuant  to  the 
provisions  of  its  by-laws;  to  forfeit  the  membership  of  any  mem- 
Ijer  for  violation  of  any  agreement  between  him  and  the  cor- 
poration or  for  his  violation  of  its  by-laws. 

2.  To  purchase,  lease  or  othenvise  acquire,  hold,  own  and 
enjoy,  to  sell,  lease,  moi-tgage  and  otherwise  encumber  and  dis- 


S  G53./'  CIVIL    CODE.  229 

l)osv>  of  any  and  all  and  every  kind  or  kinds  of  real  and  personal 
in-operty,  also  to  carry  on  any  and  all  oi)eratious  necessary  or 
convenient  in  connection  v.itli  tlie  transaction  of  any  of  its 
business. 

3.  Upon  the  written  assent  of  two  thirds  of  all  the  members 
or  by  a  vote  of  members  representing  two  thirds  of  the  total 
votes  of  all  members  of  each  of  two  or  more  such  non-profit 
cooperative  corporations  to  cooperate  with  each  other  for  the 
more  economical  carrying;  on  of  their  respective  businesses  by 
consolidation  as  provided  in  section  053*  of  this  code,  such  con- 
solidation shall  be  effected,  and  thereupon  the  effect  of  such 
consolidation  shall  be  the  same  as  declared  in  said  section.  Any 
such  corporation  upon  resolution,  adopted  by  its  board  of  direct- 
ors, shall  have  the  power  to  enter  into  contracts  and  agreements, 
and  to  make  stipulations  and  arrangements  with  any  other  cor- 
poration or  corporations  for  the  cooperative  and  more  economical 
carrying  on  of  its  business,  or  any  part  or  parts  thereof ;  or 
any  two  or  more  coiiperative  corporations  organized  under  this 
title,  upon  resolutions  adopted  by  their  respective  boards  of 
directors,  may,  for  the  purpose  of  more  economically  carrying 
on  their  respective  businesses,  by  agreement,  unite  in  adopting, 
employing  and  using,  or  several  such  corporations  may  sepa- 
rately adopt,  employ  and  use  the  same  methods,  policy,  means, 
agents,  agencies  and  terms  of  marketing  for  carrying  on  and 
conducting  their  respective  businesses. 

4.  Any  corporation  formed  or  consolidated  under  this  title 
may  be  dissolved,  and  its  affairs  wound  up  voluntarily  by  the 
written  consent  of  members  representing  two  thirds  of  the  total 
votes,  in  the  manner  and  with  the  effect  provided  in  section 
tir..37  of  this  code,  except  that  any  property  remaining  after 
licjuidation  shall  be  divided  among  the  members  in  proportion  to 
their  respective  property  interests  therein. 

New  section  ;  added  April  13,  1909 ;  stats.  1909,  p.  85G ;  in 
effect  in  sixty  days. 

Amendment  of  articles  of   incorporation. 

§  653;/.  Any  such  corporation  may  amend  its  articles  of  incor- 
lioration  in  any  manner  not  inconsistent  with  the  provisions 
of  this  title,  in  the  manner  provided  for  i)y  section  362  of  the 
<  ;ivil  Code  of  this  state. 

New  section;  added  April  13.  1909;  slals.  IIX)!),  p.  SHT ;  in 
effect  in  sixty  da  vs. 


230  civir.  CODE.  §  053.t 

Quo  warranto. 

§  6530.  The  right  of  a  corporatiou  claiming  to  be  orgauized 
and  incorporated  and  carrying  on  its  business  under  this  title, 
to  do  and  to  continue  its  business,  may  be  inquired  into  by  quo 
warranto  proceeding  at  the  suit  of  the  attorney  general,  but  not 
otherwise. 

New  section:  added  April  13,  1909;  stats.  1909,  p.  857;  in 
effect  in  sixty  days. 

Particular   corporations. 

§  653^'/.  This  title  is  not  applicalile  to  railroads,  telegraph, 
telephone,  banking,  insurance,  building  and  loan,  or  any  other 
corporation,  unless  the  special  provisions  of  this  code  appli- 
cable thereto  are  complied  with. 

New  section;  added  April  13,  1909;  stats.  1909,  p.  857;  in 
effect  in  sixty  days. 

Voting. 

§  653c6.  In  the  event  the  by-laws  shall  provide  for  unequal 
voting  power,  or  unequal  property  rights  of  the  several  mem- 
bers, or  both,  the  provision.s  of  this  title  with  reference  to  a 
majority,  a  two-thirds,  or  other  vote  of  the  members,  shall  not 
apply,  and  in  lieu  thereof,  there  shall  be  substituted  a  majoi'ity, 
or  a  two-thirds  of  the  votes  of  the  interests  represented  by  the 
several  members,  or  otherwise,  as  the  case  may  be. 

New  section;  added  April  13,  1909;  stats.  1909.  p.  H'>~ ;  in 
effect  in  sixty  days. 


S  t>54  CIVIL  CODE.  231 

DIVISION  SECOND. 
PART  L 

PROPERTY  IN  GENERAL. 

TITLE  I. 

Nature  of  Property. 

Sec.  654.     Property,  what. 

655.     In  what  property  may  exist. 

Property,   what. 

§  654.  The  ownership  of  a  thing  is  the  right  of  one  or  more 
persons  to  possess  and  use  it  to  the  exclusion  of  others.  In  this 
code,  the  thing  of  which  there  may  be  ownership  is  called  prop- 
erty. 

Enacted  March  21,  1872. 

109  Cal.  .37;  IIG  Cal.  34;!:  12(i  Cal.  119;  131  Cal.  307; 
1  Cal.  App.  513. 

As  to  the  meaning  of  "property"  for  the  purposes  of  taxation, 
see  Pol.  C.  §  3017. 

Franchises  as  property  :  See  §  388,  antv. 

In  what  property   may  exist. 

§  655.  There  may  be  ownership  of  all  inanimate  things  which 
are  capable  of  appropriation  or  of  manual  delivery ;  of  all 
domestic  animals ;  of  all  obligations  ;  of  such  products  of  labor 
or  skill  as  the  composition  of  an  author,  the  goodwill  of  a  busi- 
ness, trade-marks  and  signs,  and  of  rights  created  or  granted  by 
statute. 

Enacted  March  21,  1872. 

126  Cal.  119  ;  133  Cal.  71  ;  149  Cal.  598  ;  1  Cal.  App.  518. 

For  trade-marks,  etc.,  see,  also.  Civ.  C.  §§991,  1772,  1773; 
Pol.  C.  §3190  to  3201  ;  Pen.  C.  §  349r/  to  3r,i:t',  ;  .ilso,  "Trade- 
nini'ks,"  statuli's  .-it  Inige.   Api)en<li\. 


'_'.'{2  CIVIL   CODE.  §  91)1 


PART  III. 

PERSONAL  OR  MOVABLE  PROPERTY. 


TITLE  II. 

Particular  Kinds  of  Personal  Property. 

CHAPTER   IV. 
OTHER    KINDS    OF    PERSONAL    PROPERTY. 

Sec.  091.     Trade-marks. 

Trade- marks. 

§  991.  One  who  produces  or  deals  in  a  particular  thing,  or 
conducts  a  particular  business,  may  appropriate  to  his  exclusive 
use,  as  a  trade-mark,  any  form,  symbol,  or  name,  which  ha.s 
not  been  so  appropriated  by  another,  to  designate  the  origin 
or  ownership  thereof ;  but  he  can  not  exclusively  appropriate 
any  designation,  or  part  .ef  a  designation,  which  relates  only 
to  the  name,  quality,  or  the  description  of  the  thing  or  business, 
or  the  place  where  the  thing  is  produced,  or  the  business  is  car- 
ried on. 

Amended  March  30,  1874  ;  amendts.  1873-4,  p.  224. 

63  Cal.  446;  100  Cal.  677;  103  Cal.  73;  136  Cal.  352; 
150  Cal.  182. 

As  to  trade-marks,  see,  also,  Civ.  C.  §§  654,  655,  1772,  1773  ; 
Pol.  C.  §§3196-3201;  Pen.  C.  §§349a  to  354%;  see,  also, 
"Trade-marks,"  statutes  at  large.  Appendix. 


§  lltU  CIVIL  CODE.  28;{ 

PART  IV. 

ACQUISITION  OF  PROPERTY. 


TITLE  IV. 

Transfer. 

CHAPTER  IV. 
RECORDING   TRANSFERS. 

Article  I. 
What  May  Be  Recorded. 

Sec.  1161.      Acknowledgment    of    instrument    by    a    person  ;    by    a 
corporation. 
1163.      Residence  recorded  for  tlie  purpose  of  service  of  sum- 
mons.     P'ee.      Index. 

Acknowledgment  of   instrument   by   a    person;    by   a    corporation. 

§  1161.  Before  an  instrument  can  be  recorded,  unless  it 
belongs  to  the  class  provided  for  in  either  section  eleven  hun- 
dred and  fifty-nine,  eleven  hundred  and  sixty,  twelve  hundred 
and  two,  or  twelve  hundred  and  three,  its  execution  must  be 
acknowledged  by  the  person  executing  it,  or  if  executed  by  a 
corporation,  by  its  president  or  secretary,  or  other  person 
executing  the  same  on  behalf  of  the  coi-poration,  or  proved  by 
a  subscribing  witness,  or  as  provided  in  sections  eleven  hundred 
and  ninety-eight  and  eleven  hundred  and  ninety-nine,  and  the 
acknowledgment  or  proof  certified  in  the  manner  prescribed 
by  article  three  of  this  chapter. 

Amended  March  21,  1905  ;  stats.  1905,  p.  602. 

55  Cal.  565 ;  56  Cal.  129 ;  74  Cal.  429 ;  90  Cal.  477. 

Note. — §  1161.  Tlie  change  consi.sts  in  the  addition  of  the 
words  "or  otlier  person  executing  tlie  .same  on  belialf  of  the  cor- 
poration," following  "its  president  or  secretary."  The  reason  for 
the  amendment  is  that  an  instrument  may  be  executed  on  behalf 
of  a  corporation  by  an  ofRcei'  or  per.son  other  than  its  president 


-:^>l  CIVIL  COUE.  S1161 

or  secretary,  when  authorized  by  its  board  of  directors.  The 
section  as  It  lieretofore  stood  appeared  to  sanction  its  execution 
by  those  officers  only. 

Residence  recorded  for  the  purpose  of  service  of  summons — Fee — 
Index. 

S  1163.  Any  iierson,  firm,  or  corporatiou,  may  record  in  the 
office  of  the  county  recorder  of  any  county  in  the  State  of  Cali- 
fornia a  certificate  setting  forth  the  name  of  said  person,  firm, 
or  corporation,  and  the  place  of  residence  of  said  person,  firm, 
or  corporation,  and  the  place  where  service  of  summons  may  bo 
made  upon  said  per.son,  firm,  or  corporatiou.  The  said  certifi- 
cate must  bo  verified  by  the  oath  of  the  person,  or  of  a  member 
of  the  firm,  or  officer  of  the  corporation  making  the  same,  and 
nioy  be  recorded  without  acknowledgment.  Such  person,  firm  or 
corporatiou  may  upon  a  change  of  place  of  resideuce  file  affidavit 
as  heroin  provided  and  such  last  affidavit  filed  shall  be  the  place 
designated  as  the  place  where  service  of  summons  may  be  made 
as  herein  provided.  The  foe  of  the  recorder  for  recording  said 
c-ertificate  shall  be  fifty  cents ;  and  the  recorder  shall  keep  in  his 
office  an  index  entitled  "Index  to  certificates  of  residence,"  in 
which  must  be  entered  the  name  of  the  person,  firm,  or  corpora- 
tion in  whose  behalf  said  certificate  was  filed. 

Enacted  March  IS.  1905 ;  stats.  190.5,  p.  139. 

Foreign  corporation  to  designate  person  upon  whom  summons 
may  be  served:   See  Civ.  C.  §§405,  406. 

Foreign  insurance  corporation  :   See  Pol.  C.  §  616. 


Article  III. 
Proof    and    Acknowledgment   of    Instruments. 

Sec.  1185.     Requisites    for    acknowledgment    or    proof    of    instru- 
ment. 
1190.     Form  of  acknovi'Iedgment  by  corporation. 

Requisites  for  acknowledgment  or  proof  of  instrument. 

§  1185.  The  acknowledgment  of  an  iustitiment  must  not  be 
taken,  unless  the  officer  taking  it  knows  or  has  satisfactory  evi- 
dence, on  the  oath  or  affirmation  of  a  credible  witness,  that  the 
iK'rson  making  such  acknowledgment  is  the  individual  who  is 
described  in  and   who  executed  the  instrument;   or.   if  executed 


§  1185  CIVIL  CODE.  235 

bj'  a  corporation,  that  the  person  makiug  such  acknowledgment 
is  the  president  or  secretary  of  such  corporation,  or  other  i)erson 
who  executed  it  on  its  behalf. 

Amended  March  21,  1905;  stats.  1905,  p.  (M). 

55  Cal.  565;  96  Cal.  651;  97  Cal.  212;   lt»l   Cal.  539; 

131  Cal.  507 ;  YII  Cal.  App.  Dec.  418. 
XOTE. — §  1185.     The    change    consists    in    the    addition    of    the 
words  "or  other  person  wlio  executed  it  on  its  behalf,"   following 
"president  or  secretary  of  such   corporation."      (See  note  to   sec- 
tion 1161.) 

Form    of   acknowledgment    by    corporation. 

§  1190.  The  certificate  of  acknowledgment  of  an  instrumeut 
executed  by  a  corporation  must  be  substantially  in  the  followiui; 
form  : 


•'State  of 


County  of 


"On  this da,y  of  ■ ,  in  the  year ,  before  me 

(here  insert   the   name   and  quality   of   the   officer),   personally 

appeared  — ,  known  to  me    (or  proved  to  me  on  the  oath 

of )  to  be  the  president  (or  the  secretary)  of  the  cor- 
poration that  executed  the  within  instrument  (where,  however, 
the  instrument  is  executed  in  behalf  of  the  corporation  by  some 
one  other  than  the  president  or  secretary,  insert :  known  to  me 

[or  proved  to  me  on  the  oath  of ]   to  be  the  person  who 

(>xecuted  the  within  instrumeut  on  behalf  of  the  corporation 
therein  named)  and  acknowledged  to  me  that  such  corporation 
executed  the  same."' 

Amended  March  21,  1905 ;  stats.  1905,  i*.  603. 
55  Cal.  565 ;  101  Cal.  539. 

Note. — §  1190.  The  change  consists  in  the  addition  of  the 
proviso  "the  person  who  executed  the  within  instrument  on 
behalf  of  the  corporation  therein  named,"  following  the  word.'^ 
"the  president  (or  the  secretary)  of  the  corporation  that  executed 
tlie  within  instrument."      (See  note  to  section  1161.) 


236  CIVIL  CODE,  §  1275 

TITLE  VI. 

Wills. 

01 1  APT  En   1. 
EXECUTION    AND    REVOCATION    OF    WILLS. 

Sec.  1127.5.     AVho  may  take  by  will. 

1313.      Re.striclion  on  devise  for  rliaritable  pnrpose.s. 

Who   may  take   by   will. 

S  1275.  A  tostamontaiy  disposition  ma.\'  be  made  to  nuy  per- 
son capable  by  law  of  taking  the  property  so  disposed  of,  except 
that  corporations  other  than  counties,  mnuicipal  corporations,  and 
corporations  formed  for  .scientific,  literary,  or  solely  educational 
or  hospital  purposes,  can  not  take  imder  a  will,  unless  expressly 
authorized  by  statute  ;  subject,  however,  to  the  provisions  of  sec- 
tion thirteen  hundred  and  thirteen. 

Amended  March  21,  100.5;  stats.  190.3.  p.  GO.j. 

5!)  Cal.  131 ;  (iO  Cal.  309 ;  63  Cal.  621 ;  123  Cal.  624. 

Note. — §  127  5.  The  change  consists  in  the  insertion  of  the 
word  "that"  before  "corporations,"  and  in  the  insertion  of  the 
words  "counties,  municipal  corporations  and  corporations"  after 
"than."  The  amendement  in  substance  incorporates  into  the  sec- 
tion the  provisions  of  the  act  of  1S81,  page  2,  authorizing  the 
.several  counties,  cities  and  counties,  cities  and  towns  of  the  state, 
to  receive  property  by  gift,   bequest  and  devise. 

Restriction    on    devise   for   charitable    purposes. 

S  1313.  No  estate,  real  or  personal,  shall  be  bequeathed  or 
devised  to  any  charitable  or  benevolent  society,  or  corporation,  or 
to  any  person  or  persons  in  trust  for  charitable  uses,  except  the 
same  be  done  by  will  duly  executed  at  least  thirty  days  before 
the  decease  of  the  testator ;  and  if  so  made,  at  least  thirty  day.s 
prior  to  such  death,  such  devise  or  legacy,  and  each  of  them,  shall 
be  valid ;  providfd,  that  no  such  devises  or  bequests  shall  collect- 
ively exceed  one  third  of  the  estate  of  the  testator  leaving  legal 
heirs,  and  in  such  case  u  pro  rata  deduction  from  such  devises  or 
bequests  shall  be  made  so  as  to  reduce  the  aggregate  thereof  to 
one  third  of  such  estate;  and  all  dispositions  of  property  made 


§  1313  civir.  CODE.  237 

contrary  hereto  shall  be  void,  and  go  to  the  residuary  legatee  or 

devisee,  next  of  kin,  or  heirs,  according  to  law. 
Enacted  March  18,  1874 ;  amendts.  1873-4.  p.  275. 

58  Cal.  470;  63  Cal.  022;  94  Cal.  378;  98  Cal.  G06 ;  105 
Cal.  647 :  123  Cal.  624 ;  126  Cal.  301 ;  127  Cal.  96 ;  128 
Cal.  12  ;  138  Cal.  434  ;  150  Cal.  605  ;  152  Cal.  328,  .329. 
.'t:lO:  XXXVI  Cal.  Dec.  151. 


TITLE  X. 

[Title  X  added  March  13,   inOO  :  stat.s.   100;),  p.   313.] 

Location  of  Mining'  Claims,  Tunnel  Rights,  and  Mill 
Sites. 

(For  incorporation  ol"  mining  companies,  see  Civ.  C.  §586 
et  scq.;  see,  also,  "Mines  and  Mining,"  statutes  at  large,  Ap- 
])endix.) 

Sec.  1426.     Lode  claims,  how  located. 
1426«.   Boundaries. 

1126b.   Record  of  location,  lode  claim. 
1126c.   Placer  claim,  location  of. 
i426ri.   Record  of  location,  placer  claim. 
1426e.  Tunnel  right,  location  of. 
1426A".    Boundaries  of  tunnel  location. 
1426(/.   Record  of  location,  tunnel  claim. 
1426/1.  Amended  notice  of  mining  claim. 
1426J.    Surveyed  claims. 
1426J.    Mill  site,  location  of. 
1426?i".   Record  of  location,  mill  site. 
1426/.     Yearly  work  required,   miiiius  claim. 
1426»!.  Record  of  work. 
142 6h.  Recorder's  fee. 

14260.   Delinquent    co-owners,    notice    to;    payment    by    delin- 
quents. 
14  26?>.   Records  to  be  received  in  evidence. 
1426q.   Copies  of  records  as  evidence. 
1426?-.   Effect  on  mining  districts. 
14  26.S.   Neglect  to  perform  de\elopmcnt  work. 

Lode  claims,  how  located. 

§  1426.  Any  person,  a  citizen  of  the  United  States,  or  who  has 
declared   his   intention   to   become   such,   who   discovers   a   vein 


238  CIVIL  CODE.  §  1426 

or  lode  of  quartz,  or  other  rock  in  place,  bearing  gold,  silver, 
cinnabar,  lead,  tin,  copper,  or  other  valuable  deposit,  may  locate 
a  claim  upon  such  vein  or  lode,  by  defining  the  boundaries  of 
the  claim,  in  the  manner  hereinafter  described,  and  by  posting 
a  notice  of  such  location,  at  the  point  of  discovery,  which  notice 
must  contain  :  First — The  name  of  the  lode  or  claim.  Second — 
The  name  of  the  locator  or  locators.  Third — The  number  of 
linear  feet  claimed  in  length  along  the  course  of  the  vein, 
each  way  from  the  point  of.  discovery,  with  the  width  on  each 
side  of  the  center  of  the  claim,  and  the  general  course  of  the 
vein  or  lode,  as  near  as  may  be.  Fourth — The  date  of  location. 
Fifth — Such  a  description  of  the  claim  by  reference  to  some 
natural  object,  or  permanent  monument,  as  will  identify  the 
claim  located. 

New  section;  add^d  March  13,  1900:  stats.  1909,  p.  313;  in 
effect  July  1,  1909. 

Boundaries. 

§  1426«.  The  locator  must  define  the  boundaries  of  his  claim 
so  that  they  may  be  readily  traced,  and  in  no  case  shall  the 
claim  extend  more  than  fifteen  hundred  feet  along  the  course 
of  the  vein  or  lode,  nor  more  than  thi-ee  hundred  feet  on  either 
side  thereof,  measured  from  the  center  line  of  the  vein  at  the 
surface. 

New  section;  added  :\rarch  13.  1909;  stats.  1909,  p.  314;  in 
effect  July  1,  1909. 

Record  of  location,  lode  claim. 

§  14266.  Within  thirty  days  after  the  posting  of  his  notice  of 
location  upon  a  lode  mining  claim,  the  locator  shall  record  a 
true  copy  thereof  in  the  oflice  of  the  county  recorder  of  the 
county  in  which  such  claim  is  situated,  for  which  service  the 
county  recorder  shall  receive  a  fee  of  one  dollar. 

New  section  ;  added  March  13,  1909 ;  stats.  1909,  p.  314  ;  in 
effect  July  1,  1909. 

Placer  claim,  location  of. 

§  1426c.  The  location  of  a  placer  claim  shall  be  made  in  the 
following  manner :  By  posting  thereon,  upon  a  tree,  rock  in 
place,  stone,  post  or  monument,  a  notice  of  location,  containing 
the  name  of  the  claim,  name  of  locator  or  locators,  date  of  loca- 
tion, number  of  feet  or  acreage  claimed,  such  a  description  of 
the   claim   by    reference   to   some   natural   object   or   permanent 


§  ll-JC)'-  CIVIL  coi)L\  2;{0 

monument  as  will  identify  the  claim  located,  and  by  marking- 
the  boundaries  so  that  they  may  be  readiiy  traced ;  provided, 
tliat  where  th^  United  States  survey  has  been  extended  over 
the  land  embraced  in  the  location,  the  claim  may  be  taken  by 
legal  subdivisions  and  no  other  reference  than  those  of  said 
survey  shall  be  required  and  the  boundaries  of  a  claim  so 
located  and  described  need  not  be  staked  or  monumented.  The 
description  by  legal  subdivisions  shall  he  deemed  the  equivalent 
of  marking. 

New  section;  added  March  13,  ll>Or»:  stats.  1909.  p.  311;  in 
effect  July  1,  1909. 

Record  of  location,  placer  claim. 

§  1426d.  Within  thirty  days  after  the  posting  of  the  notice  of 
location  of  a  placer  claim,  the  locator  shall  record  a  true  copy 
thereof  in  the  office  of  the  county  recorder  of  the  county  in 
which  such  claim  is  situated,  for  which  service  the  recorder 
shall  receive  a  fee  of  one  dollar. 

New  section;  added  March  13,  1909;  stats.  1909,  p.  314;  in 
effect  July  1,  1909. 

Tunnel   right,    location   of. 

§  1426e.  The  locator  of  a  tunnel  right  or  location,  shall  locate 
his  tunnel  right  or  location  by  posting  a  notice  of  location  at 
the  face  or  point  of  commencement  of  the  tunnel,  which  must 
contain : 

First — The  name  of  the  locator  or  locators. 

Second — The  date  of  the  location. 

Third — The  proposed  course  or  direction  of  the  tunnel. 

Fourth — A  description  of  the  tunnel,  with  reference  to  some 
natural  object  or  permanent  monument  as  shall  identify  the 
claim  or  tunnel  right. 

New  section;  added  March  13,  1909;  stats.  1909,  p.  314;  in 
effect  July  1,  1909. 

Boundaries  of  tunnel  location. 

§  1426/.  The  boundary  lines  of  the  tunnel  shall  be  established 
by  slakes  or  monuments  placed  along  the  lines  at  an  interval 
of  not  more  than  six  hundred  feet  from  the  face  or  point  of 
commencement  of  the  tunnel  to  the  terminus  of  three  thousand 
feet  therefrom. 

New. section;  added  lAlarcli  13,  1909;  slats.  1909,  p.  314:  in 
effect  July  1,  1909. 


240  CIVIL  CODE.  §  142Gy 

Record   of  location,   tunnel   claim. 

§  1426f/.  Within  tliirty  days  after  tlie  posting  the  notice  of 
location  of  the  tunnel  right  or  location,  the  locator  shall  record 
a  true  copy  thereof,  in  the  office  of  the  county  recorder  of  the 
county  in  which  such  claim  is  situated,  for  which  service  the 
recorder  shall  receive  a  fee  of  one  dollar. 

New  section;  added  March  13,  1909:  stats.  1909,  p.  314;  in 
effect  July  1,  1909. 

Amended    notice   of    miniiig    claim. 

§  1426/i.  If  at  any  time  the  locator  of  any  mining  claim  here- 
tofore or  hereafter  located,  or  his  assigns,  shall  apprehend  that 
his  original  location  notice  was  defective,  erroneous,  or  that  the 
requirements  of  the  law  had  not  been  complied  with  before  fil- 
ing ;  or  in  case  the  original  notice  was  made  prior  to  the  passage 
of  this  act,  and  he  shall  be  desirous  of  securing  the  benefit  of 
this  act,  such  locator,  or  his  assigns,  may  file  an  additional 
notice,  subject  to  the  provisions  of  this  act ;  proinded,  that  such 
amended  location  notice  does  not  interfere  with  the  existing 
rights  of  others  at  the  time  of  posting  and  filing  such  amended 
location  notice,  and  no  such  amended  location  notice  or  the 
record  thereof,  shall  preclude  the  claimant,  or  claimants  from 
proving  any  such  title  as  he  or  they  may  have  held  under 
previous  locations. 

New  section;  added  March  13,  1909;  stats.  1909.  p.  315;  in 
effect  July  1,  1909. 

Surveyed  claims. 

§  1426i.  Where  a  locator,  or  his  assigns,  has  the  boundaries 
and  corners  of  his  claim  established  by  a  United  States  deputy 
mineral  sui-vey,  or  a  licensed  surveyor  of  this  state,  and  his 
claim  connected  with  the  corner  of  the  public  or  minor  surveys 
of  an  established  initial  point,  and  incorporates  into  the  record 
of  the  claim,  the  field  notes  of  such  survey,  and  attaches  to  and 
files  with  such  location  notice,  a  certificate  of  the  surveyor, 
setting  forth ;  First,  that  said  survey  was  actually  made  by 
him,  giving  the  date  thereof;  Second,  the  name  of  the  claim 
surveyed  and  the  location  thereof;  Third,  that  the  description 
incorporated  in  the  declaratory  statement  is  sufiicient  to  iden- 
tify ;  such  survey  and  certificate  becomes  a  part  of  the  record, 
and  such  record  is  prima  facie  evidence  of  the  facts  therein 
contained. 

New  section;  added  .March  13,  1909;  stats.  1909,  p.  315;  in 
effect  July  1,   1909. 


§  1426i  CIVIL  CODE.  241 

Mill  site,  location  of. 

§  1426;.  The  proprietor  of  a  vein  or  lode  claim  or  mine,  or 
the  owner  of  a  quartz  mill  or  reduction  works,  or  any  person 
qualified  by  the  laws  of  the  United  States,  may  locate  not  more 
than  five  acres  of  non-mineral  land  as  a  mill  site.  Such  loca- 
tion shall  be  made  in  the  same  manner  as  hereinbefore  required 
for  locating  placer  claims. 

New  section  ;  added  March  13,  1909 ;  stats.  1909,  p.  31.5  ;  in 
effect  July  1,   1909. 

Record  of  location,   mill  site. 

§  ■1426A-.  The  locator  of  a  mill  site  claim  or  location  shall, 
within  thirty  days  from  the  date  of  his  location,  record  a  true 
copy  of  his  location  notice  with  the  county  recorder  of  *the 
county  in  which  such  location  is  situated,  for  which  service  the 
recorder  shall  receive  a  fee  of  one  dollar. 

New  section  ;  added  March  13,  1909 ;  stats.  1909.  p.  315  ;  in 
effect  July  1,  1909. 

Yearly  work  required,  mining  claim. 

§  1426L  The  amount  of  work  done  or  improvements  made 
during  each  year  to  hold  possession  of  a  mining  claim  shall  be 
that  prescribed  by  the  laws  of  the  United  States,  to  wit :  One 
hundred  dollars  annually. 

New  section  ;  added  March  13,  1909  ;  stats.  1909,  p.  315  ;  in 
effect  July  1,   1909. 

Record  of  work. 

§  1426wj.  Whenever  mine  owner,  company,  or  corporation 
shall  have  performed  the  labor  and  made  the  improvements 
required  by  law  upon  any  mining  claim,  the  person  in  whose 
behalf  such  labor  was  performed  or  improvements  made,  or 
some  one  in  his  behalf,  shall  within  thirty  days  after  the  time 
limited  for  performing  such  labor  or  making  such  improve- 
ments make  and  have  recorded  by  the  county  recorder,  in  books 
kept  for  that  purpose,  in  the  county  in  which  such  mining  claim 
is  situated,  an  aflidavit  setting  forth  the  value  of  labor  or 
improvements  made,  the  name  of  the  claim,  and  the  name  of 
the  owner  or  claimant  of  said  claim  at  whose  expense  the  same 
was  made  or  performed.  Such  affidavit,  or  a  copy  thereof, 
duly    certified    by    the    county    recorder,    shall    be    prima    facie 

11— CL. 


242  ri\n,  code.  §142(jjrt 

evidence   of   the   performance   of   such   labor   or   the   making   of 
such  improvements,  or  both. 

New  section;  added  March  13,  3909;  stats.  1909.  p.  315;  in 
effect  July  1,   1909. 

Recorder's  fee. 

§  1426h.  For  reoordins;;  the  affidavit  herein  required,  the 
county  recorder  shall  receive  a  fee  of  fifty  cents. 

New  section;  added  March  13,  1909;  stats.  1909.  p.  31G ;  in 
effect  July  1,   1909. 

Delinquent  co-owners,  notice  to;  payment  by  delinquents. 

§.1426o.  Whenever  a  coowuer  or  coinvners  of  a  mining  claim 
shall  give  to  a  delinquent  coowuer  or  coowners  the  notice  in 
writing  or  notice  by  publication  provided  for  in  section  2324, 
Revised  Statutes  of  the  United  States,  an  affidavit  of. the  per- 
son giving  sucli  notice,  stating  the  time,  place,  manner  of  service, 
and  by  whom  and  upon  whom  such  service  was  made,  shall 
be  attached  to  a  true  copy  of  such  notice,  and  such  notice 
and  affidavit  must  be  recorded  in  the  office  of  the  county 
recorder,  in  books  kept  for  that  purpose,  in  the  county  in  which 
the  claim  is  situated,  within  ninety  days,  after  the  giving  of 
such  notice ;  for  the  recording  of  which  said  recorder  shall  receive 
the  same  fees  as  are  now  allowed  by  law  for  recording  deeds ; 
or  if  such  notice  is  given  by  publication  in  a  newspaper,  there 
shall  be  attached  to  a  printed  copy  of  such  notice  an  affidavit 
of  the  printer  or  liis  foreman,  or  principal  clerk  of  such  paper, 
stating  the  date  of  the  first,  last  and  each  insertion  of  such 
notice  therein,  and  where  the  newspaper  was  published  dur- 
ing that  time,  and  the  name  of  such  newspaper.  Such  affidavit 
and  notice  shall  be  recorded  as  aforesaid,  within  one  hundred 
and  eighty  days  after  the  first  publication  thereof.  The 
original  of  such  notice  and  affidavit,  or  a  duly  certified  copy  of 
the  record  thereof,  shall  be  prima  facie  evidence  that  the 
delinquent  mentioned  in  section  2324  has  failed  or  refused  to 
contribute  his  proportion  of  the  expenditure  required  by  that 
section,  and  of  the  service  of  publication  of  said  notice ;  pro- 
vided, the  writing  or  affidavit  hereinafter  provided  for  is  not 
of  record.  If  such  delinquent  shall,  within  the  ninety  days 
required  by  section  2324,  aforesaid.  conlril)utc  to  his  coowner 
or  C(jiiwn('rs,   his  ])i-(ii)()rlion   of  sucli   I'xpcnditnrey.   and   also  all 


§  142r>0  CIVIT.   CODE.  24.'> 

costs  of  service  of  the  notice  requii-ed  l).v  this  section,  whether 
incurred  for  publication  charges,  or  otherwise,  such  coowner 
or  coowners  shall  sign  and  deliver  to  the  delinquent  or  delin- 
quents a  writing,  stating  that  the  delinquent  or  delinquents  by 
name  has  within  the  time  required  by  section  2324  aforesaid. 

contributed  his  share  for  the  year ,  upon  the mine, 

and  further  stating  therein  the  district,  county  and  state  wherein 
the  same  are  situated,  and  the  book  and  page  where  the  location 
notice  is  recorded,  if  said  mine  was  located  under  the  pro- 
visions of  this  act ;  such  writing  shall  Ije  recorded  in  the  office 
of  the  county  recorder  of  said  county,  for  which  he  shall  receive 
the  same  fees  as  are  now  allowed  by  law  for  recording  deeds. 
If  such  coihvner  or  coowners  shall  fail  to  sign  and  deliver  such 
writing  to  the  delinquent  or  delinquents  within  twenty  days 
after  such  contribution,  the  coiiwuer  or  coowners  so  failing  as 
aforesaid  shall  l)e  liable  to  the  penalty  of  one  hundred  dollars  to 
be  recovered  by  any  person  for  the  use  of  tlie  delinquent  or 
delinquents  in  any.  court  of  competent  jurisdiction.  If  such 
coowner  or  coowners  fail  to  deliver  such  writing  within  said 
twenty  days,  the  delinquent,  with  two  disinterested  persons  hav- 
ing personal  knowledge  of  such  contribution,  may  make  affidavit 
setting  forth  in  what  manner,  the  amount  of.  to  whom,  and  upon 
what  mine,  such  contribution  was  made.  Such  affidavit,  or  a 
record  thereof,  in  the  office  of  the  county  recorder,  of  the  comity 
in  which  such  mine  is  situated,  shall  be  prima  facie  evidence  of 
such  contribution. 

New  section;  added  March  13,  1909;  stats.  1909,  p.  31  <i;  in 
effect  July  1,  1909. 

Records  to  be  received  in  evidence. 

§  1426p.  The  record  of  any  location  of  a  mining  claim,  mill 
site  or  tunnel  right,  in  the  office  of  the  county  recorder,  as 
herein  provided  shall  be  received  in  evidence,  and  have  the 
same  force  and  effect  in  the  courts  of  the  state  as  the  original 
notice. 

New  section  ;  added  March  13.  1909  ;  stats.  1909r  p.  317  ;  in 
effect  July  1,  1909. 

Copies  of  records  as  evidence. 

§  1426(7.  Copies  of  the  records  of  all  instruments  required  to 
be  I'ecorded  by  the  provisions  of  this  act,  duly  certified  by  the 
recorder,   in  whose   custody   sucli    recoi'ds   are.   may   be   read   in 


244  CIVIL  CODE.  §  1426g 

evideuce,  under  the  same  circuiustauces  aud  rules  as  are  now, 
or  may  be  hereafter  provided  by  law,  for  using  copies  of  instru- 
ments relating  to  real  estate,  duly  executed  or  acknowledged  oi- 
proved  and  recorded. 

New  section;  added  March  13,  1909;  stats.  1009,  p.  317;  in 
effect  July  1,  1909. 

Effect  on  mining  districts. 

§  1426r.  The  provisions  of  this  act  shall  not  in  any  manner 
be  construed  as  affecting  or  abolishing  any  mining  district  or 
the  rules  and  regulations  thereof  within  the  State  of  California. 

New  section;  added  March  13,  1909;  stats.  1909,  p.  317;  in 
effect  July  1,  1909. 

Neglect  to  perform  development  work. 

§  1426s.  The  failure  or  neglect  of  any  locator  of  a  mining 
claim  to  perform  development  work  of  the  character,  in  the 
manner  and  within  the  time  required  by  the  laws  of  the  United 
States,  shall  disqualify  such  locators  from  relocating  the  ground 
embraced  in  the  original  location  or  mining  claim  or  any  part 
thereof  under  the  mining  laws,  within  three  years  after  the 
date  of  his  original  location  and  any  attempted  relocation 
thereof  by  any  of  the  original  locators  shall  render  such  location 
void. 

New  section;  added  March  13,  1909;  stats.  1909,  p.  317;  in 
effect  July  1,  1909. 


§  1772  CTVir,  conR.  245 


DIVISION  THIRD. 


PART  IV. 

OBLIGATIONS  ARISING  FROM  PARTICULAR 
TRANSACTIONS. 


TITLE  I. 

Sale. 

CHAPTER  II. 
RIGHTS    AND    OBLIGATIONS    OF    THE    SELLER. 

Aeticle  III. 
Warranty. 
Sec.  17  72.     Trade-marks. 
1773.     Other  marks. 

Trade-marks. 

§  1772.  Ono  who  sells  or  agrees  to  sell  auy  article  to  which 
there  is  affixed  or  attached  a  trade-mark,  thereby  warrants  that 
mark  to  be  genuine  and  lawfully  used. 

Enacted  March  21,  1872. 

Selling  goods  with  counterfeit  trademark:  See  Pen.  C,  §  351. 

Other  marks. 

§  1773.  One  who  sells  or  agrees  to  sell  any  article  to  which 
there  is  affixed  or  attached  a  statement  or  mark  to  express  the 
quantity  or  quality  thereof,  or  the  place  where  it  was,  in  whole 
or  in  part,  produced,  manufactured,  or  prepared,  thereby  war- 
rants the  truth  thereof. 

Enacted  March  21,  1872. 

Owner  of  trade-mark  :  Pol.  C.  §  3199. 

As  to  trade-marks  generally,  see  Civ.  C.  §§  G54,  055.  091: 
Pol.  C.  §§3190  to  3201 ;  Pen.  C.  §§  349a  to  354%  ;  also  "Trade- 
marks," statutes  at  large.  Appendix. 


•_'K;  crviL  CODE.  §  1858 

TITLE  III. 
Deposit. 

CHAPTER  ir. 
DEPOSIT  FOR   KEEPING. 

Chapter  [Article]   llhi. 

[Article  m«  ndded  March  21,   l!iOr,  ;  sUils.   Ifior,.  ,..   t^l:j.| 

Warehousemen. 

(See,  also,  "Warehousemen,"'  statutes  at  large,  Apiieudix. ) 

Sec.  1858.     Warehouse  receipts,  when  must  not  be  issued. 

1858a.   Property  not  to  be  removed  without  consent  in  v.a-it- 

ing. 
lS5Sf>.  Warehouse  receipts,  classification  and  effect  of. 
1858c.   Endorsement  on   negotiable  receipt  of  property  deliv- 
ered. 
1858d.  Negotiable  receipts  and  their  effect. 
1858e.  Liability  for  loss  by  fire. 
1858/".    Penalties  and  liabilities. 

Warehouse  receipts,  when   must   not   be   issued. 

§  1858.  A  wai'ebouseman,  wharfinger,  or  other  person  doin.:; 
a  storage  business  must  not  issue  any  i-eceipt  or  voucher  for  auy 
nierehaudise,  grain,  or  other  product  or  thing  of  value,  to  any 
person  purporting  to  be  the  owner  thereof,  nor  to  auy  person 
as  security  for  auy  indebtedness  or  for  the  performance  of  any 
obligation,  unless  such  merchandise,  grain,  or  other  product, 
commodity,  or  thing  has  been,  in  -good  faith,  received  by  such 
warehouseman,  wharfinger,  or  other  person,  and  is  in  his  store 
or  under  his  control  at  the  time  of  issuing  his  receipt ;  nor 
must  any  second  receipt  for  any  such  property  be  issued  while  a 
former  receipt  for  any  part  thereof  is  outstanding  and  uncan- 
celed. 

Enacted  March  21,  1905;  stats.  190').  p.  G12. 

Note.— §§  1858,  1858«,  185Sb,  1858c,  1858f7,  1858e,  ISGSA  Tlie 
statute  of  1877-8,  page  949,  relating  to  warehousemen's  and 
wharfinger's  receipts,  is  codified  in  tlie  above  sections. 

Property  not  to  be  removed  without  consent  in  writing. 

§  1858a.  No  warehouseman,  wharfinger,  or  other  person  must 
sell   or   incumber,   ship,   transfer,   or   remove   beyond   his  imme- 


§  1S58'(  CIVIL  couE.  247 

diate  coutrol  auy  property  for  which  a  receipt  has  been  given, 
without  the  consent  in  writing  of  the  person  holding  such  receipt 
plainly  indorsed  thereon  in  ink. 

Enacted  March  21,  1905;  stats.  1905,  p.  612. 

Note.- — See  note  to  §  1858,  ante. 

Warehouse   receipts,   classification   and   effect   of. 

§  1858f/.  Warehouse  receipts  for  property  stored  are  of  two 
classes  :  first,  transferable  or  negotiable  ;  and  second,  non-trans- 
ferable or  non-negotiable.  Under  the  first  of  these  classes  the 
property  is  transferable  by  indorsement  of  the  party  to  whose 
order  such  receipt  was  issued,  and  such  indorsement  is  a  valid 
transfer  of  the  property  represented  by  the  receipt,  and  may 
bo  in  blank  or  to,  the  order  of  another.  All  warehouse  receipts 
must  distinctly  state  on  their  face  for  what  they  are  issued  and 
its  brands  and  distinguishing  marks  and  the  rate  of  storage 
per  month  or  season,  and,  in  the  case  of  grain,  the  kind,  the 
number  of  sacks,  and  pounds.  If  a  receipt  is  not  negotiable, 
it  must  have  printed  across  its  face,  in  red  ink,  in  bold,  distinct 
letters,  the  word  "non-negotiable." 

Enacted  March  21,  1905;  stats.  1905.  p.  012. 

Note. — See  note  to  §  185  8,  ante. 

Endorsement   on    negotiable   receipt   of    property    delivered. 

§  1858c.  If  a  negotiable  receipt  is  issued  for  any  property, 
neither  the  person  issuing  it  nor  any  other  person  into  whose 
care  or  control  the  property  comes  must  deliver  any  part  thereof 
without  indorsing  on  the  back  of  the  receipt,  in  ink,  the  amount 
and  date  of  the  delivery;  nor  can  he  be  allowed  to  make  any 
offset,  claim,  or  demand  other  than  is  expressed  on  the  face  of 
the  receipt,  when  called  upon  to  deliver  any  property  for  which 
it  was  issued. 

Enacted  March  21.  1905 ;  stats.  1905,  p.  012. 

Note. — See  note  to  §  1858.  ante. 

Negotiable  receipts  and  their  effect. 

§  ^858d.  If  a  non-negotiable  receipt  is  issued  for  auy  prop- 
erty, neither  the  person  issuing  nor  any  other  person  in  whose 
care  or  control  the  property  comes  must  deliver  any  part  thereof, 
except  upon  the  written  order  of  the  person  to  whom  the  receipt 
was  issued. 

Enacted  March  21.  1905;  slats.  19(i5.  p.  (;12. 

Note. — Sec  note  to  S  18.j8,  ante. 


248  CIVIL  CODE.  §  1858e 

Liability  for   loss   by  fire. 

§  1858c.  No  warehouseman  or  other  person  doing  a  general 
storage  business  is  responsible  for  any  loss  or  damage  to  prop- 
erty by  fire  while  in  his  custody,  if  he  exercises  reasonable 
care  and  diligence  for  its  protection  and  preservation. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  613. 

Note. — See  note  to  S  185  8,  ante. 

Penalties  and  liabilities. 

§  1858/.  Every  warehouseman,  wharfinger,  or  other  person 
who  violates  any  of  the  provisions  of  sections  eighteen  hundred 
and  fifty-eight  to  eighteen  hundred  and  fifty  eight  e,  inclusive, 
is  guilty  of  a  felony,  and,  upon  conviction  thereof,  may  be 
fined  in  a  sum  not  exceeding  five  thousand  dollars,  or  impris- 
oned in  the  state  prison  not  exceeding  five  years,  or  both.  He 
is  also  liable  to  any  person  aggrieved  by  such  violation  for  all 
damages,  immediate  or  consequent,  which  he  may  have  sus- 
tained therefrom,  which  damages  may  be  recovered  by  a  civil 
action  in  any  court  of  competent  jurisdiction,  whether  the 
offender  has  been  convicted  or  not. 

Enacted  March  21,  1905 ;  stats.  1905,  p.  613. 

Note. — ^See  note  to  §  1858,  ante. 


TITLE  VII. 

Carriage. 

nilAI'TRU   V. 
COMMON    CARRIERS. 

Akt.   1.  Common  carriers  in  general.     §§  2168-2177. 

II.  Common  carriers  of  persons.     §§  2180-2191. 

III.  Common  carriers  of  property.      §§  2194-2204. 

IV.  Common  carriers  of  messages.      §§  2207-2209. 

Article  I. 

Common   Carriers   in   General. 

(For  organization  and  government  of  corporation.s  whic-h  arc 
lummon  carriers,  .'^ec  Civ.  C.  §454  ct  seq. ;  "Railroads."  "Street 
Railroads,"  and  "Emigration, '"  statutes  at  large.  Appendix;  see, 
also.  Constitution  of  California,  art.  XII,  §§  17  to  22.) 


§  2168  CIVIL  CODE.  249 

Sec.  2168.  Common  carrier,  what. 

^2169.  Obligation  to  accept  freiglit. 

2170.  Obligation  not  to  give  pi-eference. 

2171.  What  preferences  he  must  give. 

2172.  Starting. 

2173.  Compensation. 

2174.  Obligations  of  carrier  altered  only  by  agreement. 

2175.  Certain  agreements  void. 

2176.  Effect  of  written  contract. 

2177.  I.,oss  of  valuable  letters. 

Common   carrier,   what. 

§  2168.  Every  one  who  offers  lo  the  public  to  carry  per.sons, 
liroperty,  or  messages,  excepting  only  telegraphic  messages,  is  a 
common  carrier  of  whatever  he  thus  offers  to  carry. 

Amended  March  30,  1874 ;  amendts.  1878-4,  p.  249. 
66  Cal.  581,  586. 

Obligation  to  accept  freight. 

§  2169.  A  common  carrier  must,  if  able  to  do  so,  accept  and 
carry  whatever  is  offered  to  him,  at  a  reasonable  time  and  place, 
of  a  kind  that  he  undertakes  or  is  accustomed  to  carry. 

Enacted  March  21,  1872. 

70  Cal.  178 ;  81  Cal.  268. 

Obligation  to  carry  luggage :  Civ.  C.  §  2180. 

Obligation  to  carry  me.ssages :  Civ.  C.  §  2209. 

Obligation  to  carry  passengers  and  property  :  Civ.  C.  §  482. 

Providing  seats,  and  overloading  of  vehicle :  Civ.  C.  §  2185. 

Refusal  to  tnke  passengers,  penalty:   Pen.  C.  §  B65. 

Obligation  not  to  give  preference. 

§  2170.  A  common  carrier  must  not  gi\e  preference,  in  time, 
price,  or  otherwise,  to  one  person  over  another.  Every  common 
carrier  of  passengers  by  railroad,  or  by  vessel  plying  upon  waters 
lying  wholly  within  this  state,  shall  establish  a  schedule  time 
for  the  starting  of  trains  or  vessels  from  their  respective  stations 
or  wharves,  of  which  public  notice  shall  be  given,  and  shall, 
weather  permitting,  except  in  case  of  accident  or  detention 
caused  by  connecting  lines,  start  their  said  trains  or  vessel  at 
or  within  ten  minutes  after  the  schedule  time  so  established  and 
notice  given,  under  a  penalty  of  two  hundred  and  fifty  dollars  for 
each  neglect  so  to  do,  to  be  recovered  by  action  before  any  court 
of  competent  jurisdiction,   upon  complaint   filed  by   the  district 


250  CIVIL  CODE.  S  2170 

attorney  of  the  county  in  the  name  of  the  people,  sxud  paid  into 
the  common  school  fund  of  the  said  county.  ^ 

Amended  April  2,  ISSO ;  amendts.  3880,  p.  2. 
70  Cal.  178. 

Time  table  for  railroads :  Civ.  C.  §  481 ;  see,  also,  Civ.  C. 
§§  2172  and  2196. 

What  preferences  he  must  give. 

S  2171.  A  common  carrier  must  always  ,^ive  a  preference  in 
time,  and  may  give  a  ]ireference  in  iiricc.  to  the  TT^niled  States 
and  to  this  state. 

Enacted  JNIarcli  21.   1872. 

Starting. 

§  2172.  A  common  carrier  must  start  at  such  time  and  place 
as  he  announces  to  the  public,  unless  detained  by  accident  or  the 
elements,  or  in  order  to  connect  with  carriers  on  other  lines  of 
travel. 

Amended  March  30,  1874  ;  amendts.  1873-4,  p.  240. 

See,  also,  Civ.  C.  §§  481,  2170,  and  2196. 

Compensation. 

§  2173.  A  common  carrier  is  entitled  to  a  reasonable  com- 
pensation and  no  more,  which  he  may  require  to  be  paid  in 
advance.     If  payment  thereof  is  refused,  he  may  refuse  to  carry. 

Enacted  March  21,  1872. 

Lif'n  on  luggage  of  passenger  :   Civ.  C.  §  2191. 

Obligations  of  carrier  altered  only  by  agreement. 

S  2174.  The  obligations  of  a  common  carrier  can  not  he  lim- 
ited by  general  notice  on  his  part,  l)ut  may  be  limited  by  special 
contract. 

Amended  March  30,  1874  ;  ameudts.  1873-4,  p.  249. 

120  Cal.  158,  159;  151  Cal.  767.  770;  2  Cal.  App.  175. 

See,  also,  Civ.  C.  §§  2170  and  2200. 

Certain  agreements  void. 

§  2175.  A  common  carrier  can  not  be  exonerated,  by  auy 
agreement  made  in  anticipation  thereof,  from  liability  for  the 
gross  negligence,  fraud,  or  willful  wrong  of  himself  or  his  serv- 
ants. 

Enacted  March  21,  1872. 

118  Cal.  689,  690,  691,  695;  120  Cal.  1.58;  131  Cal.  589; 
151  Cal.  767,  768,  770,  777. 


§217f)  CIVIL   CODE.  251 

Effect  of  written  contract. 

§  2176.  A  passenger,  consignor,  or  consignee,  by  (accepting  a 
ticket,  bill  of  lading,  or  written  contract  for  carriage,  with  a 
knowledge  of  its  terms,  assents  to  the  rate  of  hire,  the  time,  place, 
and  manner  of  delivery  therein  stated  ;  and  also  to  the  limitation 
stated  therein  upon  the  amount  of  the  carrier's  liability  in  case 
property  carried  in  packages,  trunks,  or  boxes,  is  lost  or  injured, 
when  the  value  of  such  property  is  not  named  ;  and  also  to  the 
limitation  stated  .therein  to  the  carrier's  liability  for  loss  or 
injury  to  live  animals  carried.  But  his  assent  to  any  other 
modification  of  the  carrier's  obligations  contained  in  such  instru- 
ment can  be  manifested  only  by  his  signature  to  the  same. 

Amended  March  30,  1874  ;  amendts.  1873-4,  p.  249. 

CG  Cal.  299  ;  101  Cal.  195  ;  113  Cal.  334  ;  118  Cal.  689, 
G91 ;  131  Cal.  586,  587,  589 ;  152  Cal.  185. 

Loss  of  valuable  letters. 

§  2177.  A  common  carrier  is  not  responsible  for  loss  or  mis- 
carriage of  a  letter,  or  package  having  the  form  of  a  letter,  con- 
taining money  or  notes,  bills  of  exchange,  or  other  papers  of 
value,  unless  he  be  informed  at  the  time  of  its-  receipt  of  the 
value  of  its  contents. 

Enacted  March  30,  1874  ;  amendts.  1873-4,  p.  2.50. 

Article  II. 
Common  Carriers  of  Persons. 

Sec.  2180.  Obligation  to  carry  luggage. 

2181.  Luggage,  what.     Bicycles. 

2182.  Liability  for  luggage. 

2183.  Luggage,  how  carried  and  delivered. 

2184.  Obligation  to  provide  vehicles. 

2185.  Seats  for  passengers. 

218G.  Regulations  for  conduct  of  busines.s. 

2187.  Fare,  when  payable. 

2188.  Ejection  of  passengers. 

2189.  Passenger  who  has  not  paid  fare. 

2190.  Fare  not  payable  after  ejection. 

2191.  Carrier's  lien. 

Obligation  to  carry  luggage. 

§  2180.  A  common  carrier  of  persons,  unless  his  vehicle  is 
fitted  for  the  reception  of  persons  exclusively,  must  receive  and 
cari-y  a  reasonable  amount  of  baggage  for  each  passenger  without 


252  CIVIL  CODK.  §  2180 

ehargo,  except  for  au  excess  of  weight  over  oue  huudred  pounds 
to  a  passenger ;  if  such  carrier  is  a  proprietor  of  a  stage  line,  he 
need  not  receive  and  carry  for  each  passenger  by  such  stage  line, 
without  charge,  more  tlian  sixty  pounds  of  baggage. 

Amended  March  21.  1905;  stats.  1905,  p.  615. 
70  Cal.  172 ;  85  Cal.  330. 

Note. — §  2180.  The  change  consists  in  the  substitution  of  the 
word  "need"  for  "may."  The  present  section  would  seem  to 
prohibit  a  carrier  by  stage  from  receiving  more  than  sixty 
pounds  of  luggage,  wherein  it  was  manifestly  intended  only  to 
relieve  him,  at  his  election,  from  receiving  a  greater  amount. 

Luggage,  what — Bicycles. 

§  2181.  Luggage  may  consist  of  whatever  the  passenger  takes 
with  him  for  his  personal  use  and  convenience  according  to  the 
habits  or  wauts  of  the  particular  class  to  which  he  belongs, 
either  with  reference  to  the  immediate  necessities,  or  to  the  ulti- 
mate purpose  of  the  journey.  No  crate,  cover,  or  other  protec- 
tion shall  be  required  for  any  bicycle  carried  as  luggage,  but  no 
passenger  shall  be  entitled  to  carry  as  luggage  more  than  one 
bicycle. 

Amended  February  9,  1897 ;  stats.  1897,  p.  4. 
70  Cal.  173 ;  85  Cal.  330. 

Liability  for  luggage. 

§  2182.  The  liability  of  a  carrier  for  luggage  received  by  him 
with  a  passenger  is  the  same  as  that  of  a  common  carrier  of 
property. 

Enacted  March  21,  1S72. 
70  Cal.  173. 

Liability  of  carriers  generally  :  Civ.  C.  §  2194  et  seq. 

Lien  on  baggage  for  fare :  Civ.  C.  §  2191. 

Luggage,   how/  carried  and  delivered. 

§  2183.  A  common  carrier  must  deliver  every  passenger's  lug- 
gage, whether  within  the  prescriljed  weight  or  not,  immediately 
upon  the  arrival  of  the  passenger  at  his  destination  ;  aud,  unless 
the  vehicle  would  be  overcrowded  or  overloaded  thereby,  must 
carry  it  on  the  same  vehicle  by  which  he  carries  the  passenger  to 
whom  it  belonged,  except  that  where  luggage  is  transported  by 
rail,  it  must  be  checked  aud  carried  in  a  regular  baggage  car ; 
and  whenever  passengers  neglect  or  refuse  to  have  their  luggage 
so  checked  and  transported,  it  is  carried  at  their  risk. 

Amended  March  30,  1874;  amendts.  1873-4,  p.  250. 
70  Cal.  173. 

Duty  to  furnish  check  :  Civ.  C.  §  479. 


§  2184  CIVIL  CODE.  268 

Obligation  to  provide  vehicles. 

§  2184.  A  common'  carrier  of  persons  must  provide  a  suffi- 
cient number  of  vehicles  to  accommodate  all  the  passengers  who 
can  be  reasonably  expected  to  require  carriage  at  any  one  time. 

Enacted  March  21,  1872. 

See,  also,  Civ.  C.  §  2185. 

Refusal  to  take  passengers,  penalty:   See  Pen.  C.  §  30r>. 

Seats  for  passengers. 

§  2185.  A  common  carrier  of  persons  must  provide  every  pas- 
senger with  a  seat.  TTo  must  not  overload  his  vehicle  by  receiv- 
ing and  carrying  more  passengers  Mian  its  lati^d  capacity  allows. 

Enacted  March  21,  1872. 

See,  also,  Civ.  C.  §§483,  21S4,  nnd  21()1». 

Regulations  for  conduct  of  business. 

§  2186.  A  common  carrier  of  persons  may  make  rules  for  the 
conduct  of  his  business,  and  may  require  passengers  to  conform 
to  them,  if  they  are  lawful,  public,  uniform  in  their  application, 
iind  reasonable. 

Enacted  March  21,  1872. 

97  Cal.  464  ;  141  Cal.  732. 

See.  also,  Civ.  C.  §  465,  subds.  10  and  11,  and  §  484. 

Fare,  when  payable. 

§2187.  A  common  carrier  may  demand  the  fare  of  i)assen- 
gers,  either  at  starting  or  at  any  subsequent  time. 

Enacted  March  21,  1872. 

81  Cal.  298  ;  97  Cal.  404. 

Penalty  for  overcharge  :  Pen.  C.  §  r)2r>. 

Ejection  of  passengers. 

§  2188.  A  passenger  who  refuses  to  pay  his  faro  or  to  con- 
form to  any  lawful  regulation  of  the  carrier,  may  be  ejected 
from  the  vehicle  by  the  carrier.  But  this  must  be  done  with  as 
little  violence  as  possible,  and  at  any  usual  stopping-place  or 
near  some  dwelling-house. 

Enacted  March  21,  1872. 

81  Cal.  299 ;  97  Cal.  4G3 ;  141  Cal.  732  ;  145  Cal.  452. 

Ejection  of  passenger  for  non-payment  of  fare :  Civ.  C.  §  487. 

Passenger  who  has  not  paid  fare. 

§  2189.  A  passenger  upon  a  railroad  train  who  has  not  paid 
his  fare  before  entering  the  train,  if  he  has  been  afforded  an 


254  (TVTL  CODE.  §  2189 

opportunity  to  do  so,  must,  upou  demand,  pay  ten  per  cent  in 
addition  to  the  regular  rate. 

Enacted  March  21,  1872. 

Ejection  of  passenger  for  non-payment  of  fare :  Civ.  C.  §  487. 

Fare  not  payable  after  ejection. 

§  2190.  After  having  ejected  a  passenger,  a  carrier  has  no 
right  to  require  the  payment  of  any  part  of  his  fare. 

Enacted  March  21,  1872. 

Carrier's  lien. 

§2191.  A  common  carrier  lia.s  a  lieu  upon  Iho  luggage  of  a 
passenger  for  the  payment  of  such  fare  as  he  is  entitled  to  from 
him.     This  lien  is  regulated  by  the  title  on  "Liens." 

Enacted  March  21,  1872. 

Artici^e  III. 
Common   Carriers  of  Property. 

Sec.  2194.  Liability  of  inland  carrior-s  for  loss. 

2195.  When  exemptions  do  not  apply. 

2196.  Liability  for  delay. 

2197.  Liability  of  marine  carriers. 

2198.  Same. 

2199.  Perils  of  sea,  what. 

2200.  Consignor  of  valuables  to  declare  their  nature. 

2201.  Delivery  of  freight  beyond  usual  route. 

2202.  Proof  to  be  given  in  ca.se  of  loss. 

2203.  Carrier's  services,  other  than  carriage  and  delivery. 

2204.  Sale  of  perishable  property  for  freight. 

Liability  of   inland  carriers  for   loss. 

§  2194.  Unless  the  consignor  accompanies  the  freight  and 
retains  exclusive  control  thereof,  an  inland  common  carrier  of 
property  is  liable,  from  the  time  that  he  accepts  imtil  he  relieves 
himself  from  liability  pursuant  to  sections  2118  to  2122,  for 
the  loss  or  injury  thereof  from  any  cause  whatever,  except : 

1.  An  inherent  defect,  vice,  or  weakness,  or  a  spontaneous 
action,  of  the  property  itself ; 

2.  The  act  of  a  public  enemy  of  the  United  States,  or  of  this 
state ; 

3.  The  act  of  the  law  ;  or. 


§  2194  CIVIL  CODE.  255 

4.  Any  irresistible  superhnmau  cause. 
Enacted  March  21,  1872. 

101  Cal.  194;  VIII  Cal.  App.  Dec.  391,  394. 
Selling  perishable  articles :  Civ.  C.  §  2204. 
When  carriers  guilty  of  embezzlement :   See  Pen.  C.  §  505. 

When  exemptions  do  not  apply. 

§  2195.  A  common  carrier  is  liable,  even  in  the  cases  excepted 
by  the  last  section,  if  his  want  of  ordinary  care  exposes  the 
l»roperty  to  the  cause  of  the  loss. 

Amended  March  21,  1905;  stats.  1905,  p.  U15. 

Note. — §  2195.  The  change  con.sists  in  the  substitution  of  tbc 
words  "want  of  ordinary  care"  for  "ordinary  negligence." 

Liability  for  delay. 

§  2196.  A  common  carrier  is  liable  for  delay  only  when  it  is 
caused  by  his  want  of  ordinary  care  and  diligence. 

Amended  March  30,  IS74;  amendts.  1873-4.  p.  251. 
101  Cal.  193. 

Liability  of  marine  carriers. 

§  2197.  A  marine  carrier  is  liable  in  like  manner  as  an 
inland  carrier,  except  for  loss  or  injury  caused  by  the  perils  of 
the  sea  or  fire. 

Enacted  March  21,  1872. 

Same. 

§  2198.  The  liability  of  a  common  cari'ier  ])y  sea  is  furtlier 
regulated  by  acts  of  congress. 

Enacted  March  21,  1S72. 

Perils  of  sea,  what. 

S  2199.     Perils  of  the  sea  are  from  : 

1.  Storms  and  waves  ; 

2.  Rocks,  shoals,  and  rapids ; 

3.  Other  obstacles,  though  of  human   origin  ; 

4.  Changes  of  climate  ; 

5.  The  confinement  necessary  at  sea  : 
(>.  Animals  peculiar  to  the  sea ;  and. 

7.  All  other  dangers  peculiar  to  the  sea. 
Enacted  March  21,  1872. 
70  Cal.   147,  148. 


256  c;iviL  CODE.  §  2200 

Consignor  of  valuables  to  declare  their  nature. 

§  2200.  A  common  cai'rier  of  gold,  silver,  platiua,  or  pre- 
cious stones,  or  of  imitations  thereof,  in  a  manufactured  or 
unmanufactured  state ;  of  timepieces  of  any  description ;  of 
negotiable  paper  or  other  valuable  writings ;  of  pictures,  glass, 
or  chinaware ;  of  statuary,  silk,  or  laces ;  or  of  plated  ware 
of  any  kind,  is  not  liable  for  more  than  fifty  dollars  upon  the 
loss  or  injury  of  any  one  package  of  such  articles,  unless  he 
has  notice  upon  his  receipt  thereof,  by  mark  upon  the  package 
or  otherwise,  of  the  nature  of  the  freight:  nor  is  such  carrier 
liable  upon  any  package  carried  for  more  than  the  value  of  tlir 
iirticles  named  in  the  receipt  or  the  bill  of  lading. 

Amended  March  30.  1874;  ameudts.  1S73-4.  p.  lial. 
84  Cal.  313,  314 ;  118  Oal.  680. 

Delivery  of  freight  beyond  usual  route. 

§  2201.  If  a  common  carrier  accepts  freight  for  a  place 
beyond  his  usual  route,  he  must,  unless  he  stipulates  otherwise, 
deliver  it  at  the  end  of  his  route  in  that  direction  to  some  other 
competent  carrier  carrying  to  the  place  of  address,  or  connected 
with  those  who  thus  carry,  and  his  liability  ceases  upon  making 
such  delivery. 

Enacted  March  21,  1872. 

V>1  Cal.  463;  101  Cal.  195;  118  Cal.  651. 

Proof  to  be  given  in  case  of  loss. 

S  2202.  If  freight  addressed  to  a  ])lace  beyond  the  usual 
iiiute  of  the  common  carrier  who  first  received  it  is  lost  or 
injured,  he  must,  within  a  reasonable  lime  after  demand,  give 
satisfactory  proof  to  the  consignor  that  the  loss  or  injury  did 
not  occur  while  it  was  in  his  charge,  or  he  will  be  himself 
liable  therefor. 

Enacted  March  21,  1872. 

Carriers'  service,  other  than  carriage  and  delivery. 

§  2203.  In  respect  to  any  service  rendered  by  a  common 
carrier  about  freight,  other  than  its  carriage  and  delivei-y,  his 
rights  and  obligations  ai'e  defined  by  the  titles  on  deposit  and 
service. 

Enacted  March  21,  1872. 

Sale  of  perishable  property  for  freight. 

§  2204.  If,  from  any  cause  other  than  want  of  ordinary  care 
and  diligence  on  his  part,  a  common  carrier  is  unable  to  deliver 
perishable  property  li-ansported  by  him,  and  collect  his  charges 


§  2204  CIVIL  CODE.  257 

thereon,  he  may  cause  the  property  to  be  sold  in  open  market, 
to  satisfy  his  lien  for  freightage. 

Enacted  March  30,  1874 ;  amendts.  1873-4.  p.  251. 

Article  IV. 

Common    Carriers   of    Messages. 

(Telephone  and  Telegraph  corporations :  See,  also,  Civ.  C. 
§§536  to  540.) 

Sec.  2207.     Order  of  transmission  of  telegrapliic  messages. 

2208.  Order  in  otlier  cases. 

2209.  Damages  wlien  message  is  refused  or  postponed. 

Order  of  transmission   of  telegraphic   messages. 

§  2207.  A  carrier  of  messages  by  telegraph  must,  if  it  is 
practicable,  transmit  every  such  message  immediately  upon  its 
receipt.  But  if  this  is  not  practicable,  and  several  messages 
accumulate  upon  his  hands,  he  must  transmit  them  in  the 
following  order : 

1.  Messages  from  public  agents  of  the  United  States  or  of 
this  state,  on  public  business : 

2.  Messages  intended  in  good  faith  for  immediate  publication 
in  newspapers,  and  not  for  any  secret  use ; 

3.  Messages  giving  information  relating  to  the  sickness  or 
death  of  any  person ; 

4.  Other  messages  in  the  order  in  which  they  were  received. 
Enacted  March  21,  1872. 

Neglect':   See  Pen.  C.  §  638. 

Order   in   otiier   cases. 

§  2208.  A  common  carrier  of  messages,  otherwise  than  by 
telegraph,  must  transmit  messages  in  the  order  in  which  ho 
receives  them,  except  messages  from  agents  of  the  United  States 
or  of  this  state,  on  pul)lic  business,  to  which  he  must  always 
give  priority.  But  he  may  fix  upon  certain  times  for  the 
simultaneous   transmission   of  messages  previously   received. 

Enacted  March  21,  1872. 

Damages  when  message  is  refused  or  postponed. 

§  2209.  Every  person  whose  message  is  refused  or  postponed, 
contrary  to  the  provisions  of  this  chapter,  is  entitled  to  recover 
from  the  carrier  his  actual  damages,  and  lifty  dollars  in  addi- 
tion  thereto. 

Enacted  March  21,  1872. 


258  POLITICAL  CODE.  §  10 


POLITICAL  CODE. 


PORTIONS  RELATING  TO  PRIVATE  CORPORATIONS. 


PRELIMINARY    PROVISIONS. 
Sec.  10.     Holidu-ys. 
1 1.      Same. 
17.     Words  and  terms  u.sed  in  the  Political  Code,  definition  of. 

Holidays. 

§  10.  Holidays,  within  tlie  meaning  of  this  code,  are  every 
Sunday,  the  first  day  of  January,  the  twenty-second  day  of 
February,  the  thirtieth  day  of  jNIay,  the  fourth  day  of  July, 
tlio  ninth  day  of  September,  the  first  Monday  in  September, 
the  twelftli  day  of  October  to  be  known  as  "Discovery  Day," 
the  twenty-fifth  day  of  December,  every  day  in  which  an  elec- 
tion is  held  throughout  the  state,  and  every  day  appointed  by 
the  pi-esident  of  the  United  States  or  by  the  governor  of  this 
state  for  a  public  fast,  thanksgiving  or  holiday.  If  the  first 
day  of  Janttary,  the  twenty-second  day  of  February,  the 
thirtieth  day  of  May,  the  fotirth  day  of  July,  the  ninth  day 
of  Sei)tember,  the  twelfth  day  of  October  or  the  twenty-fifth 
d;i.\'  of  December  fall  upon  a  Sunday,  the  Monday  following 
is  a  holiday.  Every  Saturday  from  twelve  o'clock  noon  until 
twelve  o'clock  midnight  is  a  holiday  as  regards  the  transaction 
of  business  in  the  public  offices  of  the  state,  and  also  in  polit- 
ical divisions  thereof  where  laws,  ordinances  or  charters  pro- 
vide that  public  oflSces  may  be  closed  on  holidays ;  jjrovided, 
this  shall  not  be  construed  to  prevent  or  invalidate  the  issu- 
ance, filing,  service,  execution  or  recording  of  any  legal  process 
or  written  instrument  whatever  on  such   Saturday   afternoons. 

Amended  Fel)ruary  19,  1009;  stats.  1909,  p.  23;  in  effect 
in  sixty  days. 

147  Cal.  77G. 

Simihir  itrovisions  ;   Civ.  C.  §  7;  Code  Ci\.  I'ruc.  §  Id. 

See,   als(>.   "lloiidnys,"   stnlutes   ;il    large.   Apin'ndi.v. 


§  11  POLITICAL    CODK.  2~id 

Same. 

§  11.  If  the  first  day  of  January,  tlic  twciiLy-scioiul  day  of 
February,  the  fhirtieth  day  of  May,  the  fourth  day  of  July, 
the  ninth  day  of  Septorahcr,  the  twelfth  day  of  (October  or  the 
twenty-fifth  day  of  December  fall  upon  a  Sunday,  the  Monday 
following  is  a  holiday. 

Amended  February  19,  1900;  stats.  1909,  p.  24:  in  effect  in 
sixty  days. 

Words  and  terms  used  in  the  Political  Code,  definition  of. 

§  17.  Words  used  in  this  code  in  the  present  tense  include 
tiie  future  as  well  as  the  present ;  words  used  in  the  masculine 
gender  include  the  feminine  and  neuter;  the  singular  number 
includes  the  plural,  and  the  plural  the  singular;  the  word 
"person"  includes  a  corporation  as  well  as  a  natural  person  : 
writing  includes  printing  and  typewriting;  oath  includes  af- 
firmation or  declaration  ;  every  mode  of  oral  statement  under 
oath  or  affirmation  is  embraced  by  the  term  "testify,"  and 
every  written  one  in  the  term  '"depose'-' ;  signature  or  subscrip- 
tion includes  mark,  when  the  jierson  can  not  write,  his  name 
being  written  near  it  by  a  person  who  writes  his  own  name  as 
a  witness ;  provided,  that  when  a  signature  is  made  by  a  mark 
it  must,  in  order  that  the  same  may  be  acknowledged  or  serve 
as  a  signature  to  any  sworn  statement,  be  witnessed  by  two 
persons  who  must  subscribe  their  own  names  as  witnesses 
1  hereto. 

The  following  words,  also,  have  in  this  code  the  signification 
attached  to  them  in  this  section,  unless  otherwise  apparent  from 
the  context : 

One — The  word  "property"  includes  both  real  and  personal 
property  ; 

Tivo — The  words  "real  property"  are  coextensive  with  lands, 
tenements   and  hereditaments ; 

Three — The  words  "personal  property"  include  money,  goods, 
chattels,  things  in  action,  and  evidences  of  debt ; 

Four- — The  word  "month"  means  a  calendar  month,  unless 
othei-wise  expressed  ; 

Fire — The  word  "will"  includes  (•odicil ; 

Sf'a; — The  word  "writ"  signifies  an  order  or  precept  in  writing, 
issued  in  the  name  of  the  people,  or  of  a  court  or  judicial 
oflBcer ;  and  the  word  "process"  a  writ  or  summons  issued  in 
the  course  of  judicial  proceedings ; 


260  POLITICAI,    CODK.  §  17 

Seven — The  word  "vessel,"  wheu  used  with  ret'ereuce  to  ship- 
ping, includes  ships  of  all  kinds,  steamboats,  and  steamships, 
canal  boats,  bai'ges,  and  every  structure  adapted  to  be  navigated 
from  place  to  place  for  the  transportation  of  merchandise  or 
persons ; 

EifjM— The  term  "peace  officer"  signifies  any  one  of  the  officers 
mentioned  in  section  eight  hundred  and  seventeen  of  the  Penal 
Code; 

Nine — The  term  "magistrate"  signifies  any  one  of  the  officers 
mentioned  in  section  eight  hundred  and  eight  of  the  Penal  Code ; 

Ten — The  word  "state,"  when  applied  to  the  different  parts 
of  the  United  States,  includes  the  District  of  Columbia  and 
the  territories ;  and  the  words  "United  States"  may  include  the 
district  and  territories. 

Eleven— The  word  "section,"  whenever  used  in  this  code, 
refers  to  a  section  of  this  code,  unless  some  other  code  or 
statute  is  expressly  mentioned. 

Amended  March  18,  1905  ;  stats.  1905.  p.  129. 
54  Cal.  35 ;  62  Cal.  110 ;  92  Cal.  614. 

Similar  provisions:  Civ.  C.  S14:  Code  Civ.  Proc.  §37;  Pen. 
C.  §7. 

PART  III. 

OF  THE  GOVERNMENT  OF  THE  STATE. 


TITLE  I. 

Public  Officers. 

CHAPTER  III. 
EXECUTIVE  OFFICERS 

Article  III. 
'     Of  the  Governor. 
Sec.  380.     General  duties. 
General  duties. 

§  380.  In  addition  to  those  prescribed  by  the  constitution, 
the  governor  has  the  power  and  must  perform  the  duties  pre- 
scribed in  this  and  the  following  sections  : 


§  8S0  POLITICAL    CODE.  261 

G.  He  may  require  the  attorney  geueral  or  district  attorney 
of  any  county  to  inquire  into -the  affairs  or  management  of  any 
forporaliou  existing  under  the  laws  of  this  state. 

Enacted  March  12,  1872. 

Article  V. 

Of  the  Secretary  of  State. 

Sec.  416.     Fees. 

Fees. 

§416.  The  .secretary  of  state,  for  services  performed  in  his 
office,  must  cliarge  and  collect  the  following  fees  : 

1.  For  a  copy  of  any  law,  resolution,  record,  or  other  docu- 
ment or  paper  on  file  in  his  office,  twenty  cents  per  folio. 

2.  For  comparing  a  copy  of  any  law,  resolution,  record,  or 
other  document  or  paper  with  the  original,  or  the  certified  copy 
of  the  original,  on  file  in  his  office,  five  cents  per  folio. 

3.  For  affixing  certificate  and  .seal  of  state,  unless  othenAdse 
provided  for,  two  dollars. 

4.  For  filing  articles  of  incorporation,  if  the  capital  stock 
amoimts  to  twenty-five  thousand  dollars  or  less,  fifteen  dollars  ; 
if  the  capital  stock  amounts  to  over  twenty-five  thousand  dollars, 
and  not  over  seventy-five  thousand  dollars,  twenty-five  dollars  : 
if  the  capital  stock  amounts  to  over  seventy-five  thousand 
dollars,  and  not  over  two  hundred  thousand  dollars,  fifty  dol- 
lars ;  if  the  capital  stock  amounts  to  over  two  hundred  thousand 
dollars,  and  not  over  five  hundred  thousand  dollars,  seventy- 
five  dollars ;  if  the  capital  stock  is  over  five  hundred  thousand 
dollars,  and  not  over  one  million  dollars,  one  hundred  dollars ; 
if  the  capital  stock  is  over  one  million  dollars,  fifty  dollars 
additional  for  every  five  hundred  thousand  dollars  or  fraction 
thereof  of  capital  stock  over  and  above  one  million  dollars : 
for  filing  articles  of  incorporation  without  capital  stock, 
except  cooperative  associations,  five  dollars ;  for  filing  articles 
of  incorporation  of  cooperative  associations,  formed  under  the 
act  of  eighteen  hundred  and  ninety-five,  and  acts  supplementary 
thereto  or  amendatory  thereof,  fifteen  dollars. 

[Subd.  4:  See  editorial  note,  end  of  section.] 

5.  For  recording  articles  of  incorporation,  twenty  cents  per 
folio. 

0.  For  issuing  certificate  of  incorporation,  three  dollars. 


262  POLITIOAL  CODE.  §41G 

7.  For  filing  certificate  of  increase  of  capital  slock,  five  dol- 
lars for  every  fifty  thousand  dollars  or  fraclion  thereof  of  sncli 
increase. 

S.  For  lilins'  certificate  of  decrease  of  capital  slock,  five 
dollars. 

9.  For  filing  notice  of  removal  of  principal  jdace  of  business, 
five  dollars. 

10.  For  filing  amended  articles  of  incorporation,  unless  other- 
wise provided  for,  five  dollars. 

11.  For  filing  certificate  of  creation  of  bonded  indebtedness, 
or  increase  or  decrease  thereof,  five  dollars. 

12.  For  issuing  certificate  of  increase  or  decrease  of  capital 
stock,   three  dollars. 

13.  For  filing  certificate  on  continuance  of  existence,  five 
dollars. 

14.  For  issuing  certificate  of  continuance  of  existence,  three 
dollars. 

15.  For  filing  claim  to  trade-mark,  and  issuing  certificate  of 
filing,  five  dollars. 

16.  For  issuing  certificate  of  filing  of  any  document,  not 
otherwise  provided   for,   three  dollars. 

17.  For  filing  certificate  of  increase  or  decreas<»  of  nuinl)er  of 
directors,  five  dollars. 

IS.  For  issuing  certificate  of  increase  or  decrease  of  uunilicr 
of  directors,   three  dollars. 

19.  For  receiving  and  recording  each  oflicial  bond,  five 
dollar.s. 

20.  For  filing  notice  of  appointment  of  agent,  five  dollars. 

21.  For  each  commission,  passport,  or  other  document  signed 
by  the  governor  and  attested  by  the  secretary  of  state  (pardons, 
military  commissions,  and  extradition  papers  excepted),  five 
dollars. 

22.  For  each  patent  for  land  issued  by  the  governor,  if  for 
one  hundred  and  sixty  acres  or  less,  one  dollar ;  and  for  each 
additional  one  hundred  and  sixty  acres,  or  fraction  thereof, 
one  dollar. 

23.  For  issuing  certificate  of  oSicial  character,  two  dollars. 

24.  For  recording  miscellaneous  documents  or  papers,  twenty 
cents  per  folio. 

25.  For  filing  certified  copy  of  order  and  decree  of  court, 
changing  name,  or  certified  copy  of  order  and  decree  of  court, 
dissolving  a  corporation,  five  dollars. 


S    U^^  POLITICAL    CODE.  2(53 

No  member  of  the  legislature  or  state  officer  shall  be  charged 
for  any  search  relative  to  matters  appertaining  to  the  duties  of 
their  office ;  nor  shall  they  be  charged  any  fee  for  a  certified 
copy  of  any  law  or  resolution  passed  by  the  legislature  relative 
to  their  official  duties. 

All  fees  collected  by  the  secretary  of  state  must,  at  the  cud 
of  each  month,  be  paid  into  the  state  ti-easury.  Three  thou- 
sand five  hundred  dollars  of  such  monthly  returns  shall  Im' 
credited  to  and  constitute  the  state  library  fund,  and  the  bal- 
ance shall  be  paid  into  the  general  fund  of  the  state. 

Amended  March  18.  1907;  stats.  1907,  p.  352. 
Ed.  Note. — §416,  subd.  4.     The  act  of  March  27,  1895    (stats. 
1895,  page  221)   providing  for  incorporation  of  co-operative  asso- 
ciations,   has  been   codified   and   superseded   by   sections    653&   to 
653Z  of  the  Civil  Code,  as  enacted  in  1905. 

For  fees  of  county  clerk,  see  §  4300^,  post. 

xiUXICLE  XVI. 

[Old  article  XVI  (sections  594  to  634,  relating  to  insurance") 
repealed  and  a  new  article  XVI  substituted  March  S,  1907  ;  stats. 
1907,  p.  141.  Sections  635a  to  635?^  defining  bond  investment 
companies,  added  to  code  March  18,  1905  ;  stats.  1905,  p.  156.] 

Insurance   Commissioner. 

(Insurance  coi-purations  :  Hee  Civ.  0.  §414  cl  acq.;  see,  also, 
■"Insurance,"  statutes  at  large,  Appendix.) 

Sec.  588.  Eligibility. 

589.  Salary. 

591.  Rooms.     E.vpenses.      Special  fund. 

592.  Office. 

593.  Bond. 

594.  Insurance  classified. 

594«.   Foreign  companies,  deposit  of  securities. 

595.  General  duties  of  commissioner.     Companies  may  sur- 

render certificate  ;  manner  of. 

596.  Certificate  to  do  business.     Licenses  to  procure  insur- 

ance  In   companies   not   authorized  to   do   business. 
Affidavit    required.     Account   of   business.     Bond   of 
licensee.     Examination  of  policies  Issued  by  licensee. 
59()((.   Attorney  general  to  examine  documents. 

597.  Examination    of    companies    alleged    to    bo    insulveiU. 

Inspection  of  books. 


2(j4  POLITICAL   CODE. 

Sec.  59S.  Policyholders  may  secure  Information  about  policies. 
Company  must  make  statement.  Lost  policy,  stay 
of  rights. 

599.  Subpoena. 

600.  Records  of  commission. 

600rt.   Restoi'ation  of  authority  after  revocation.      [Repealed.] 

601.  Employment  of  actuary. 

602.  What  constitutes  insolvency. 

602a..   How   condition   of  company   shall   be  estimated.     How 
reserve  to  be  computed. 

603.  Insolvent  companies,  notice  of  revocation  of  certificate. 
603«.  Restoration  of  authority  after  revocation. 

604.  Report  to  attorney  general. 
604a.  Insolvency  proceedings. 

605.  Fees  of  commissioner. 

606.  Assessments. 

607.  What  papers   companies  must   file  witii   commissioner. 

608.  Actions  not  to  be  transferred  to  United  States  courts. 

609.  Approval  of  name  of  company. 

610.  Statements  to  be  verified. 

611.  Annual  statements  of  companies. 

612.  What  statements  must  show. 

613.  Statements  of  life,  health,  and  accident  companies. 

614.  Mutual  companies. 

615.  Forms  of  statements  to  be  furnished. 

616.  Foreign    companies    must    designate    name    of    agent. 

Stipulation.     Service  of  process. 

617.  Penalty  for  failure  to  file  statements. 

618.  When  laws  of  other  states  require  trust  deposit,  duty 

of  commissioner.      Special  deposit  in  state  trea.sury. 

619.  Certificate  of  deposit. 

620.  Witlidrawal  of  deposit. 

621.  Annual  examination  of  securities. 

622.  Relative  to  laws  of  other  states. 

622a.  Tax   on    gross    premiums,    other    than    California   com- 
panies. 

623.  Bond  required. 

624.  Same. 

625.  Commissioner  to  furnisli  data  to  county  assessors. 
625a.   List  of  surety  companies  to  be  furnished  county  clerics. 

What  list  shall  show. 

626.  Full  compliance  of  law  required. 

627.  Payments  to   be  on  gold  basi.*:. 

628.  Separate  valuation  of  policies. 

029.     Life    companies    must    furnish    data    for    sakiation    of 
policies.     Basis  of  valunlion. 


§  588  POLITICAL    CODE.  265 

Sec.  630.     Fraternal  societies  exempt. 

631.  Right  of  action  against  commissioner. 
631a.  Publication  of  notice  of  withdrawal. 

632.  District  attorney  to  be  notified  of  penal  offense. 

633.  Agents  must  file  duplicate  power  of  attorney. 

634.  Registration  of  life  policies.     Special  deposits.     Excess 

of  securities. 
634a,  Definition  of  certain  words. 
634b.  Penalties  payable  on  demand. 

Eligibility. 

§  588.  No  person  is  eligible  to  the  office  of  insurauce  com- 
missioner or  deputy  who  is  an  officer,  agent,  or  employee  of  an 
insurance  company. 

Enacted  March  8.  1907:  stats.  1907,  p.  141. 

Salary. 

§  589.  The  annual  salary  of  the  insurance  commissioner  is 
four  thousand  dollars,  and  the  annual  salary  of  the  deputy  of 
the  insurance  commissioner  is  two  thousand  seven  hundred 
dollars. 

Enacted  March  S.  1907;  stats.  1907,  p.  141. 

Rooms — Expenses — Special  fund. 

§591.  The  commissioner  may  procure  suitable  rooms  for  his 
offices  and  may  provide  a  suitable  safe  and  furniture  therefor. 
He  may  also  provide  stationery,  fuel,  printing  and  other  con- 
veniences and  assistance  and  incur  traveling  and  such  other 
expenses  as  are  necessary  for  the  transaction  of  the  business 
of  his  office.  Out  of  the  funds  paid  into  the  state  treasury  by 
the  insurance  commissioner,  there  shall  be  set  aside  and  reserved 
each  and  every  year  the  sum  of  twenty-five  thousand  dollars  as 
a  special  fund  to  be  called  the  insurauce  commissioner's  special 
fund.  All  expenditures  authorized  in  this  section  must  be 
audited  by  the  board  of  examiners,  who  must  allow  the  same 
and  direct  payment  thereof  to  be  made,  and  the  conti'oller  shall 
draw  warrants  therefor  on  the  state  treasury  for  the  payment 
of  the  same  to  the  insurance  commissioner  out  of  the  said  insur- 
ance commissioner's  special  fund. 

Enacted  March  8,  1907;  stats.  1907.  p.  141. 

Office. 

§  592.  The  commissioner  must  keep  his  office  in  the  city  of 
San  Francisco. 

Enacted  Marcii  S.  1907;  stats.  1907.  \).  141. 
12— CL. 


266  POLITICAL  CODE.  §  593 

Bond. 

§  593.  The  commissioner  must  execute  an  official  bond  in  the 
sum  of  twenty  thousand  dollars. 

Enacted  March  8,  1907;  stats.  1907,  p.  14L 

Insurance  classified. 

§  594.  All  insurance  business  in  the  State  of  California  is 
hereby  classified  in  the  fourteen  kinds  as  follows : 

First — Life  insurance  business,  including  endowments  and 
annuities,  but  not  including  health  or  accident  or  sickness  insur- 
ance or  any  casualty  insurance  as  hereinafter  provided. 

Second — Fire  insurance,  but  not  including  any  marine  insur- 
ance, nor  any  inland  navigation  insurance,  nor  any  casualty 
insurance  as  hereinafter  provided. 

Third — Marine  insurance,  including  ocean  and  inland  risks, 
transportation  and  automobiles,  but  not  including  any  other 
casualty  insurance  as  hereinafter  provided. 

Fourth — Title  insurance,  including  insuring  owners  of  reai 
or  personal  property,  or  others  interested  therein,  against  loss 
by  encumbrance,  or  defective  titles,  or  adverse  claim  to  title, 
either  together  with  or  without  examination  of  title,  or  furnish- 
ing information  relative  thereto. 

Fifth — Fidelity  and  surety  insurance,  including  the  guaran- 
teeing of  persons  holding  places  of  public  or  private  trust  and 
guaranteeing  the  performance  of  contracts  other  than  insurance 
policies  and  guaranteeing  and  executing  all  bonds,  undertakings 
and  contracts  of  suretyship. 

Sixth — Accident  insurance,  and  either  sickness  or  health 
insurance,  including  insurance  against  injury,  disablement  or 
death  resulting  from  traveling  or  general  accident,  and  against 
disablement  resulting  from  sickness,  and  every  iiisui-ance  apper- 
taining thereto. 

Seventh — Plate  glass  insurance,  including  all  iusui-ance 
against  breakage  of  glass,  whether  local  or  in  transit. 

Eighth — Liability  insurance,  including  all  insurance  against 
loss  or  damage  resulting  from  accident  to  or  injury,  fatal  or 
non-fatal,  suffered  by  an  employee  or  other  person  for  and 
which  the  insured  is  liable. 

Ninth — Boiler  and  machinery  insurance,  including  insurance 
upon  steam  boiler,  and  upon  pipes,  engines,  and  machinery  con- 
nected therewith  and  operated  thereby,  against  explosion  and 
accident,  and  against  loss  or  damage  to  life,  person  or  property, 
resulting  therefrom. 


§  594  POLITICAL  conE.  2G7 

Toith — RiirgliiiT  insurance,  incliiding;  insuninco  against  loss 
l)y  burglary,  house  breaking  or  theft. 

I'Jleveiith — Credit  insurance,  including  insurance  or  guarantee 
either  by  agreement  to  purchase  uncollectible  debts  or  otherwise, 
to  insure  against  loss  or  damage  from  the  failure  of  i)ersons 
indebted  or  to  become  indebted  to  the  insured  or  to  meet  existing 
or  contemplated  liabilities. 

Twelfth — Sprinkler  insurance,  including  insurance  against 
loss  or  damage  by  water  to  any  goods  or  premises  arising  from 
the  breakage  or  leakage  of  sprinklers  or  water  pipes. 

Thirteenth — Team  and  vehicle  insurance  including  insurance 
against  loss  or  legal  liability  for  loss  because  of  damage  to 
property  caused  by  the  use  of  teams  or  vehicles  whether  by 
accident  or  collision  or  by  explosion  of  any  engine  or  tank  or 
boiler  or  pipe  or  tire  of  any  vehicle  and  also  including  insurance 
against  theft  of  the  whole  or  any  part  of  any  vehicle ;  the  term 
vehicle  as  here  used  includes  elevators  and  automobiles  and 
bicycles  but  does  not  include  ships  nor  vessels  nor  boats  nor  any 
railroad  rolling  stock. 

Fourteenth — Miscellaneous  insurance,  including  any  and  all 
casualty  insurance  not  included  under  any  of  the  foregoing 
thirteen  kinds,  and  which  is  a  proper  subject  of  insurance. 

No  company  having  a  capital  stock  shall  do  in  California  any 
of  said  first  kind  of  insurance  without  having  a  capital  stock  of 
at  least  .$200,00(>.0()  nor  shall  any  such  company  do  in  California 
any  other  of  said  kinds  of  insurance  except  the  sixth  and  eighth  ; 
provided,  that  any  such  insurance  company  desiring  to  do  the 
kind  of  insurance  embraced  within  either  the  sixth  or  eighth 
kind  must  have  in  addition  to  such  .$200,000.00  of  capital  stock, 
at  least  .$50,000.00  of  capital  stock  and  do  the  kind  of  insurance 
embraced  within  both  the  sixth  and  eighth  kinds  at  least  the  sum 
of  $100,000.00  capital  stock  in  addition  to  the  said  $200,000.00 
of  capital  stock  required  to  do  the  first  kind  of  insurance. 

No  company  having  a  capital  stock  .shall  do  in  California  any 
of  said  second  kind  of  insurance  without  having  a  capital  stock 
of  at  least  $200,000.00  nor  shall  such  company  do  in  California 
any  other  of  such  kinds  of  insurance  except  the  third  and 
thirteenth  nor  do  the  third  without  having  in  addition  to  such 
$200,000.00  capital  stock  at  least  $200,000.00  capital  stock  for 
such  third  kind  of  insui-ance,  nor  do  any  of  the  thirteenth  with- 
out having  in  addition  to  such  $200,000.00  capital  stock  for  the 
second,    nor   do    any    of    the    thirteenth    other    than    automobile 


268  I'OLITICAL  CODE.  §  594 

insurnace  williout  having  in  atldition  to  such  $400,000.00  capital 
stock  for  tlie  second  and  third  at  least  .$50,000.00  cajiilal  stock 
for  such  thirteenth  kind  of  insurance. 

No  company  having  a  capital  stock  shall  do  in  California  any 
of  said  third  kind  of  insurance  without  having  a  capital  stock  of 
at  least  $200,000.00  nor  shall  any  such  company  do  in  California 
any  other  of  said  kinds  of  insurance  except  the  second  and 
thirteenth  nor  do  the  second  without  having  in  addition  to  such 
$200,000.00  capital  stock  at  least  $200,000.00  capital  stock  for 
such  second  kind  of  insurance  nor  do  any  of  the  thirteenth  other 
than  automobile  insurance  without  having  in  addition  to  such 
$200,000.00  capital  stock  for  the  third  or  in  addition  to  such 
.$400,000.00  capital  stock  for  the  second  and  third  at  least 
$50,000.00  capital  stock  for  such  thirteenth  kind  of  insurance. 

No  company  having  a  capital  stock  shall  do  in  California  any 
of  the  fourth  or  fifth  or  sixth  or  seventh  or  eighth  or  ninth  or 
tenth  or  eleventh  or  twelfth  or  thirteenth  or  fourteenth  of  said 
kinds  of  insurance  without  having  a  capital  stock  of  at  least 
$100,000.00  nor  shall  any  such  company  do  in  California  any 
other  of  said  fourth  or  fifth  or  sixth  or  seventh  or  eighth  or  ninth 
or  tenth  or  eleventh  or  twelfth  or  thirteenth  or  fourteenth  kinds  of 
insurance  without  having  in  addition  to  such  $100,000.00  capital 
stock  at  least  $.50,000.00  capital  stock  for  each  additional  kind 
i)f  insurance.  No  company  having  a  capital  stock  of  at  least 
$200,000.00,  and  authorized  to  do  in  California  the  thirteenth 
kind  of  insurance  shall  therein  do  the  first  or  second  or  third 
kind  of  insurance,  and  must  in  addition  to  such  capital  stock  of 
at  least  $200,000.00,  have  $50,000.00  of  capital  stock  for  each 
kind  of  insurance  it  may  do  therein  other  than  the  said 
thirteenth  kind. 

Such  capital  stock  required  must  be  fully  paid  up  before  the 
doing  of  any  such  business  in  the  State  of  California  except 
that  companies  incorporated  under  the  laws  of  California  must 
have  at  least  twenty-five  per  cent  of  their  capital  stock  paid  in 
previous  to  the  issuance  of  any  policies  and  the  residue  within 
twelve  months  of  the  filing  of  the  certificate  of  incorporation. 

The  capital  stock  required  must  be  exclusive  of  all  liabilities 
for  losses  reported,  expenses,  taxes  and  re-insurance  of  all  out- 
standing risks,  as  provided  in  sections  002  and  002^  of  the 
Political  Code. 

Every  company  organized  or  formed  under  the  laws  of  any 
other  state  or  country  as  a  mutual  or  as  a  joint  stock  and  mu- 
tual company  having  a  capital  stock  of  not  less  than  $100,000.00 


§  594  POLITICAL    CODE.  269 

must  luivc  ill  lieu  of  such  capital  stock  availaide  cash  assets 
of  at  least  .$200,000.00  above  all  liabilities  for  losses  reporfed, 
exi)euses.  taxes,  and  re-insurance  of  all  outstanding-  risks  as 
provided  in  sections  002  and  G02ff  of  the  Political  Code. 

Amended  April  If.,  1909:  stats.  1909,  p.  928:  in  effect  in 
sixt}-  days. 

Ed.  Note. — §  594.  Section  2  of  the  act  amending  this  section 
reads  as  follows : 

Sec.  2.  Tlie  pi-ovi.sions  of  this  act  sliall  not  apply  to  life  or 
fire  insurance  associations  operating  on  tlie  as.sessment  plan  or  r)n 
tlie  fraternal  plan. 

Foreign    companies,    deposit   of   securities. 

S  594((.  No  insurance  company  organized  or  existing  under 
the  laws  of  any  country  outside  of  the  United  States  .shall 
transact  any  business  of  insurance  in  the  State  of  California 
without  first  making  deposit,  and  thereafter  continuously  main- 
taining such  deposit  except  as  hereinafter  otherwise  specially 
provided,  so  long  as  any  such  business  transacted  in  this  state 
remains  in  existence  for  any  purpose  whatever,  either  unmatured 
or  matured  but  unsettled,  and  whether  in  controvei\sy  or  not. 
Such  deposit  must  be  of  securities  which  the  law  of  California 
permits  for  the  investment  of  the  assets  of  such  California 
insurance  companies.  wSuch  deposits  may  be  with  the  insurance 
commissioner  or  superintendent  of  insurance,  or  with  the  auditor, 
comptroller  or  general  fiscal  officer  of  any  state  in  the  United 
States  in  which  said  foreign  company  is  authorized  to  do  such 
insurance  business,  or  a  like  amount  held  in  trust  for  the  pur- 
poses herein  specified  as  provided  for  by  the  laws  of  that  state. 

The  amount  of  the  deposit  must  be  equal  to  the  minimum 
amount  of  the  capital  stock  or  available  cash  assets  required  by 
the  preceding  section  and  must  be  maintained  exclusive  of  all 
liabilities  for  losses  reported,  expenses,  taxes  and  reinsurance  of 
all  outstanding  risks,  as  provided  in  sections  (502  and  G02«  of  the 
Political  Code.  Such  deposits,  for  all  purposes  of  the  insurance 
laws  of  this  state  may  be  treated  as  a  part  of  the  capital  of  the 
company  making  it. 

If  such  deposit  is  not  so  maintained  in  the  State  of  California, 
its  existence  in  some  other  state  of  the  United  States  shall  be 
certified  at  least  annually  to  the  insurance  commissioner  of  the 
S(ate  of  California  by  the  superintendent  of  insurance  or  com- 
missioner  of    insurance    or    auditor,    or   comptroller,    or   general 


270  POLITICAL  CODE.  §  594a 

lisenl  odicer  of  the  stnfo  in  (he  Uniled  States  wherein  such 
deposit  is  so  uuiiutained,  and  also  so  certified  ofteuer  and  when- 
ever from  time  to  time  reqnired  by  the  insnrance  commissioner 
of  the  State  of  California,  and  such  ceitifieate  shall  show  in 
detail  of  what  such  deposit  consists. 

None  of  such  securities  so  deposited  shall  be  estimated  above 
the  par  value  of  the  same  nor  above  the  market  value.  Such 
deposits  must  be  for  the  benefit  and  security  of  all  the  policy 
holders  of  the  company  in  the  United  States.  Such  securities 
so  deposited  with  the  insurance  commissioner  of  the  State  of 
California  shall  be  by  him  specially  deposited  iu  the  state  treas- 
ury in  packages  marked  with  the  name  of  the  company  from 
\\'hom  received,  and  so  long  as  the  company  continues  solvent  it 
shall  be  permitted  to  collect  the  interest  or  dividends  on  the 
securities  so  deposited,  and  from  time  to  time  to  withdraw  such 
securities  on  depositing  other  securities  in  the  stead  of  those  to 
be  withdrawn,  such  new  securities  to  be  of  the  character  and 
value  specified  in  this  section,  but  none  of  such  securities  shall 
be  withdrawn  from  the  state  treasury  except  upon  the  written 
order  of  the  company  making  the  deposit,  which  order  must  be 
indorsed  by  the  insurance  commissioner  of  the  State  of  Cali- 
fornia or  else  such  withdrawal  must  be  had  under  the  authority 
of  some  court  of  competent  jurisdiction,  which  must  be  obtained 
if  the  insurance  commissioner  for  any  reason  refuses  to  so 
indorse  said  order.  Whenever  such  deposit  has  been  made  with 
the  insurance  commissioner  of  the  State  of  California  as  pro- 
vided in  this  section,  said  commissioner  must  issue  to  the  com- 
pany so  depositing,  a  certificate  under  his  official  seal  stating  the 
items  and  amount  of  securities  so  deposited,  and  their  value,  to 
the  best  of  his  knowledge,  information  and  belief,  and  in  case  of 
withdrawal  and  substitution,  he  shall  issue  suitable  supple- 
mental similar  certificate.  None  of  the  provisions  of  this  section 
shall  affect  the  present  statutes  of  California,  either  as  to  regis- 
tered policies,  or  under  what  is  known  as  the  retaliatory  law.  or 
otherwise,  either  as  to  papers,  bonds,  or  other  securities. 

Amended  April  15,  190D:  stats.  1909,  p.  910;  in  effect  in 
sixty  days. 

General  duties  of  commissioner — Companies  may  surrender  cer- 
tificate; manner  of. 
§  595.     The   insurance    commissioner   must    receive   all    bonds 
and  securities  of  persons  engaged  in   the  transaction  of   insur- 


§  595  POLITICAL    CODE.  271 

ance  business  in  this  state,  and  file  and  safely  keep  the  same 
in  his  office,  or  deposit  them  as  provided  by  law.  He  must 
examine  and  inspect  the  financial  condition  of  everj-  company 
engaged,  or  which  desires  to  engage  iu  the  business  of  insur- 
ance and  issue  a  certificate  of  authority  to  transact  insurance 
business  in  this  state  to  any  company  iu  a  solvent  condition 
which  has  fully  complied  with  the  laws  of  this  state.  He 
must  determine  the  sufficiency  and  validity  of  all  bonds  and 
other  securities  required  to  be  given  by  persons  engaged,  or 
to  be  engaged,  in  insurance  business,  and  cause  the  same  to 
be  renewed  in  case  of  the  insufficiency  or  invalidity  thereof ; 
and  perform  all  other  duties  imposed  upon  him  by  the  laws 
regulating  the  business  of  insurance  in  this  state,  and  enforce 
the  execution  of  such  laws.  He  must  make,  on  or  before  the 
first  day  of  August  in  each  year,  a  report  to  the  governor  of 
the  state,  containing  a  tabular  statement  and  synopsis  of  the 
reports  which  have  been  filed  in  his  office,  showing,  generally, 
the  condition  of  the  insurance  business  and  interests  in  this 
state,  and  other  matters  concerning  insurance,  and  a  detailed 
verified  statement  of  the  moneys  and  fees  of  office  received  by 
him,  and  for  Avhat  purpose,  and  the  printing  of  said  report 
and  all  other  printing  required  by  the  insurance  department 
shall  be  exempt  from  the  provisions  of  article  XII,  chai)ter 
III,  title  I,  part  III  of  the  Political  Code.  Any  insurance 
company  may  pay  the  fees  and  costs  therefor  and  may  sur- 
render to  the  insurance  commissioner  its  certificate  of  authority 
previously  gi-anted,  and  apply  to  withdraw  from  this  state, 
such  application  to  be  in  the  form  of  a  written  instrument,  duly 
executed,  and  accompanied  with  evidence  of  due  authority  for 
such  execution,  and  such  written  instrument  to  be  properly 
acknowledged.  The  commissioner,  at  the  expense  of  the  com- 
liany,  paid  by  it  in  advance,  must  make  duo  pul)lication  of  such 
ai)i)lication  for  withdrawal,  daily,  for  the  period  of  one  week, 
in  each  of  two  daily  newspapers  of  general  circulation,  the 
one  published  in  the  city  of  San  Francisco,  and  the  other  in 
the  city  of  Sacramento.  The  commissioner  must  make  such 
examination  of  the  books  of  such  company  as  may  be  necessary 
to  ascertain  that  such  company  has  no  liabilities  outstanding 
and  not  paid  to  residents  of  this  state  and  no  uncanceled 
policies  in  favor  of  residents  of  this  slate  and  if  lie  finds  (hat 
such  company  has  no  oulslanding  liabilities  to  residents  of  this 


272  POLITICAL  CODE.  §  595 

state  and  no  uncanceled  policies  in  favor  of  the  residents  of 
this  state,  he  shall  cancel  such  certificate  of  authority.  All 
such  examinations  must  be  at  the  expense  of  the  company,  and 
such  expense  must  be  paid  in  advance. 

Enacted  March  8,  1007;  stats.  1907,  p.  145. 
VII   Cal.  App.   Doc.  2.  3. 

Certificate  to  do  business — Licenses  to  procure  insurance  in  com- 
panies not  autliorized  to  do  business — Affidavit  required — 
Account  of  business — Bond  of  licensee — Examination  of 
policies  issued  by  licensee. 
§  596.  No  company  shall  transact  any  iusuiuncc  business  in 
this  state  without  first  complying  with  all  the  provisions  of 
the  laws  of  this  state  and  thereafter  procuring  from  the  insur- 
ancQ  commissioner  a  certificate  of  authority  and  continuing 
to  comply  with  the  laws  of  this  state ;  provided,  that  insurance 
in  companies  not  authorized  to  transact  business  in  this  state 
may  be  placed  upon  the  terms  and  conditions  in  this  section 
hereafter  set  forth.  Such  certificate  of  authority  shall  expire 
on  the  first  day  of  July  after  it  is  issued  unless  sooner  revoked, 
and  must  be  renewed  annually.  No  certificate  of  authority 
shall  be  granted  or  renewed  to  any  company  in  arrears  to  the 
state,  or  to  any  county  or  city  of  the  state,  for  fees,  licenses, 
taxes,  assessments,  fines  or  penalties  accrued  upon  business 
previously  transacted  in  the  state  nor  while  the  company  is 
otherwise  in  default  for  failure  to  comply  with  any  of  the  laws 
of  this  state  regarding  the  government  and  control  by  the  state, 
of  such  company,  and  all  such  authorizations  and  certificates 
of  authority  heretofore  granted  shall  expire  on  July  1st,  1907. 
Tlie  insurance  commissioner  may  issue  a  license  to  any  citizen 
of  this  state,  subject  to  revocation  at  any  time,  permitting 
the  person  named  therein  to  procure  policies  of  insurance  on 
risks  located  in  this  state  for  companies  not  authorized  to 
transact  business  in  this  state,  and  for  such  license  the  insur- 
ance commissioner  shall  collect  a  fee  of  fifty  dollars  for  each 
such  license  and  renewal  thereof  and  each  such  license  and 
renewal  shall  expire  on  the  first  day  of  July  unless  sooner 
revoked.  Before  the  person  named  in  such  license  shall  procure 
any  insurance  in  such  company  he  shall  in  every  case  execute 
and  file  with  the  insurance  connnissioncr  an  adidnvil  that  he 
is  unable  to  i)ro(nire,  for  a  siiecified  i)erson.  lirni  or  cdrpora- 
tion.   ill  a   majority  of  the  companies  authorized  to  do  business 


§  59(i  POLITICAI.   CODK.  -  27H 

iu  this  state  the  amount  of  insurance  necessary-  Every  per- 
son so  licensed  shall  keep  a  separate  account  of  the  business 
done  under  said  license,  open  at  all  times  to  the  inspection 
of  the  insurance  commissioner,  and  shall  file  a  certified  copy 
thereof  forthwith  with  the  insurance  commissioner,  showius 
the  exact  amount  and  character  of  such  insurance  placed  fur 
any  person,  firm,  or  corporation,  tiie  gross  premiums  charged 
I  hereon,  the  companies  in  which  the  same  is  ])Iaced,  the  dates 
(if  I  lie  'policies  lUid  the  lerms  llun-eof,  the  locatidii  of  lh(> 
insured  projjerty  ;iiid  also  a  repoii  in  the  saun'  detail  of  all  sucH 
policies  canc<>le(l  .-nid  the  uross  return  tluTcon.  liefore  nct'iv- 
ins'  such  lieense  tlie  person  lieeused  shall  execute  and  drlhcr 
to  the  insui'anee  commissioner  a  liond  to  the  people  of  (he 
i^late  of  California  in  the  penal  sum  of  twenty  thousand  dollars, 
with  such  sureties  as  the  commissioner  shall  approve,  con- 
ditioned that  the  licensee  will  faithfully  comply  with  all  the 
requirements  of  this  section,  and  will  file  wdth  the  insurance 
commissioner  on  or  before  the  first  day  of  March  of  each  year, 
a  sworn  statement  of  the  gross  premiums  charged  for  insui'- 
anee procured  or  placed,  and  the  gross  return  premiums  on 
such  insurance  canceled  under  such  license  during  the  year 
ending  on  the  thirty-first  day  of  December  last  preceding,  and 
will  pay  to  the  insurance  commissioner  of  the  State  of  Cali- 
fornia, for  the  use  and  benefit  of  said  state,  an  amount  equal  to 
four  per  cent  of  such  gross  premiums  less  such  return  pre- 
n\iums  so  reported,  and  iu  default  of  the  payment  of  any  sum 
im])Osed  by  this  section,  the  said  insurance  commissioner  may 
sue  for  same  in  any  court  of  record  in  this  state.  .Vny  per- 
son, firm,  company  or  corporation  for  whom  such  insurance 
as  herein  specified  shall  have  been  effected,  whenever  required 
)iy  the  insurance  commissioner  so  to  do.  shall  produce  for 
examination  by  him  the  policy  or  policies  issued  for  such  insur- 
ance, and  disclose  to  him  the  true  amount  of  the  gross  pre- 
miums agreed  to  be  paid  therefor,  and  upon  refusal  so  to  do 
shall  forfeit  to  the  State  of  California  for  each  such  refusal 
the  sum  of  two  hundred  dollars,  to  be  recovered  in  a  civil 
action.  All  policies  and  insurance  contracts  issued  without 
full  compliance,  by  all  parties  concerned,  with  the  laws  of  this 
state  are  null  and  void. 

Enacted  March  8,  1907:  stats.  1907.  p.  140. 

YII  Cal.  App.  Dec.  3. 
See,  also.  Pen.  C.  §  4.39. 


274  -  POI.TTTCAT.  CODE.  §  HOfiff 

Attorney  general  to  examine  documents. 

§  596a.  IScfure  the  insurauce  commissioner  Issues  any  cer- 
lificate  of  authority  or  any  other  certificate  or  gives  any  per- 
mission or  authority  of  any  kind,  based  upon  any  written 
instrument  or  document  or  certified  copy  thereof,  required  by 
the  statutes  of  the  State  of  California,  the  commissioner  shall 
submit  such  instrument,  document  or  certified  copy  to  the 
attorney  general  of  the  State  of  California,  who  shall  examine 
the  same  and  return  it  to  the  commissioner  with  his  ct>rtifieate 
or  opinion  as  to  whether  such  instrument,  document  or  certi- 
fied copy  is  in  accordance  with  the  requirements  of  law.  and 
such  certificate  or  opinion  of  the  attorney  general  shall  govern 
and  control  the  commissioner,  subject  only  to  review  by  a 
court  of  competent  jurisdiction ;  provided,  that  neither  the 
authority  to  nor  bond  of  an  agent  or  solicitor,  nor  the  annual 
statements  as  to  the  condition  and  affairs  -need,  but  may,  be 
so  submitted  (with  the  same  effect)  by  the  commissioner  to 
the  attorney  general. 

Enacted  March  8,  1907 ;  stats.  1907,  p.  147. 

Examination  of  companies  alleged  to  be  insolvent — Inspection  of 
books. 
§  597.  The  commissioner,  whenever  he  deems  necessary,  or 
whenever  he  is  requested  by  verified  petition,  signed  by  twenty- 
five  persons  interested,  either  as  stockholders,  i)olicyholders.  or 
creditors  of  any  company  engaged  in  insurance  business  in  this 
state,  showing  that  such  company  is  insolvent  under  the  laws 
of  this  state,  must  make  an  examination  of  the  business  and 
affairs  relating  to  the  insurance  business  of  such  company,  and 
must  make  such  an  examination  whenever  any  company  is  organ- 
ized to  do  insurance  business  in  this  state,  and  before  issuing 
a  certificate  of  authority  other  than  renewals  to  such  company, 
and  may  make  such  examination  whenever  any  company  not 
organized  under  the  laws  of  this  state  applies  for  a  certificate 
to  do  insurance  business  in  this  state,  and  before  issuing  a  cer- 
tificate of  authoi'ity  to  such  company ;  and  for  such  purposes 
shall  have  free  access  to  all  the  books  and  papers  of  such  com- 
pany, and  must  thoroughly  inspect  and  examine  all  its  affairs, 
and  ascertain  its  condition  and  ability  to  fulfill  its  engagements, 
and  that  it  has  complied  with  all  the  provisions  of  law  appli- 
cable to  its  insurance  transactions.  Such  company  must  open 
its  books  and  papers  for  the  inspection  of  the  commissioner,  and 
otherwise  facilitate  such  examination ;  and  the  commissioner  may 


S  HOT  roT.TTic'.vr,  conR.  27n 

administer  oaths  auil  examiuc  uikIcm-  oath  any  person  rekitive 
to  the  business  of  such  company  ;  and  if  lie  finds  the  books  to 
have  been  carelessly  or  improperly  kept  or  posted  he  must 
employ  sworn  experts  to  re-write,  post  and  balance  the  same 
at  the  expense  of  such  company.  Such  examination  must  be 
conducted  in  the  county  where  such  company  has  its  principal 
office,  and  must  be  private,  unless  the  commissioner  deems 
it  necessary  to  publish  the  result  of  such  investigation,  in  which 
case  he  may  publish  the  same  in  two  of  the  public  newspapers 
of  this  state,  one  of  which  must  bo  published  in  the  city  of 
San  Francisco.  Whenever  the  commissioner  shall  deem  such 
examination  necessary,  the  same  must  be  at  the  expense  of  the 
company,  such  expense  to  be  paid  in  advance,  and  if  any  such 
company  refuses  to  pay  such  expenses  in  advance  the  insurance 
commissioner  may  refuse  to  issue  any  such  certificate  of  author- 
ity and  must  revoke  any  existing  certificate  of  authority  author- 
izing such  company  to  do  business. 

Enacted  .Alareh  S,  IDOT  :  stats.  1007.  p.  147. 

Policyholders  may  secure  Information  about  policies — Company 
must  make  statement — Lo.st  policy,  stay  of  rights. 
§  598.  Any  person  interested  in,  as  owner,  assignee,  pledgee 
or  i^ayee,  of  any  policy  of  insurance  and  desiring  any  informa- 
tion about  such  policy,  may  file  with  the  insurance  commissioner 
an  affidavit  showing  that  he  is  entitled  to  the  benefits  of  the 
])rovisions  of  this  section  and  apply  to  the  insurance  commis- 
sioner for  his  certificate  of  the  facts  or  information  desired. 
If  the  records  of  his  office  show  the  facts  or  information  desired, 
the  insurance  commissioner  shall  prepare  his  certificate  reciting 
such  facts  or  information.  If  his  records  do  not  show  the  facts 
or  information  desired  the  insurance  commissioner  may  deliver 
an  order  to  the  agent  of  the  company,  designated  under  sec- 
tion six  hundred  and  sixteen  of  the  Political  Code,  directing 
such  company  to  state  such  information  or  facts  in  an  affidavit 
and  deliver  such  affidavit  to  him.  In  such  affidavit  the  company 
must  make  a  full,  true  and  correct  statement  of  all  the  said 
facts  and  information  in  the  possession  of  said  company,  whether 
such  information  be  contained  in  the  books,  records,  or  papers 
in  this  state  or  in  any  other  state  or  country.  If  such  company 
neglects  or  refuses  to  make  and  deliver  such  affidavit  to  the 
insurance  commissioner  within  ninety  (90)  days  from  the  date 
of  tlie  delivery  of  the  said  order  by  the  commissioner  to  the  said 
agent  as  herein  provided,  the  commissioner  must  revoke  the  cer- 


-76  POLITICAL  CODE.  §  ^98 

tificate  of  authority  authorizing  the  company  to  do  business  in 
this  state.  Immediately  after  receiving  any  affidavit  from  any 
insurance  company  pursuant  to  the  provisions  of  this  section 
the  commissioner  must  certify  such  affidavit  to  the  person  so 
applying  for  the  information  or  facts.  Such  affidavit  so  certi- 
fied by  the  insurance  commissioner  shall  be  delivered  to  the 
applicant  by  delivering  it  to  him  personally  or  by  depositing 
the  same  in  the  United  States  post  office  and  prepaying  the  post- 
age thereon.  If  a  loss  has  been  sustained  under  any  policy  of 
insurance  and  such  policy  has  been  lost  or  destroyed  all  rights 
of  every  kind  and  nature  and  the  time  for  the  presenfation  of 
notice  of  loss  and  the  time  for  the  presentation  of  proof  of  loss 
are  stayed  from  the  date  such  interested  person  delivers  to  the 
commissioner  the  affidavit  herein  provided  for  and  until  five 
days  after  the  date  of  the  delivery  by  the  insurance  commissioner 
to  such  interested  person  of  any  affidavit  furnished  by  any 
insurance  company  pursuant  to  the  provisions  of  this  section. 
Enacted  March  8,  1907;  stats.  1907,  v.  148. 

Subpoena. 

§  599.  The  commissioner  may  issue  subpa?nas  for  witnesses 
lo  attend  and  testify  before  him  on  any  sub,iect  touching  insur- 
ance business,  or  in  aid  of  his  duties,  which  may  be  served, 
obeyed,  and  enforced  as  provided  in  the  Code  of  Civil  Pro- 
cedure for  civil  cases,  and  the  commissioner  may  issue  attach- 
ments and  impose  the  same  penalty  which  a  court  might  impose 
for  disobedience;  and,  in  addition,  the  defaulting  witness  may 
ho  punished  as  provided  in  the  Penal  Code. 

Enacted  March  8,  1907;  stats.  1907,  p.  349. 

Records  of  commission. 

§  600.  The  commissioner  must  keep  and  preserve  in  a  per- 
manent form  a  full  record  of  his  proceedings,  including  a 
concise  statement  of  the  condition  of  each  company  visited  or 
examined  by  him. 

Enacted  March  8,  1907  ;  stats.  1907,  p.  149. 

Restoration  of  authority  after  revocation.     [Repealed.] 

§  600f/.  Restoration  of  authority  after  revocation.  [Repealed 
April  15,  1909;  stats.  1909,  p.  913;  in  effect  in  sixty  days.] 

Ed.  Note. — §  600a.  Section  3  of  the  act  repealing  this  section 
and  enacting  section  603a  reads  as  follows:  "Sec.  3.  Nothing 
herein  contained  shall  affect  any  rights  acquired  under  said  sec- 
tion 600a,  but  all  such  rights  shall  be  preserved  under  the  provi- 
sions of  said  section  603a." 


S  <i01  POLITICAL   CODE.  277 

Employment  of  actuary. 

§  601.  The  commissiouer  may  employ  au  actuary  to  make 
the  valuation  of  life  policies  at  a  compehsation  of  not  exceed- 
ing one  cent  for  each  thousand  dollars  of  insurance,  to  be  paid 
by  the  company  for  which  the  valuation  is  made. 

Enacted  March  8,  1907 ;  stats.  1007,  p.  149. 

What  constitutes  insolveticy. 

§  602.  AVhonever  provisions  for  the  linbilitios  of  any  com- 
jiany  cugaged  in  the  business  of  fire,  marine,  or  inland  naviga- 
lion  insuran('(>  in  this  stale,  for  losses  rt'ixirted,  expenses,  (axes 
and  reinsurance  of  all  ouls(an<ling  risks,  estimated  at  lifty  per 
cent  of  the  premiums  received  and  receivable  on  all  fire  risks 
and  marine  time  risks,  at  th(>  full  premiums  received  and 
receivable  on  all  other  marine  risks,  would  so  far  impair  its 
capital  paid  in  as  to  reduce  the  same  below  two  hundred  thou- 
sand dollars,  or  below  seventy  five  per  cent  of  said  capital 
paid  in,  such  company  is  insolvent ;  and  in  case  of  a  company 
engaged  in  such  insurance  in  this  state,  on  the  mutual  plan, 
if  the  available^ cash  assets  of  such  company  shall  not  exceed 
its  liabilities,  as  hereinbefore  enumerated,  in  the  full  sum  of 
two  hundred  thousand  dollars,  such  company  is  insolvent ;  and 
wherever  provision  for  the  liabili'ties  of  any  company  engaged 
in  the  business  of  insuring  any  one  against  loss  or  damage 
resulting  from  accident  to  or  injury  suffered  by  an  employee 
or  other  person  for  which  the  person  insured  may  be  liable, 
foi'  losses  reported,  expenses,  taxes,  and  reinsurance  of  all  out- 
slanding  risks  estimated  as  provided  in'section  six  hundred  and 
two  a  of  the  Political  Code  would  so  far  impair  its  capital  paid 
in  as  to  reduce  the  same  below  one  hundred  thousand  dollars, 
or  below  seventy-five  per  cent  of  said  capital  paid  in,  such 
company  is  insolvent ;  and  whenever  provision  for  the  liabilities 
of  any  company  engaged  in  any  kind  of  insurance  business  in 
this  state,  other  than  life,  liability,  and  insurance  of  titles  to 
real  estate,  provided  for  in  section  five  hundred  and  ninety-four 
of  the  Political  Code  of  this  state,  for  losses  reported,  expenses, 
taxes,  and  reinsurance  of  all  outstanding  risks,  estimated  at 
such  rates  as  are  accepted  by  the  insurance  authorities  of  the 
state  of  New  York,  would  so  far  impair  its  capital  paid  in 
as  to  I'educe  the  same  below  one  hundred  thousand  dollars,  or 
below  seventy-five  per  cent  of  said  capital  stock  paid  in,  such 
company  is  insolvent ;  and  in  case  of  a  company  engaged  in  such 


27.S  rOT.TTIOAT.   CODE.  §  002 

insurnncc  Imsiucss  in  (his  state,  on  the  unitual  iilaii.  if  its  nvail- 
iihle  cash  assets  shall  uot  exceed  its  liabilities,  as  hereinbefore 
enumerated,  in  the  full  sum  of  one  hundred  thousand  dollars, 
such  company  is  insolvent.  In  the  case  of  a  company  engaged 
in  the  business  of  life  insurance,  whenever  its  liabilities  for 
losses  reported,  exi)enses,  taxes,  and  reinsurance  of  all  its  out- 
standing risks  written  prior  to  January  1st,  eighteen  hundred  and 
ninety-two,  at  the  rates  based  upon  the  American  experience 
I  able  of  mortality  with  interest  at  the  rate  of  four  and  one  half 
per  cent  per  annum,  and  reinsurance  of  all  its  outstanding  risks 
written  from  and  afler  the  thirty-first  day  of  December,  eighteen 
hundred  and  ninety-one,  up  to  and  including  the  thirty-first  day 
of  December,  nineteen  hundred  and  seven,  at  rates  based  upon 
the  combined  experience  or  actuaries  table  of  mortality  with 
interest  at  the  rate  of  four  per  cent  per  annum,  and  reinsurance 
of  all  its  outstanding  risks  written  from  and  after  December 
thirty-first,  nineteen  hundred  and  seven,  at  rates  based  upon  the 
American  experience  table  of  mortality  with  interest  at  the  rate 
of  three  and  one  half  per  cent  per  annum,  exceeds  its  assets 
such  company  is  insolvent.  In  the  case  of  a  company  engaged 
in  the  business  of  insurance  of  the  title  to  real  estate,  when- 
ever provision  for  its  liability  for  losses  reported,  expenses, 
and  taxes,  would,  after  exhausting  its  surplus  fuud  required 
l)y  section  four  hundred  and  thirty-two  of  the  Civil  Code,  or 
otherwise,  so  far  impair  its  capital  stock  paid  in  as  to  reduce 
the  same  below  one  hundred  thousand  dollars,  or  below  seventy- 
live  per  cent  of  said  capital  paid  in,  sucli  company  is  insolvent. 

The  provisions  of  this  act  shall  not  apply  to  life  or  fire 
insurance  associations  operating  on  the  assessment  plan  or  on 
the  fraternal  plan. 

Amended  April  1.^),  1900;  stats.  1009,  p.  915;  in  effect  in  sixty 
days. 

How  condition  of  company  shall  be  estimated — How  reserve  to 
be  computed. 
§  602(/.  In  estimating  the  condition  of  any  company  engaged 
in  the  business  of  liability  insurance  under  the  provisions  of 
this  article  the  insurance  commissioner  shall  charge  as  liabili- 
ties all  outstanding  indebtedness  of  such  company,  and  the  pre- 
mium reserve  on  policies  in  force,  equal  to  the  unearned  portions 
of  the  gross  premiums  charged  for  covering  risks,  computed  on 
each  respective  risk  from  the  date  of  the  issuance  of  the  policy. 
There   shall    also   be    charged   as   a   liability   to    each    company 


§  r>02rt  rOLTTTCAT,   fODE.  270 

ongagod  iu  the  busiuess  of  iusurins  any  one  against  loss  or 
damage  resulting  from  accident  to  or  injury  suffered  by  an 
employee  or  other  person  for  which  the  person  insured  may  be 
liable,  whether  a  natural  person,  a  firm  or  a  corporation  organ- 
ized under  the  laws  of  this  or  any  other  state  or  country,  a 
further  reserve  as  hereinafter  provided.  For  the  purpose  of  com- 
puting said  reserve,  each  company  which  has  been  engaged  in 
liability  underwriting  for  ten  years  or  more,  shall,  on  or  before 
the  first  day  of  Octolier  in  each  year,  state  in  writing  to  tin' 
insurance  commissioner  its  experience  in  the  United  States, 
under  all  forms  of  liability  policies,  each  year  separately  accord- 
ing to  the  calendar  years  in  which  the  policies  were  written, 
during  a  period  of  five  years  commencing  ten  years  previous  to 
the  thirty-first  day  of  December  of  the  year  in  which  the  state- 
ment is  made,  in  the  following  particulars,  namely  :  The  number 
of  persons  reported  injured  under  all  of  the  forms  of  liability 
policies,  whether  such  injuries  were  reported  to  the  home  office  of 
the  given  person  or  to  any  of  his  representatives ;  the  amount  of 
all  payments  made  on  account  or  in  consequence  of  injuries 
reported  under  such  policies ;  the  number  and  amount,  sepa- 
rately, of  all  suits  or  actions  against  policyholders  under  such 
policies  which  have  been  settled,  either  by  payment  or  com- 
promise ;  both  of  the  above  amounts  to  be  ascertained  as  of 
date  of  the  thirty-first  day  of  August  of  the  year  in  which  the 
statement  is  made,  and  to  include  in  the  case  of  suits  all  pay- 
ments made  on  account  or  in  consequence  of  the  injury  from 
which  tlie  suit  arose,  whether  prior  to  or  later  than  the  date 
at  which  the  suit  was  brought.  Each  person  shall  thereupon 
reserve  upon  all  said  kind  of  policies,  irrespective  of  the  date 
at  which  the  policies  were  issued,  (1)  for  each  suit  or  action 
pending,  on  injuries  reported  prior  to  eighteen  months  previous 
to  the  date  of  making  the  statement,  whether  such  injuries  were 
reported  to  the  home  office  of  the  given  company  or  to  any  of  its 
representatives,  and  which  is  being  defended  for  or  on  account 
of  the  holder  of  any  such  policy,  the  average  cost  thereof  as 
shown  by  said  experience,  and  (2)  for  injuries  reported  under 
such  policies  at  any  time  within  eighteen  months,  whether  such 
injuries  were  reported  to  the  home  office  of  the  given  person 
or  to  any  of  his  representatives,  the  average  cost  for  each 
injured  person  as  shown  by  said  experience.  From  the  sum  so 
ascertained  the  person  may  deduct  (1)  the  amount  of  all  pay- 
ments on  said  pending  suits  or  injuries  reported  prior  to  eighteen 


280  POLITICAI,   CODE.  §  602o 

months,  iucluding  all  payments  made  on  account  or  in  conse- 
quence of  the  injury  from  which  the  suit  arose,  whether  prior 
to  or  later  than  the  date  at  which  the  suit  was  brought,  and 
(2)  the  amount  of  all  payments  made  on  account  or  in  con- 
sequence of  said  injuries  reported  within  eighteen  months;  both 
of  the  above  amounts  to  be  taken  as  of  the  date  at  which  the 
statement  is  made.  Any  person  who  now  issues,  or  shall  here- 
after issue,  liability  policies  as  aforesaid,  and  who  shall  not  be 
engaged  in  liability  underwriting  for  ten  years,  shall  neverthe- 
less, until  such  times  as  he  may  be  al)le  to  stale  his  e.\perience 
of  the  period  hereiul)efore  required,  make  and  maintain  a  i"eserve 
ui)on  all  said  kind  of  policies,  irrespective  of  the  date  at  which 
the  policies  were  issued,  determined  as  follows:  (1)  For  each 
suit  or  action  pending,  on  injuries  reported  prior  to  eighteen 
mouths  previous  to  the  date  of  making  the  statement,  whether 
such  injuries  were  reported  to  the  home  office  of  the  given  com- 
pany or  to  any  of  his  representatives,  and  which  is  being 
defended  for  or  on  account  of  the  holder  of  any  such  policy,  the 
average  cost  thereof  as  shown  by  the  average  of  said  experience 
of  all  other  persons  stated  as  required  by  this  section,  and  (2) 
for  injuries  reported  under  such  policies  at  any  time  ^within 
eighteen  months,  whether  such  injuries  were  reported  to  the 
home  office  of  the  given  person  or  to  any  of  his  representatives, 
the  average  cost  for  each  injured  person  as  shown  by  the  aver- 
age of  said  experience  of  all  other  companies  stated  as  required 
Ijy  this  section  ;  which  average  costs  for  suits  and  for  injured 
persons  shall  be  furnished  by  the  insurance  commissionei-  to 
each  such  company  on  or  before  the  first  day  of  December,  in 
each  year.  From  the  sum  so  ascertained  each  company  may 
deduct  (1)  the  amount  of  all  payment  on  said  pending  suits 
on  injuries  reported  prior  to  eighteen  months,  including  all 
payments  made  on  account  or  in  consequence  of  the  injury  from 
which  the  suit  arose,  whether  prior  to  or  later  than  the  date 
at  which  the  suit  was  brought,  and  (2)  the  amount  of  all 
payments  made  on  account  or  in  consequence  of  said  injuries 
reported  within  eighteen  months ;  both  of  the  above  amounts 
to  be  taken  as  of  the  date  at  which  the  statement  is  made. 
Enacted  March  8,  1907 ;  stats.  1907,  p.  151. 

Insolvent  companies,   notice  of  revocation  of  certificate. 

§  603.  Whenever  the  commissioner  ascertains  that  any  com- 
pany engaged  in  the  insurance  business  is  insolvent  within  the 
meaning  of  this  chapter,  he  must  revoke  the  certificate  of  an- 


§  603  POLITICAL    CODE.  281 

thority  granted,  and  send  by  mail  to  such  company,  addressed  to 
it  at  its  principal  place  of  business,  or  deliver  to  it,  a  notice  of 
such  revocation  and  cause  a  copy  of  such  notice  together  with 
the  proof  of  service  to  be  filed  in  his  office. 
Enacted  INIarch  8,  1907 ;  stats.  1907,  p.  152. 

Restoration  of  authority  after  revocation. 

§  603(/.  If  any  insurance  company  (whose  certificate  of  au- 
thority has  been  revoked  by  the  insurance  commissioner  on  the 
ground  that  such  company  is  insolvent)  within  ninety  days  after 
the  receipt  of  the  notice  of  revocation,  shall  rei^air  its  capital  to 
such  an  extent  that  such  company  is  solvent  within  the  provi- 
sions of  section  six  hundred  and  two  (602)  of  the  Political  Code, 
then  upon  such  fact  being  made  to  appear  to  the  insurance  com- 
missioner, he  may  issue  a  new  certificate  of  authority  in  the 
same  manner  and  to  the  same  effect  as  an  original  certificate  of 
authority. 

New  section  :  added  April  1.5,  1909 ;  stats.  1909,  p.  91.3 ;  in 
effect  in  sixty  days. 

Note. — §  603a.     See  note  to  §  600«. 

Report  to  attorney  general. 

§  604.  When  the  insurance  commissioner  ascertains  that  any 
insurance  corporation  organized  under  the  laws  of  this  state  is 
insolvent  he  must  certify  such  fact  to  the  attorney  general. 
Upon  receipt  of  such  certificate  so  made  by  the  insurance  com- 
missioner, the  attorney  general  must  commence  an  action  against 
such  company  under  the  provisions  of  chapter  Y.  title  X,  part  II 
of  the  Code  of  Civil  Procedure.  If  on  the  trial  of  any  such 
action  it  appears  to  the  court  that  such  company  is  insolvent, 
before  causing  judgment  to  be  entered,  the  court  may  direct  the 
corjioration  and  the  officers  thereof  to  levy  an  assessment  on  the 
capital  stock  sufficient  to  enable  the  defendant  corporation  to  pay 
its  debts  and  in  such  order  shall  give  full  directions  as  to  the 
manner  of  lev.\ing  such  assessment  and  the  amount  thereof,  and 
such  assessment  must  be  levied  before  judgment  is  entered.  In 
all  other  respects  the  relief  awarded  against  the  defendant  com- 
pany shall  be  the  same  as  provided  in  said  chapter  five  of  the 
Codi;  of  Civil  Procedure.  Any  receiver  thereafter  appointed  to 
]i(iuidate  tlie  affairs  of  sucli  (-(mipany,  shall  have  full.powcr  to 
bring  such  actions  as  may  be  necesssary  for  tin'  i)ur|>ose  of 
recovering  the  amounts  of  llic  assessments  Icvicil  as  herein  pro- 
vided.    In  any  action  commenced  pursuant  to  tlie  i)rovisions  of 


282  '  POLITICAL   CODE.  §  604 

this  section  the  court  shall  have  power  to  authorize  the  defendant 
insurance  company,  or  the  receiver  appointed  to  liquidate  the 
affairs  of  such  company,  to  reinsure  all  or  any  part  of  the  busi- 
ness theretofore  written  by  such  company. 

Amended  April  15,  1909 ;  stats.  1909,  p.  910  ;  in  effect  in  sixty 
days. 

Insolvency  proceedings. 

§  604r/.  When  the  insurance  commissioner  shall  have  revoked 
the  certificate  of  authority  authorizing  any  insurance  company, 
not  a  corporation,  to  do  business  on  the  ground  that  such  com- 
pany is  insolvent,  any  person  or  persons  may  commence  insolv- 
ency proceedings  against  such  company.  Such  proceedings  must 
be  done,  had,  and  taken  in  all  respects  as  provided  by  the  then 
e.xisting  insolvency  laws  of  the  state. 

Enacted  March  8.  1907;  stats.  1907,  p.  153. 

Fees  of  commissioner. 

§  605.  The  commissioner  must  require  in  advance,  in  United 
States  gold  coin,  the  following  fees:  (1)  For  filing  papers 
required  under  either  of  subdivisions  two  or  three  or  four  of 
section  G07  of  the  Political  Code,  fifty-five  dollars;  (2)  for 
filing  papers  required  under  subdivision  five  of  section  G07  of  the 
Political  Code  on  account  of  change  or  changes  made  at  one  time, 
ten  dollars;  (3)  for  filing  annual  statement  required  to  bo  filed, 
twenty  dollars;  (4)  for  filing  bond  under  section  623  of  the 
Political  Code,  five  dollars;  (5)  for  filing  appointment  of  agent 
or  stipulation  or  both  appointment  and  stipulation  under  section 
616  of  the  Political  Code,  five  dollars;  (6)  for  filing  each  certifi- 
eato  of  deposit  of  securities  under  section  594a  of  the  Political 
(Jode,  five  dollars;  (7)  for  furnishing  copies  of  papers  filed  in 
his  office,  twenty  cents  per  folio;  (8)  for  certifying  copies,  one 
dollar  ciich  ;  (9)  for  each  certificate  issued,  as  provided  in  sec- 
lion  (-.19  of  the  Political  Code,  five  dollars;  (10)  for  registering 
each  policy  as  provided  by  section  634  of  the  Political  Code,  one 
dollar;  (11)  for  issuing  each  annual  certificate  of  authority 
authorizing  any  insurance  company  to  transact  business  in  this 
state,  ten  dollars;  (12)  for  issuing  each  annual  license  under 
section  633  of  the  Political  Code  to  an  agent  or  solicitor,  one 
dollar;  (13)  for  issuing  each  annual  license  under  section  633rt 
(if  thr  Political  Code  to  an  insurance  broker,  ten  dollars; 
(  H)    lor  attaching  the  seal  of  olfice  to  any  paper  or  document 


§  605  POLITICAL   CODE.  288 

not  herein  specified,  one  dollar;    (IT))    for  issuiti.n'  nny  oilier  cer- 
tificate, two  dollars. 

Amended  April  15,  1909;  slals.  l'.K)I»,  p.  !>17  ;  in  ellVct  in  sixty 
days. 

Assessments. 

§  606.  If  the  salary  of  the  commissioner  and  the  expenses  of 
his  office  exceed  the  fees  and  charges  collected  by  him.  snch 
excess  must  be  annually  assessed  by  the  commissioner  upon  all 
persons  or  corporations  engaged  in  the  business  of  insurance  in 
this  state,  and  they  are  severally  liable  therefor,  pro  rata,  accord- 
ing to  the  amount  of  premiums  received  or  receivable  from  risks 
taken  in  this  state,  respectively,  during  the  year  ending  on  the 
thirty-first  day  of  December  next  preceding  the  assessment.  The 
commissioner  must  collect  all  fees  and  assessments,  and  pay 
monthly  into  the  state  treasury  whatever  amounts  may  be 
received  and  collected  by  him.  If  any  insurance  company  neg- 
lects or  refuses  to  pay  the  amount  of  any  snch  assessments 
within  ten  days  after  demand  thereof  in  writing  by  the  insurance 
commissioner,  the  commissioner  may  revoke  the  certificate  of 
authority  previously  granted  and  commence  an  action  to  recover 
such  assessment. 

Enacted  March  8,  1007  ;  stats.  1007.  p.  154. 

What  papers  companies  must  file  with  commissioner. 

§  607.  The  commissioner  must  cause  every  company,  before 
engaging  in  the  business  of  insurance,  to  file  in  his  office  as  fol- 
lows : 

1.  If  incorporated  under  the  laws  of  this  state,  a  copy  of  the 
articles  of  incorporation  certificate  of  any  increase  or  diminution 
of  the  capital  stock,  certified  by  the  secretary  of  state  to  be  a 
copy  of  that  Avhich  is  filed  in  his  office. 

2.  If  incorporated  under  the  laws  of  any  other  state  or 
country,  a  copy  of  the  articles  of  incorporation,  if  organized  or 
formed  under  any  law  requiring  articles  to  be  filed,  duly  certified 
by  the  officer  having  the  custody  of  such  articles  ;  or  if  not  so 
organized,  a  copy  of  the  law,  charter,  or  deed  or  settlement  under 
which  the  deed  of  organization  is  made,  duly  certified  by  the 
proper  custodian  thereof,  or  proved  by  affidavit  to  be  a  copy  ; 
also,  a  certificate  under  the  hand  and  seal  of  the  proper  officer 
of  such  state  or  country  liaving  supervision  of  insurance  business 
therein,   that  such  corporation  or  company  is  organized   under 


284  POLITICAL   CODE.  S  007 

the  laws  of  such  state  or  couutry,  witli  the  ninount  of  capital 
stock  or  assets  required  by  this  article. 

8.  If  not  incorporated,  a  certificate  settius  forth  the  nature 
aud  character  of  the  business,  the  location  of  the  principal  office, 
the  names  of  the  persons  and  of  those  composing  the  company, 
firm,  or  aiisociation,  the  amount  of  actual  capital  employed  or  to 
be  employed  therein,  aud  the  names  of  all  officers  aud  persons  by 
whom  the  business  is  or  may  be  managed.  The  certificate  must 
be  \'erified  by  the  affidavit  of  the  chief  officer,  secretary,  ageat, 
or  manager  of  the  company  :  and  if  there  are  any  written  articles 
of  agreement  or  company,  a  copy  thereof  must  accompany  such 
certificates;  provided,  however,  when  the  number  of  persons 
composing  such  company  shall  exceed  ten,  such  certificate  need 
not  state  the  names  of  any  greater  number  of  persons  than  ten, 
who  shall  be  the  largest  owners ;  and  if  such  company  be  formed 
out  of  the  United  States,  the  said  certificate  need  not  contain  the 
names  of  any  officers  or  managers  other  than  those  resident 
within  the  United  States,  nor  any  statement  of  capital  not 
employed  within  the  United  States,  and  the  affidavit  must  be 
made  by  the  chief  executive  officer  or  manager  iu  the  TTnited 
States. 

When  by  any  law,  agreement,  or  other  instrument,  any 
change  is  made  in  respect  to  the  particulars  set  forth  in  any 
certificate  hereinabove  mentioned,  a  certified  copy  of  such  law. 
agreement,  or  other  instrument  must  be  filed  by  such  insurance 
company  with  the  insurance  commissioner. 

Enacted  March  8.  1007  ;  stats.  1907,  p.  154. 
VII  Cal.  App.  Dec.  5. 

Actions  not  to  be  transferred  to   United  States  courts. 

§  608.  If  any  foreign  insurance  company  doing  business  in 
this  state  shall  transfer  or  cause  to  be  transferred  to  the  United 
States  circuit  court  from  any  court  of  this  state  having  jurisdic- 
tion of  the  subject-matter,  any  action  or  special  proceeding  ari.s- 
ing  or  growing  out  of  any  business  previously  transacted  in  this 
state,  then  the  insurance  commissioner  shall  have  the  power  and 
it  shall  be  his  duty  upon  receiving  a  certified  copy  of  the  record 
showing  the  facts  hereinabove  set  forth  to  immediately  revoke 
the  certificate  of  authority  authorizing  such  company  to  transact 
insurance  business  in  this  state. 

Ihiacted  March  8,  1907 ;  stats.  1907,  p.  155. 
VII  Cal.  App.  Dec.  3,  4. 


§  CO!)  POLITICAL    CODE.-  285 

Approval  of  name  of  company. 

>!  609.  The  comnii.ssionei'  must  rcciiiire  lln'  iiaiiie  undur  wbicli 
niiy  comiiauy  hereafter  proposes  to  be  formed  or  organized  under 
the  laws  of  this  state,  for  the  transaction  of  insurance  business, 
to  be  submitted  to  him  before  the  commencement  of  such  busi- 
ness ;  and  he  may  reject  any  name  or  title  so  submitted  when 
the  same  is  an  interference  with  or  too  similar  to  one  already 
appropriated,  or  likely  to  mislead  the  public  in  any  respect ; 
and  in  such  case  a  name  not  liable  to  such  objection  must  be 
chosen. 

Enacted  March  S.  1907:  stats.  lltOT,  p.  155. 

Statements  to  be  verified. 

§  610.  The  commissioner  nuist  require  statements  and  reports 
to  be  verified  as  follows:  (1)  If  it  be  made  by  a  corporation 
organized  under  the  laws  of  this  state,  by  the  oaths  of  any  two 
of  the  executive  officers  thereof;  (2)  If  it  be  made  by  an 
individual  or  firm,  by  the  oath  of  such  individual  or  member  of 
the  firm;  (3)  If  made  by  a  foreign  insurance  company,  or  per- 
son, by  the  oath  of  the  principal  executive  officer  thereof,  or 
manager  residing  within  the  United  States. 

Enacted  March  8,  1907;  stats.  1907.  p.  155. 

Annual  statements  of  companies. 

S611.  All  companies  doiug  business  in  this  state  must  make 
and  file  with  the  insurance  commissioner,  on  or  before  the  first 
day  of  March  of  each  year,  statements  which  must  exhibit  the 
condition  and  affairs  of  every  such  company,  on  the  thirty-first 
day  of  December  then  next  preceding,  which  statements,  as 
adjusted  by  the  commissioner  upon  a  proper  examination  of  the 
same,  must  be  published  by  such  company  daily,  for  the  period 
of  one  week,  in  some  newspaper  published  in  the  city  where  the 
principal  office  in  this  state  is  located. 

Enacted  March  8,  1907 ;  stats.  1907,  p.  155. 
VII  Cal.  App.  Dec.  5. 

What  statements  must  show. 

§  612.  Such  statement,  if  made  l>y  other  than  life  iosurance 
companies,  must  show  : 

First — The  amount  of  the  capital  stock  of  the  company. 

Second — The  property  or  assets  held  by  the  company,  specify- 
ing:  (1)  The  value  of  real  estate  held  by  said  company; 
(2)   The  amount  of  cash  on  hand  and  deposited  in  banks  to  the 


280  POLITICAL   CODE.  §  012 

credit  of  the  company,  specifying  the  same;  (3)  The  amount 
of  cnsli  in  the  hands  of  agents,  and  in  course  of  transmission  ; 
(4)  The  nmount  of  loans  secured  by  bonds  and  mortgages,  con- 
stituting the  first  lien  on  real  estate,  on  which  there  is  less  than 
one  year's  interest  due  or  owing;  (5)  The  amount  of  loans  on 
which  interest  has  not  been  paid  within  one  year  previous  to 
such  statement;  (6)  The  amount  due  tlie  company  upon  which 
judgments  have  been  obtained;  (7)  The  amount  of  stocks  of 
this  state,  of  the  United  States,  or  any  incorporated  city  of  this 
state,  and  of  any  other  stocks  owned  by  the  company,  specifying 
the  amount,  number  of  shares,  and  par  and  market  value  of  each 
kind  of  stocks;  (8)  The  amount  of  stocks  held  as  collateral 
security  for  loans,  with  the  amount  loaned  on  «ach  kind  of  stock, 
its  par  value  and  its  market  value;  (9)  The"  amount  of  interest 
due  and  unpaid;  (10)  The  amount  of  all  other  loans  made  by 
the  company,  specifying  the  same;  (11)  The  amount  premium 
notes  on  hand  on  which  policies  are  issued;  (12)  All  other 
property  belonging  to  the  company,  specifying  the  same. 

Third — The  liabilities  of  such  company,  specifying:  (1)  The 
amount  of  losses  due  and  unpaid;  (2)  The  amount  of  claims 
for  losses  resisted  by  the  company;  (3)  The  amount  of  .losses 
in  process  of  adjustment  or  in  suspense,  including  all  reported 
or  supposed  losses;  (4)  The  amount  of  dividends  declared,  due, 
and  remaining  unpaid;  (5)  The  amount  of  dividends  declared, 
but  not  due;  (0)  The  amount  of  money  borrowed  and  security 
given  for  the  payment  thereof;  (7)  Gross  premium  (without 
any  deductions)  received  and  receivable  upon  all  une.xpired 
fire  risks  running  one  year  or  less  from  date  of  policy,  rein- 
surance thereon  at  fifty  per  cent;  (8)  Gross  premiums  (with- 
out any  deductions)  received  and  receivable  upon  all  unexpired 
fire  risks  running  more  than  one  year  from  the  date  of  policy, 
reinsurance  thereon  pro  rata  ;  (9)  Gross  premiums  (without  any 
deductions)  received  and  receivable  upon  all  unexpired  marine 
and  inland  navigation  risks,  except  time  risks,  reinsurance 
thereon  at  one  hundred  ijer  cent;  (10)  Gross  premiums  (with- 
out any  deductions)  received  and  receivable  on  marine  time 
risks,  reinsurance  thereon  at  fifty  per  cent;  (11)  Amount 
rpclaimable  by  the  insured  on  perpetual  fire  insurance  policies, 
being  ninety-five  per  cent  of  the  premiums  or  deposits  received  ; 

(12)  Reinsurance  fund  and  all  other  liabilities,  except  capital; 

(13)  Unused  balances  of  bills  and  notes  taken  in  advance  for 


§  VA'2  POLITICAL    CODE.  287 

liremiunis  on  open  marine  and  inland  policies,  or  otherwise, 
returnable  on  settlement;  (14)  Principal  unpaid  on  scrip  or 
certificates  of  profits,  wliich  have  been  authorized  or  ordered  to 
be  redeemed;  (15)  Amount  of  all  other  liabilities  of  the  com- 
pany, specifying  the  same. 

Fourth — The  income  of  the  company  during  the  preceding 
year:  specifying:  (1)  The  amount  of  cash  premiums  received; 
(2)  The  amount  of  notes  received  from  premiums;  (3)  The 
amount  of  interest  money  received,  specifying  the  same;  (4)  The 
amount  of  income  received  from  all  other  sources,  specifying  the 
same. 

Fifth — The   expenditures    of    the    preceding    year,    specifying: 

(1)  The  amount  of  losses  paid;  (2)  The  amount  of  dividends 
paid;  (3)  The  amount  of  expenses  paid,  including  commissions 
and  fees  to  agents  and  officers  of  the  comi^any  ;  (4)  The  amount 
paid  for  taxes;  (5)  The  amount  of  all  other  payments  and 
expenditures. 

l^i.i-th — (1)    The   amount   of   rislis   written    during   the   year; 

(2)  The  amount  of  risks  expired  during  the  jear ;  (3)  The 
amount  of  risks  written  during  the  year  in  the  State  of  Cali- 
fornia ;   (4)  The  amount  of  premiums  thereon. 

Provided,  that  any  foreign  fire,  marine,  or  inland  insurance 
company,  incorporated  or  not  incorporated,  doing  business  within 
this  state,  shall  retui'n  only  the  business  done  in  the  United 
States  and  the  assets  of  the  company  situated  in  the  United 
States  and  held  for  the  protection  of  the  policyholders  of  the 
company  who  arc  residents  of  the  United  States,  except  that  any 
further  returns  requested  from  time  to  time  bj'  the  insurance 
commissioner  must  be  made. 

Enacted  March  S,  1907;  stats.  1!>()7,  p.  1."."). 
VTI  Oal.  A  pp.  Dec.  5. 

Statements  of  life,   health,   and  accident  companies. 

§  613.  Sucli  sl.iti  ineiil,  if  made  !)y  life,  lieaKli,  aiid  accident 
companies,    muis(    sh<nv  : 

CAPITAL. 

First — The  amount  of  the  capital  stock  of  tlie  company. 

ASSETS. 
Sii-(iii(l     Till'    pi-iipcrly   <ii-   :issrls    hrld    li\'    lln'   ((iiiiii.-iny,   spcci- 
I'ying  :    (I)    'I'bc   \;ilue   of   llie   real   estate   h('l<l    li.\    llii'   (■()ini)aMy  ; 
(2)    Tlie   amount   of  cash   on   hand   and   deposited   in    banks   to 


288  POLITICAL   CODE.  §  613 

the  credit  of  the  company,  specifying  the  same  ;  (3)  The  amount 
of  loans  secured  by  bond  and  mortgage  on  real  estate,  specify- 
ing the  same;  (4)  Amount  of  loans  secured  by  pledge  of  bonds, 
stocks,  or  other  marketable  securities  as  collateral,  specifying  the 
same;  (5)  Cash  market  value  of  all  stocks  and  bonds  owned  by 
the  company,  specifying  the  same;  (G)  Interest  due  the  company 
and  unpaid;  (7)  Interest  accrued,  but  not  due;  (8)  Premium 
notes  and  loans  in  any  form  taken  in  payment  of  premiums  on 
policies  now  in  force;  (9)  Gross  amount  of  premiums  in  process 
of  collection  and  transmission  on  policies  in  force;  (10)  Gross 
amount  of  deferred  premiums;  (11)  All  other  assets,  specifying 
the  same. 

LIABILITIES. 

Third — (1)  Claims  for  death  losses  and  matured  endowments 
due  and  unpaid ;  (2)  Claims  for  death  losses  and  matured  endow- 
ments   in    process    of    adjustment    or    adjusted    and    not    due ; 

(3)  Claims  i-esisted  by  the  company;  (4)  Amounts  due  and 
unpaid  on  annuity  claims;  (5)  Trust  funds  on  deposit  or  net 
present  value  of  all  outstanding  policies,  computed  accoi'ding  to 
the  American  Experience  Table  of  Mortality,  with  interest  at 
the  rate  of  four  and  one  half  per  cent  per  annum  upon  all  out- 
standing risks  written  prior  to  January  1st,  1892,  and  according 
to  the  Combined  Experience  or  Actuaries'  Table  of  Mortality 
with  interest  at  the  rate  of  four  per  cent  per  annum  upon  all 
outstanding  risks  written  from  and  after  the  31st  day  of  Decem- 
ber, 1891,  up  to  and  including  the  31st  day  of  December,  1907, 
and  according  to  the  American  Experience  Table  of  Mortality 
with  interest  at  the  rtae  of  three  and  one  half  per  cent  per 
annum  upon  all  outstanding  risks  written  from  and  after  Decem- 
ber 31st,  1907;  (0)  Additional  trust  fund  on  deposit,  or  net 
jiresent  value  of  extra  and  special  risks,  including  those  on 
impaired  lives;  (7)  Amount  of  all  unpaid  dividends  of  surplus 
percentage,  bonuses,  and  other  description  of  profits  to  policy- 
holders, and  interest  thereon  ;  (8)  Amount  of  any  other  liability 
to  policyhohU'rs  or  annuitants  not  included  above. 

INCOME. 

Fourth — (1)  Cash  received  for  premiums  on  new  policies 
during  the  year;  (2)  (!ash  received  for  renewal  of  premiums 
during  the  year;    (3)   Cash  received  for  purchase  of  annuities; 

(4)  Cash  received  for  all  other  premiums;    (5)   Cash  received 


§Glo  POLITICAL  CODE.  2S9 

for  interest  on  loans,  specifying  the  same;   (6)   Rents  received; 

(7)  Cash  received  from  all  other  sources,  specifying  the  same; 

(8)  Gross  amount  of  notes  taken  on  account  of  new  premiums; 

(9)  Gross  amount  of  notes  taken  on  account  of  renewal  pre- 
miums. 

EXPENDITURES. 

FifiJi — (1)  Cash  paid  for  losses;  (2)  Cash  paid  to  annui- 
tants; (3)  Cash  paid  for  lapsed,  surrendered,  and  purchased 
policies;  (4)  Cash  paid  for  dividends  to  policyholders  ;  (5)  Gash 
paid  for  dividends  to  stockholders;  (G)  Cash  paid  for  reinsur- 
ances; (7)  Commission  paid  to  agents;  (8)  Salaries  and  other 
compensation  of  officers  and  employees,  except  agents  and  med- 
ical   examiners;     (9)    Medical    examiners'    fees    and    salaries; 

(10)  Cash  paid  for  taxes;  (11)  Cash  paid  for  rents;  (12)  Cash 
paid  for  commuting  commissions;  (13)  All  other  cash  payments. 

fiixiJi — ^Balance  sheet  of  premium  note  account. 

tScventh — Balance  sheet  of  all  the  business  of  the  company. 

Eighth — (1)  Total  amount  of  insurance  effected  during  the 
year  on  new  policies;  (2)  Total  amount  of  insurance  effected 
during  the  year  in  the  State  of  California  ;  (3)  Premiums 
received  during  the  year  on  business  done  in  the  State  of 
California. 

Enacted  March  S,  1907;  stats.  1907,  p.  157. 

Mutual   companies. 

S  614.  Mutual  companies  formed,  existing,  and  doing  busi- 
ness under  an  Act  entitled  "An  Act  to  provide  for  the  incorpora- 
tion of  mutual  insurance  companies,"  passed  April  twenty-sixth, 
eighteen  hundred  and  fifty-one,  may  report  their  approved  stock 
as  capital  paid  up,  and  such  notes  for  all  purposes  must  be 
deemed  part  of  the  paid-up  capital  stock  of  such  corporation. 

Enacted  aiarch  8,  1907;  stats.  1907,  p.  109. 
Forms  of  statements  to  be  furnished. 

§  615.  The  insurance  commissioner  nuist  cause  lu  l)e  pro 
pared,  and  furnish  on  demand  to  each  of  the  companies  printed 
forms  of  the  statements  herein  required  ;  and  he  may  make  such 
changes  from  time  to  time  in  the  form  of  such  statements  and 
reports  as  seems  to  him  best  adapted  to  elicit  from  the  com- 
panies a  true  exhibit  of  their  condition.  The  same  forms  must 
l)e  so  furnished  on  demand  to  all  companies  (>ngaged  in  the  same 
kind  of  business. 

Enacted  March  8,  1907  ;  stats.  1907,  p.  159. 

13 — CL. 


i*!H»  rOLITlCAL  CODE.  §  016 

Foreign  companies  must  designate  name  of  agent — Stipulation — 
Service  of  process. 
§616.  The  insurance  commissioner  must  require,  as  a  con- 
dition precedent  to  the  transaction  of  insurance  business  in  this 
state  by  any  foreign  insurance  company,  that  such  company 
file  in  his  office  a  writing  designating  the  name  of  an  agent,  and 
his  place  of  business  in  this  state,  on  whom  any  notice  provided 
by  law  or  by  any  insurance  policy,  proof  of  loss,  summons  and 
other  process  may  be  served  in  all  actions  or  other  legal  pro- 
ceeding against  such  company.  All  notices,  proof  of  loss,  sum- 
mons or  other  process  so  served  give  jurisdiction  over  the  person 
of  such  company.  The  agent  so  appointed  and  designated 
shall  be  deemed  in  law  a  general  agent,  and  must  be  the 
principal  agent  of  such  company  in  this  state ;  any  such  for- 
eign company  shall,  as  a  further  condition  precedent  to  the 
transaction  of  insurance  business  in  this  state,  and  in  considera- 
tion of  the  privilege  to  transact  such  insurance  business  in  this 
state,  make  and  file  with  the  insurance  commissioner  an  agree- 
ment or  stipulation,  executed  by  the  proper  authorities  of  such 
company,  in  form  and  substance  as  follows :  The  (giving  name 
of  company)  does  hereby  stipulate  and  agree  that,  in  considera- 
tion of  the  permission  granted  by  the  State  of  California  to  it 
to  transact  insurance  business  in  this  state,  that  if  at  any  time 
said  company  shall  leave  this  state  or  cease  to  transact  business 
in  this  state  or  shall  be  without  an  agent  in  said  state,  on  whom 
any  notice,  proof  of  loss,  summons,  or  other  legal  process  may 
be  served,  then  in  any  action  or  proceeding  arising  out  of  any 
bu.siness  or  transactions  Avhich  occurred  in  this  state,  service  of 
any  notice  iirovided  by  law,  or  insurance  policy,  proof  of  loss, 
summons,  or  other  legal  process  may  be  made  upon  the  insur- 
ance commissioner,  and  that  such  service  upon  the  commis- 
sioner shall  have  the  same  force  and  effect  as  if  made  upon 
the  company.  Whenever  such  service  of  notice,  proof  of  loss, 
summons,  or  other  legal  process  shall  be  made  upon  the  insur- 
ance commissioner,  he  must,  within  ten  days  thereafter,  trans- 
mit by  mail,  postage  paid,  a  copy  of  such  notice,  proof  of  loss, 
summons,  or  other  legal  process  to  the  company,  addressed 
to  the  manager,  president,  or  secretary  thereof  at  its  home  or 
principal  office.  The  sending  of  such  copy  by  the  commissioner 
shall  be  a  necessary  part  of  the  service  of  the  notice,  proof  of 
loss,  summons,  or  other  legal  process.  When  any  notice,  sum- 
mons, or  other  legal  process  is  served  upon  the  insurance  com- 


§  61G  POLITICAL  CODE.  291 

missioner  pursuant  to  the  provisions  of  this  section,  the  service 
as  to  the  company  shall  be  deemed  complete  at  the  end  of  sixty 
(60)  days  after  the  date  of  the  delivery  of  the  notice,  summons 
or  other  process  to  the  insurance  commissioner.  When  any 
notice,  provided  by  law  or  by  any  insurance  policy,  is  to  be 
served  on  the  agent  designated,  as  in  this  section  provided,  such 
service  may  be  made  as  provided  in  chapter  V,  part  II,  title  XIV 
of  the  Code  of  Civil  Procedure. 

Enacted  March  S,  1907;  stats.  1907,  p.  ir.9. 
VII  Cal.  A  pp.  Dec.  5. 

Penalty  for  failure  to  file  statements. 

§  617.  The  commissioner  must  collect  the  sum  of  one  hundred 
dollars  from  any  company  engaged  in  the  I)usiness  of  insurance 
in  this  state,  for  a  willful  failure  to  make  and  file  in  his  office 
within  the  time  prescribed  by  law,  any  statements  or  stipulalions 
required  by  this  title,  and  an  additional  penalty  of  two  hundred 
dollars  for  each  and  every  month  or  fractional  part  of  a  month 
thereafter,  that  such  company  continue  to  transact  the  business 
of  insurance  until  such  statements  and  stipulations  are  filed. 

Enacted  March  S,  1907;  stats.  1907,  p.  1*)0. 

When  laws  of  other  states  require  trust  deposit,  duty  of  com- 
missioner— Special  deposit  in  state  treasury. 
§  618.  Whenever  the  laws  of  any  state  of  the  United  States, 
or  of  any  country  foreign  to  the  United  States,  require  any 
insurance  company  organized  under  the  laws  of  this  state,  to 
deposit  with  some  officer  of  this  state  securities  in  trust  for, 
and  for  the  benefit  of,  the  policyholders  of  such  company,  as  a 
prerequisite  to  transacting  insurance  business  in  such  other  state 
or  foreign  country,  and  whenever  under  any  laws  of  this  state 
any  insurance  company  is  required  to  deposit  with  any  officer 
of  this  state  securities  in  trust  for,  and  for  the  benefit  of  policy- 
holders of  such  company,  the  insurance  commissioner  of  this 
state  must  receive  from  such  company  securities  in  the  amount 
required  by  the  law  under  which  such  deposit  is  made  on  deposit 
and  in  trust  for  the  policyholders  of  such  company.  None  of 
such  securities  so  deposited  must  be  estimated  above  the  par 
value  of  the  same,  nor  above  their  market  value.  The  insurance 
commissioner  must,  upon  the  receipt  of  such  securities,  forthwith 
make  a  special  deposit  of  the  same  in  the  state  treasury,  in 
packages  marked  with  the  name  of  the  company  from  whom 
received,  where  they  must  remain  as  security  for  policyholders 


Ii!l2  POLITICAL  CODE.  S  GIS 

ill  tlio  coin]);iiiy  to  whom  they  respectively  belong;  but  so  long 
as  the  company  contiiiiu'S  solvent  he  must  permit  it  to  collect 
the  interest  or  dividends  on  the  securities  so  deposited,  and 
from  time  to  time  to  withdraw  any  such  securities  on  depositing 
other  securities  in  the  stead  of  those  to  be  withdrawn.  Such 
new  securities  to  be  of  the  same  value  and  cliaracter  mentioned 
in  this  section,  but  such  securities  must  not  be  withdrawn  from 
tlie  state  treasury  unless  upon  the  written  order  of  the  company 
making  the  deposits,  which  order  must  be  indorsed  by  the  com- 
missioner, or  upon  the  order  and  authority  of  some  court  of 
competent  jurisdiction.  If  the  deposit  is  of  mortgages,  it  shall  be 
accompanied  by  full  abstracts  of  title  or  policies  of  title  insurance 
or  certificates  of  title  issued  by  a  duly  organized  title  insurance 
company  authorized  to  transact  business  under  the  laws  of  Cali- 
fornia, and  the  fees  for  examination  of  title,  unless  accompanied 
by  such  certificates  of  title  or  policies  of  title  insurance,  and  the 
fees  for  appraisal  of  property  shall  be  paid  by  the  company 
making  the  deposit.  If  the  deposit  is  of  stocks  or  bonds,  it 
shall  be  accompanied  l)y  the  fees  necessary  for  the  appraisal 
thereof. 

Amended  April  1.".,  T.lOi);  stats.  100!).  p.  900;  in  eft'ect  in  sixty 
(hiys. 

Certificate  of  deposit. 

S  619.  Whenever  an  insurance  company  has  deposited  with 
the  commissioner  the  requisite  security,  in  conformity  with  the 
requirements  of  the  preceding  section,  the  commissioner  must 
issue  to  such  company  a  certificate,  under  liis  ofhcial  seal,  of 
such  deposit,  for  each  state  or  country  requiring  the  same,  which 
said  certificate  must  state  the  items  and  amount  of  securities 
so  deposited,  and  that  they  are  of  the  value  therein  represented. 

Enacted  March  S,  1007;  stats.  1007,  p.  101. 

Withdrawal  of  deposit. 

§  620.  Whenever  any  insurance  company  so  depositing  securi- 
ties with  the  commissioner  has  paid,  canceled,  or  reinsured  all 
its  unexpired  policies  outstanding  in  the  state,  satisfactorily  to 
the  insurance  commissioner,  and  all  its  liabilities  under  such 
policies  are  extingui.shed,  or  assumed  by  other  responsible  com- 
panies or  corporations,  then,  if  on  application  of  such  company, 
duly  verified,  and  from  an  examination  of  the  books  of  the  com- 
l)any,  and  of  its  ofhcers  under  oath,  the  insurance  commissioner 
is  satisfied   tliat  all  of  its  policies  are  so  paid,  canceled,  extin- 


§  0)20  POLITTC'AL  COPE.  293 

Kuislii'd,  or  n'insmrcl,  he  must  deliver  up  fo  (lie  cniuiiaiiy  the 
seeiirilies  deposited;  proritlcd,  howerer,  tluit  pending  such  exam- 
ination the  securities  requested  to  be  withdrawn  may  at  the  dis- 
cretion of  the  commissioner  Ije  delivered  to  the  depositor  upon 
the  condition  that  tlie  applicant  deposit  with  the  commissioner 
securities  of  like  value ;  and  whenever  the  laws  of  any  other 
state  or  country,  by  reason  of  which  section  six  hundred  and 
twenty-two  of  the  rditical  Code  of  this  state  is  brought  into 
force,  shall  be  repealed  and  abrogated,  then  any  deposit  which 
shall  have  been  made  with  the  commissioner,  under  and  by 
reason  of  said  section  six  hundred  and  twenty-two  of  the  Polit- 
ical Code,  must  bo  delivered  up  to  the  coiiipauy  making  the 
deposit. 

Enacted  :Nrarch  S.  IMOT  ;  stats.  1U07.  p.  KH. 

Annual  examination  of  securities. 

S  621.  The  commissioner  must  make  an  annual  examination 
of  the  securities  received  by  him  from  each  insurance  company, 
and  if  it  appear  at  any  time  that  the  securities  deposited  by  any 
such  company  amount  to  less  than  the  sum  required  for  the  pur- 
poses for  which  the  deposit  was  made,  he  must  notify  the  com- 
pany thereof,  and  unless  the  deficiency  is  made  up  within  thirty 
days  after  notice,  the  commissioner  must  revoke  the  certificate 
of  authority  previously  granted  and  countermand  all  the  certifi- 
cates he  may  have  issued  to  the  company  under  this  chapter, 
and  give  notice  thereof  to  the  officers  of  the  several  states  to 
whom  the  certificate  may  have  been  transmitted. 

Enacted  March  8.  1907;  stats.  1907.  p.  101. 

Relative  to  laws  of  other  states. 

§  622.  "NAlien  by  the  laws  of  any  other  state  or  country,  any 
taxes,  fines,  penalties,  licenses,  fees,  deposits  of  money  or  of 
securities,  or  other  obligations  or  prohibitions,  are  imposed  on 
insurance  companies  of  this  state  doing  business  in  such  other 
state  or  country,  or  upon  their  agents  therein,  in  excess  of  such 
taxes,  fines,  penalties,  licenses,  fees,  deposits  of  securities,  or 
other  obligations  or  prohibitions,  imposed  upon  insurance  com- 
panies of  such  other  state  or  country,  so  long  as  such  laws 
continue  in  force,  the  same  obligations  and  prohibitions  of 
whatsoever  kind  must  be  imposed  upon  insurance  companies  of 
such  other  state  or  country  doing  business  in  this  state.  And 
whenever   under   this   section   any   deposit  of   security   shall   be 


294  POLITICAL  CODE.  §  022 

made  in  this  state,  such  deposit  shall  be  made  in  bomls  of  the 
United  States  government,  or  in  those  of  tlie  State  of  California, 
or  in  interest-bearing  bonds  of  any  of  the  counties  or  incoriuv 
rated  cities  and  towns  of  the  State  of  California,  not  in  default 
for  interest  on  such  bonds,  which  said  securities  uuist  be  esti- 
mated at  not  exceeding  their  par  value  nor  their  luarl^et  value. 
Enacted  March  8,  1907  ;  stats.  1907,  p.  162. 

Tax   on   gross   premiums,   other  than   California   companies. 

§  622ff.  Every  insurance  company  other  than  life,  not  organ- 
ized or  incorporated  under  the  laws  of  California,  and  doing 
business  in  this  state,  and  every  other  insurance  company  other 
than  life,  whose  charter  may  be  owned,  or  a  majority  of  whose 
stock  may  be  controlled,  or  whose  business  may  be  carried  on 
in  the  interest,  or  for  the  benefit  of  any  insurance  company  or 
association  not  organized  or  incorporated  under  the  laws  of 
California,  shall  annually  pay  to  the  insurance  commissioner, 
for  the  state,  a  tax  of  two  (2)  per  cent  upon  the  amount  of  the 
gross  premiums  received  upon  its  business  done  in  the  state.i 
during  the  year  ending  on  the  preceding  thirty-first  day  of 
December,  less  return  premiums,  reinsurance  in  companies 
authorized  to  do  business  in  this  state,  and  losses  actually  paid 
on  its  bu.siness  in  this  state,  and  every  life  insurance  company 
not  organized  or  incorpoi'ated  under  the  laws  of  California, 
which  does  business  or  collects  premiums  or  assessments  in  the 
state,  shall  annually  pay  to  the  insurance  commissioner,  for  the 
state,  a  tax  of  one  per  cent  upon  the  amount  of  the  gross  pre- 
miums received  upon  its  business  done  in  this  state  during  the 
year  ending  on  tlie  preceding  thirty-first  day  of  December.  This 
section  shall  not  be  held  or  construed  so  as  to  relieve  any  com- 
pany or  organization  from  any  tax,  fee  or  other  obligation  or 
charge  imposed  upon  it  by  the  provisions  of  section  six  hundred 
and  twenty-two  of  this  code,  and  whenever  the  taxes  imposed  by 
the  application  of  section  six  hundred  and  twenty-two  exceed 
those  imposed  by  the  application  of  this  section  the  provi-sions  of 
the  former  section  shall  prevail. 

Enacted  March  8,  1907;  stats.  1907,  p.  162. 

Bond  required. 

§  623.  The  commissioner  must  require  every  company,  not 
incorporated  under  the  laws  of  this  state,  now  transacting  or 
proposing  to  transact  insurance  business  by  agent  or  agents  in 


§  G23  POLITICAL  CODE.  295 

this  state,  before  commeucing  such  business  to  file  in  his  office 
a  bond  in  favor  of  the  people  of  the  State  of  California,  to  be 
signed  by  the  company,  as  principal,  with  two  sureties,  to  be 
approved  by  the  commissioner,  in  the  penal  sum  of  twenty  thou- 
sand dollars,  the  condition  of  such  bonds  to  be  as  iollows : 
(1)  That  the  company  and  its  agents  will  pay  all  state,  county, 
and  municipal  property  and  license  taxes,  in  the  manner  and  at 
tlie  time  prescribed  by  law  ;  (2)  That  the  company  named  therein 
will  conform  to  all  the  provisions  of  the  revenue  and  other  laws 
made  to  govern  them;  (3)  And  that  the  company  will  promptly 
pay  all  fees,  assessments,  taxes,  penalties,  and  fines  that  may 
be  laid  upon  or  against  such  company.  Such  bonds  may  be 
sued  on  in  the  same  manner  and  shall  be  subject  to  the  same 
rules  governing  official  bonds. 

Enacted  March  S,  1907 ;  stats.  1907,  p.  KIS. 
YII  Cal.  App.  Dec.  5. 

Same. 

§  624.  Whenever  the  same  company  desires  to  collect  pre- 
miums of  insurance  for  more  than  one  company,  the  commis- 
sioner must  rccjuire  a  separate  bond,  as  pi'ovided  in  the  preceding 
section,  for  each  company  so  represented  by  such  company. 

Enacted  March  S,  1907 ;  stats.  1907,  p.  163. 

Commissioner  to  furnish  data  to  county  assessors. 

S  625.  The  commissioner  must,  before  the  commencement  of 
each  fiscal  .year  as  fixed  in  the  revenue  laws,  furnish  the  assessor 
of  the  county  in  which  the  principal  office  of  any  company  doing 
business  of  insurance  is  situated,  all  the  data  concerning  pre- 
miums collected  bj'  and  all  other  necessary  information  in  rela- 
tion to  the  business  of  such  company  as  will  assist  the  assessor 
in  the  performance  of  his  duties. 

Enacted  March  S,  1907;  stats.  1907,  p.  103. 

List  of  surety  companies  to  be  furnished  county  clerks — What 
list  shall  show. 
§  625ff.  The  insurance  commissioner  of  the  State  of  Cali- 
fornia must  make  up  and  certify  to  the  county  clerk  of  each 
county  of  this  state  a  complete  list  of  all  corporations  engaged 
in  the  business  of  making,  guaranteeing  or  becoming  a  surety 
upon  bonds  or  undertakings  required  or  authorized  by  law,  hold- 
ing cerliiicates  of  authority  to  transact  such  ))usiness  in  this 
state,  which  list  shall  set  forth;    (1)    The   full  corporate  name 


29()  POLITICAL  COUE.  §  G25ff 

of  such  corpora tiou  :  (2)  The  name  of  the  state,  territory 
or  country  under  whose  laws  such  corporation  is  organized ; 
(3)  The  date  of  the  certificate  of  authority  issued  to  such  cor- 
poration to  transact  such  a  business  in  this  state.  From  and 
after  the  date  when  the  list  aforesaid  shall  have  been  certified  as 
hereinbefore  provided,  the  said  insurance  commissioner  shall 
likewise  certify  to  the  county  clerk  of  each  county  of  this  state, 
I  he  same  facts  concerning  any  other  corporation  thereafter 
authorized  to  transact  such  business  in  this  state.  Whenever 
I  he  certificate  of  authority  of  any  such  corporation  to  do  busi- 
ness in  this  state  shall  for  any  reason  be  surrendered,  revoked 
canceled,  or  annulled,  or  whenever  the  said  certificate  of  any 
sucli  corporation  has  been  suspended  as  provided  in  section  one 
thousand  fifty-six  of  the  Code  of  Civil  Procedure  of  this  state, 
or  whenever  any  such  corporation  wliose  certificate  of  authority 
has  been  so  suspended,  again  becomes  authorized  in  law  to  do 
business  in  this  state  under  such  certificate  of  authority,  the 
insurance  commissioner  of  this  state  shall  fortliwith  certify  to 
I  he  county  clerk  of  each  county  of  this  state,  the  name  of  such 
corporation,  and  the  date  of  such  surrender,  revocation,  cnncolla- 
tion,  annulment  or  suspension,  or  of  renewed  authority  to  act 
under  such  certificate. 

P^nacted  March  23,  1907:  slats.  I'.fOT.  p.  ItTT.  s 

f 

Full  compliance  of  law  required. 

S  626.  The  commissioner  must  require  from  every  company, 
before  and  after  engaging  in  the  business  of  insurance,  a  full 
compliance  with  all  the  provisions  of  title  II,  part  IV,  division  T. 
of  the  Civil  Code  applicalile  thereto:  and  every  company  neglect- 
ing to  comply  with  such  re(|nireuuMils  is  subject  to  the  fines  and 
[x'uaUies  therein  prescribed. 

Enacted  March  8,    UHlT  :  stats.  1907.  p.    103. 

Payments  to  be  on  gold  basis. 

V?  627.  All  statements,  estimates,  percentages,  payments,  and 
calculations,  required  by  this  chapter  to  be  made,  either  by  the 
commissioner  or  companies,  must  be  made  on  the  basis  of  gold 
coin  of  the  United  States. 

Enacted  March  S,  1907;  stals.   1907,  p.  103. 

Separate   valuation   of   policies. 

S  628.  \\'hen  Die  (crtilicale  of  llie  insurance  conuuissioner  of 
I  his  state,  of  the   valuation   of   the   policies  of  a    life   insurance 


§  028  roLiTTOAL  conK.  207 

company,  as  provided  in  the  next  section  of  this  code,  issued 
to  any  company  organized  under  the  laws  of  this  state,  shall 
not  be  accepted  by  the  insurance  authorities  of  any  other  state, 
in  lieu  of  a  valuation  of  the  same,  by  the  insurance  ofScer  of 
such  other  state,  then  every  company  oi'ganized  under  the  laws 
of  such  other  state  doing  business  in  this  state,  shall  be  required 
to  have  a  separate  valuation  of  its  policies  made  under  the 
authority  of  the  insurance  commissioner  of  this  state,  as  pro- 
vided in  the  next  section. 

Enacted  March  8,  1907;  stats.  1907,  p.  103. 

Life  companies  must  furnish  data  for  valuation  of  policies — 
Basis  of  valuation. 
§  629.  Every  life  insurance  corporation  organized  under  the 
laws  of  this  state  must,  on  or  l)efore  the  first  day  of  February 
of  each  year,  furnish  the  insurance  commissioner  the  necessary 
data  for  determining  the  valuation  of  all  its  policies  outstand- 
ing on  the  thirty-first  day  of  December  then  next  preceding. 
And  every  life  insurance  company  organized  under  the  laws 
of  any  other  state  or  country,  and  doing  business  in  this  state, 
must,  upon  the  written  requisition  of  the  commissioner,  fur- 
nish him,  at  such  time  as  he  may  designate,  the  requisite  data 
for  determining  the  valuation  of  all  its  policies  then  outstand- 
ing ;  such  valuations  must  be  based  upon  the  rate  of  mortality 
established  by  the  American  Experience  Life  Table,  and  inter- 
est at  four  and  one  half  per  cent  per  annum  on  all  outstanding 
risks  written  jirior  to  January  first,  eighteen  hundred  and  ninety- 
two,  and  sucli  valuations  must  be  based  upon  the  rate  of  mor- 
tality estaldished  by  the  Combined  Experience  or  Actuaries' 
Table  of  Mortality  with  interest  at  the  rate  of  four  per  cent 
I)er  annum  on  all  outstanding  risks  written  from  and  after  the 
thirty-first  day  of  December,  A.  D.  one  thousand  eight  hundred 
and  ninety-one,  up  to  and  including  the  thirty-first  day  of 
Decemlier,  one  thousand  nine  hundred  and  seven,  and  such 
valuations  must  be  based  upon  the  rate  of  mortality  established 
by  the  American  Experience  Table  of  Mortality  with  interest  at 
the  rate  of  three  and  one  half  per  cent  per  annum  on  all  out- 
standing risks  written  from  and  after  December  thirty-first, 
nineteen  hundred  and  seven.  When  the  laws  of  any  other  state 
or  territory  require  of  a  life  insurance  company  organized  under 
the  laws  of  this  state  a  valuation  of  its  outstanding  policies 
by  any  standard  of  valuation  different  from  that  named  in  this 


29S  poTJTTCAT,  ronic.  §  H29 

sectiou,  llie  iusuiauce  eommissiouer  is  hereby  uulhorized  lo  mako 
such  valuation  for  use  in  such  other  slate  or  territory,  and  to 
issue  his  certificate  in  accordance  therewith.  For  the  purpose 
of  making  the  valuations,  the  insurance  commissioner  is  author- 
ized to  employ  a  competent  actuary,  whose  compensation  for 
such  valuation  shall  be  one  cent  for  each  thousand  dollars  of 
insurance,  to  be  paid  by  the  respective  companies  whose  policies 
are  thus  valued. 

Enacted  March  S,  1007;  stats.  1907,  p.  164. 

Fraternal  societies  exempt. 

§  630.  Secret  or  fraternal  societies,  lodges,  or  councils  incor- 
])orated  or  organized  for  the  purpose  of  mutual  protection  and 
relief  of  (heir  members  and  for  the  payment  of  stipulated  sums 
of  money  to  their  members  or  to  the  beneficiaries  of  deceased 
members  which  conduct  their  business  and  secui-e  membership 
on  the  lodge  system  exclusively,  having  ritualistic  work  and 
ceremonies  in  their  societies,  lodges,  or  councils,  and  all  mutual 
or  benefit  associations,  organized  or  formed  and  composed  of 
members  of  any  such  society,  lodge  or  council  exclusively,  are 
exempt  from  the  provisions  of  all  the  insurance  laws  of  this 
state. 

Enacted  March  8,  1907 ;  stats.  1907,  p.  1G4. 

Right  of  action  against  commissioner. 

§  631.  If  at  any  time  the  insurance  commissioner  re\()kes  the 
certificate  of  authority  theretofore  granted  to  any  insurance  com- 
pany or  refuses  to  grant  a  certificate  of  authority  to  any  insur- 
ance company,  any  interested  person  or  company  may  commence 
an  action  against  the  insurance  commissioner  for  the  purpose 
of  reviewing  the  facts  and  the  law  pertinent  to  the  controversy 
and  for  the  purpose  of  obtaining  the  relief  refused  or  for  cancel- 
ing tlic  action  of  the  commissioner.  In  any  such  action  the 
court  shall  have  full  power  to  investigate  all  of  the  facts  de  novo 
without  regard  to  the  determinations  previously  made  by  the 
commissioner.  In  the  trial  of  such  actions  all  of  the  provisions 
of  the  Code  of  Civil  Procedure,  not  inconsistent  herewith,  shall 
be  applicable. 

Enacted  March  8,  1907  ;  stats.  1907,  p.  KU. 

Publication  of  notice  of  withdraw/ai. 

S631r/.  Whenever  any  insurance  company  shall  have  with- 
drawn from  business  in  this  state,  and  whenever  for  any  reason 


§  (131 «  POLITICAL  CODR.  299 

the  iusurauco  cummissiouei"  shall  havt;  I'ovuked  or  canceled  tlie 
certificate  of  authority  authorizing  any  insurance  company  to  do 
business  in  this  state,  the  insurance  commissioner  shall  cause  to 
be  published,  in  each  of  two  daily  newspapers,  one  published  in 
San  Francisco  and  one  published  in  Sacramento,  a  notice  of 
such  revocation  or  of  such  withdrawal.  The  expense  of  such 
publication  shall  be  paid  in  advance  by  the  insurance  company 
withdrawing  or  whose  certificate  shall  have  been  so  revoked. 
Enacted  March  S,  1907  ;  stats.  1907,  p.  165. 

District  attorney  to  be  notified  of  penal  offense. 

§  632.  Whenever  the  insurance  commissioner  ascertains  that 
any  insurance  company,  or  any  of  its  agents,  officers  or  em- 
ployees, or  any  other  person  has  been  guilty  of  violating  any 
of  the  penal  statutes  of  this  state,  the  commissioner  shall  certify 
such  facts  to  the  district  attorney  of  the  county  in  which  such 
offense  was  committed.  Such  offenses  shall  be  prosecuted  and 
tried  in  all  respects  as  provided  in  the  Penal  Code.  For  the 
purpose  of  evidence  the  commissioner  shall  furnish  to  the  dis- 
trict attorney,  without  cost  to  the  county,  certified  copies  of  any 
papers  or  records  of  the  office  of  the  commissioner. 

Enacted  March  8,  1907  ;  stats.  1907,  p.  165. 

Agents  must  file  duplicate  power  of  attorney. 

§  633.  No  person  shall  in  this  state  act  as  the  agent  or 
solicitor  of  any  insurance  company  doing  business  in  this  state 
until  he  has  produced  to  the  commissioner,  and  filed  with  him, 
a  duplicate  power  of  attorney  from  the  company,  or  its  author- 
ized agent,  authorizing  him  to  act  as  such  agent  or  solicitor. 
Upon  filing  such  power,  the  commissioner  shall  issue  a  license 
to  him  to  act  as  such  agent  or  solicitor  for  such  company,  if 
such  company  has  received  a  certificate  of  authority  from  sych 
commissioner  to  do  business  in  this  state.  Such  license  shall 
continue  in  force  until  July  first  after  the  date  thereof,  but 
must  be,  and  shall  be,  sooner  revoked  upon  application  of  the 
company  or  its  authorized  agent.  Such  license  may  be  renewed 
from  time  to  time,  for  an  additional  period  of  twelve  months, 
on  production  by  the  holder  to  the  commissioner  of  a  certificate 
from  the  company  that  such  person's  authority  as  such  agent 
or  solicitor  continues.  The  commissioner  shall  keep  an  alpha- 
heliciil  list  of  Ihe  names  of  the  persons  to  whom  such  licenses 


300  roi.iTiCAL  CODE.  §  033 

shall  be  issued,  with   the  date  of  the   license  and  renewal,  and 
the  name  of  the  company  for  whom  such  person  is  working. 

Enacted  March  8,  1907 ;  stats.  1907,  p.  105. 

See,  also,  Pen.  C.  §  439. 

Registration  of  life  policies — Special  deposit — Excess  of  securi- 
ties. 
§  634.  It  shall  be  lawful  for  any  company  or  corporation 
transacting  the  business  of  life  insurance  in  this  state  to  register 
with  the  insurance  commissioner  such  of  its  policies  as  may 
be  agreed  upon  by  the  company  and  the  insured ;  such  registra- 
tion to  consist  in  a  written  or  printed  list  of  such  policies  filed 
with  the  commissioner,  showing  the  name  and  age  of  the  insured, 
number  and  date  of  the  policy,  and  the  kind  and  amount  of 
insurance  in  each  case.  Such  list  must  be  filed  with  the  com- 
missioner within  thirty  days  after  the  issuance  of  the  first 
registered  policy  ;  and  must  contain  all  such  policies  issued  up 
to  the  date  of  filing.  After  that  date  the  company  must,  within 
three  days  after  the  first  day  of  each  calendar  month,  file  a 
statement  embracing  all  its  registered  policies  issued  since  the 
filing  of  its  last  preceding  list.  Upon  filing  such  lists  of  policies, 
from  time  to  time,  the  company  must  deposit  with  the  commis- 
sioner, as  a  special  deposit  for  the  benefit  of  such  registered 
policies,  securities  of  the  denominations  stated  in  section  four 
hundred  and  twenty-one  of  the  Civil  Code  as  permissible  for  the 
investment  of  the  capital  and  accumulations  of  insurance  com- 
panies. Such  deposit  must  be  in  an  amount  equal  to  the  full 
net  value  of  all  policies  registered  up  to  the  time  of  making 
the  deposit,  and  must  at  all  times  be  equal  to  such  net  value 
of  all  registered  policies.  Upon  receipt  of  such  securities,  the 
commissioner  must  immediately  deposit  them  in  the  state  treas- 
ury, in  accordance  with  the  provisions  of  section  six  hundred 
and  eighteen  of  the  Political  Code,  where  they  must  remain  as 
a  special  security  for  the  benefit  of  such  registered  policies. 
Such  company  may  at  any  time  withdraw  any  excess  of  securi- 
ties above  the  net  present  value  hereinbefore  specified,  upon  sat- 
isfying said  commissioner  by  written  proof  that  such  excess 
exists,  and  shall  be  allowed  to  receive  the  interest  on  all  securi- 
ties deposited,  and  to  exchange  such  securities  by  substituting 
other  securities  of  the  character  in  whicli,  l)y  the  laws  of  this 
state,  it  may  invest  its  funds. 

Enacted  March  8,  1907  ;  stats.  1907,  p.  100. 


§  G34rt  POLITICAL  CODE.  301 

Definition  of  certain  words. 

§  634a.  The  word  company  as  used  in  this  title  includes  every 
association,  corporation,  firm,  or  person  transacting  or  desiring 
to  transact  any  kind  of  insurance  business  under  the  laws  of 
the  State  of  California  ;  provided,  that  no  part  of  this  act  shall 
be  held  to  apply  to  any  company  organized  under  an  act  entitled 
"An  act  to  provide  for  the  organization  and  management  of 
county  fire  insurance  companies,"  approved  April  1,  1897,  or  to 
any  corporation  doing  or  transacting  the  business  of  mutual 
insurance  on  the  assessment  plan  as  defined  in  section  four 
hundred  and  fifty-three  d  of  the  Civil  Code  of  the  State  of  Cali- 
fornia. The  words  "capital  stock"  as  referred  to  in  this  title 
shall  be  deemed  to  include  the  capital  of  any  person,  firm  or 
association. 

Enacted  March  S,  1907  ;  stats.  1907,  p.  10(1 

For  act  of  April  1.  1897.  see  "Insurance,"  statutes  at  large, 
Appendix. 

Penalties  payable  on  dennand. 

§  6Z4b.  All  fines,  taxes,  assessments,  and  penalties  provided 
for  in  this  title  shall  be  due  and  payable  on  the  demand  of 
the  insurance  commissioner.  If  the  same  are  not  paid  within 
ten  days  after  such  demand  is  made,  then  the  insurance  com- 
missioner shall  institute  an  action  in  the  name  of  the  people 
of  the  State  of  California  for  the  purpose  of  recovering  such 
fines,  i)enaltios.  and  taxes,  or  either,  as  the  case  may  be.  All 
such  actions  shall  b(>  sub.iect  to  all  the  i)rovisions,  of  the  Code 
of  Civil  Procedure,   which   may   be  applicable   thereto. 

Enacted  March  8,  1907;  stats.  1907,  p.  im. 


[Article  XVIVo.] 

[Sections  635rt  to  03.5/  added  to  rolitieal  Code  March  IS.  1905  ; 
stat.s.  1905,  p.  156.] 

Investment  Companies. 

635a.  Investment  company  defined. 

635b.   Investment   companies   not   licensed   by   bank   or   other 

commissioners.      Deposit   with    state    treasurer    cash 

or  securities. 
G35c.   Articles  of  incorporation   to  be  filed  with   secretary  of 

state.      Fees.      Statement. 
635d.  Duty  of  state  treasurer.     Duty  of  attorney  general. 


302  POLITICAL  CODE.  §  (>S5ff 

Sec.  635c.  Withdrawal  of  deposit  upon  ceasing  to  do  business. 

635/^.  Right  to  substitute  securities  for  casli  deposit. 

635£r.  Amount  of  money   to   be   loaned   out   of  reserve   fund. 

Collateral  may  be  deposited  with  treasurer. 

635ft.  Reserve  fund. 

6351  Duty  of  attorney  general. 

635j.  Violation  of  the  provisions  of  this  act ;  penalty. 

635fc.  Not  to  do  business  until  deposit  is  made. 

635Z.  Application. 

Investment  company  defined. 

§  635(/.  Every  person,  corporation,  compiiny.  associntion, 
co-partnership  or  hulividual  in  the  State  of  California  now 
engaged  in  or  that  shall  hereafter  engage  in  the  business  of 
placing  or  selling  bonds,  debentures  or  certificates  of  invest- 
ment by  whatsoever  name  said  bonds,  debentures  or  certificates 
of  investment  may  be  known  or  designated,  when  such  business 
is  conducted  on  the  partial  payment  or  installment  payment 
plan,  or  in  placing  or  selling  any  species  of  bonds,  debentures 
or  certificates  of  investment,  on  the  partial  payment  or  install- 
ment plan,  wherein  or  whereby  the  holder  or  holders  of  said 
bond,  debentures  or  certificates  of  investment  are  or  may  become 
entitled  to  claim  and  receive  from  such  person,  corporation,  com- 
pany or  association  a  return,  either  at  a  definite  or  indefinite 
time,  in  cash,  or  in  merchandise,  or  any  property,  for  the 
partial  payments  or  installments  of  money  so  paid,  and  wherein 
or  whereby  the  holder  may  be  subject  to  a  fine  or  forfeiture  as 
a  penalty  for  non-payment  of  said  partial  payments  or  install- 
ments, is  hereby  declared  to  be  an  investment  company  under 
the  provisions  of  this  act. 

Enacted  March  18,  1905;  stats.  IDOH.  p.  ISC. 

Investment  companies  not  licensed  by  bank  or  other  commis- 
sioners— Deposit  with  state  treasurer  cash  or  securities. 
§  635&.  Evei-y  corporation,  company,  association,  co-partner- 
ship or  individual  now  engaged  in,  or  that  shall  hereafter  engage 
in  business  in  this  state  as  an  investment  company  as  herein- 
before defined  and  not  licensed  by  nor  under  the  supervision 
of  the  bank  commissioners,  building  and  loan  commissioners  or 
insurance  commissioner,  that  shall  place  or  sell  any  bond  or 
lionds,  debenture  or  debentures,  certificate  or  certificates  of 
investment  on  the  partial  payment  plan  whereby  the  holder  or 
holders  of  such  bond  or  bonds,  debenture  or  debentures,  or  cer- 
tificate or  certificates  of  investment  are  or  may  become  entitled 


S  635&  POUTIfAT,  CODE.  303 

lo  claim  iiud  roceive  from  such  corporation,  company  or  asso- 
ciatiou,  a  return,  either  at  a  definite  or  indefinite  time,  in  cash, 
or  in  merchandise,  or  in  property,  for  the  partial  payments  or 
installments  of  money  so  paid,  and  wherein  or  whereby  the 
holder  may  be  subject  to  a  fine,  or  penalty  of  forfeiture  for  non- 
payment of  ~said  partial  payments  or  installments,  is  hereby 
required  to  deposit  within  sixty  days  after  the  passage  of  this 
act.  in  cases  of  corporations,  persons,  companies  or  associations 
now  existing-  and  doing  business,  or  before  commencing  busi- 
ness in  cases  of  persons,  corporations,  companies  or  associations 
not  now  engaged  in  business,  for  the  security  of  the  holder  or 
iiolders  of  the  bonds,  debentures  or  certificates  issued  by  it. 
with  the  treasurer  of  the  State  of  California,  in  cash,  or  in 
securities  to  be  approved  by  said  treasurer,  the  sum  of  fi\'e 
thousand  dollars  ($5,000),  and  in  addition  thereto  shall  deposit 
semi-annually,  with  the  treasurer  of  the  State  of  California,  in 
cash,  or  securities  to  be  approved  by  said  officer,  in  the  manner 
aforesaid,  ten  per  cent  of  all  premiums  received  on  the  sale  of 
such  bonds,  debentures  or  certificates,  until  the  sum  so  deposited 
shall  amount  to  the  sum  of  one  hundred  thousand  dollars. 
Enacted  March  18.  1905  :  stats.  1905.  p.  157. 

Articles  of  incorporation  to  be  filed  with  secretary  of  state — 
Fees — Statement. 
§  635f.  Every  investment  company  as  herein  defined  now 
doing  business  in  the  State  of  ('alifornia  shall,  within  sixty 
days  after  the  approval  of  this  act,  and  every  investment  com- 
pany hereafter  organized  to  carry  on  the  businres  of  an  invest- 
ment company  as  hereinbefore  defined,  shall,  prior  to  engaging 
in  such  business,  in  addition  to  making  such  deposit,  file  with  the 
secretary  of  state  a  duly  authenticated  copj-  of  its  articles  of 
incorporation,  charter  or  other  instrument  authorizing  it  to  do 
business,  and  shall  pay  to  the  secretary  of  state  the  fees  pro- 
vided by  law  to  be  paid  such  officer  for  filing  articles  of  incor- 
poration within  this  state  for  a  capital  stock  of  like  amount,  the 
same  to  be  accompanied  with  a  statement  showing — 

(a)  The  name  of  the  corporation,  company,  association, 
co-partnership  or  individual ; 

(b)  The  place  where  the  principal  business  of  the  company, 
corporation,  association,  co-partnership  or  individual  within  this 
state  is  or  is  to  be  carried  on  ; 


304  roLiTicAi/coDE.  §  G35c 

(c)  The  amount  of  capital  stock  of  the  corporation,  associa- 
tion or  company,  and  the  amount  of  paid-up  capital  stock ; 

(d)  The  names  and  residences  of  the  incorporators  and  its 
stockholders  at  the  time  when  said  statement  is  filed,  and  the 
name  of  its  officers  and  date  when  their  terms  will  expire ; 

(e)  The  name  and  address  of  the  officers  or  representative 
within  the  state  upon  whom  process  can  be  served  ; 

if)  A  statement  of  the  net  premiums  received  from  the  sale 
of  bonds,  debentures  or  certificates  of  investment  during  the 
preceding-  six  months;  which  statement  shall  remain  a  public 
record  in  said  office. 

Enacted  March  IS,  1905;  stats.  1905.  p.  157. 

Duty  of  state  treasurer — Duty  of  attorney  general. 

§  635r/.  The  treasurer  of  the  State  of  California  shall  when- 
ever such  fact  is  brought  to  his  knowledge  notify  the  attorney 
general  of  the  non-compliance  of  any  person,  company,  corpora- 
tion or  association  doing  business  as  an  investment  company 
as  hereinbefore  defined  in  the  State  of  California  with  the  pro- 
visions of  this  act,  and  the  attorney  general  shall  immediately 
after  receiving  such  notification  commence  an  action  against  such 
corporation,  company  or  association  in  the  name  of  the  people  of 
the  State  of  California  : 

(a)  To  dissolve  such  corporation,  company  or  association,  if 
incorporateil  or  organized  under  the  laws  of  the  State  of  Cali- 
fornia ; 

(6)  To  en.ioin  and  restrain  such  person,  corporation,  com- 
pany or  association  from  doing  business  within  the  State  of 
California,  if  an  individual  or  if  incorporated  and  organized 
at  any  jjlace  without  this  state. 

Enacted  March  18,  1905 ;  stats.  1005,  p.  158. 

Withdraw/al   of  deposit   upon   ceasing   to  do   business. 

S  635r.  Every  corporation,  company,  association,  co-partner- 
ship or  individual  that  has  made  a  deposit  with  the  treasurer 
of  the  State  of  California  in  conformity  with  and  under  the 
provisions  of  this  act,  may,  upon  ceasing  to  do  business  within 
the  state,  maintain  an  action  against  the  treasurer  of  the  State 
of  California  to  withdraw  its  deposit.  It  shall  be  the  duty  of 
the  attorney  general  to  defend  such  action,  and  if  upon  judg- 
ment being  rendered  therein  it  shall  be  found  that  said  corpora- 
tion, company  or  association  has  no  liabilities  within  the 
state,   the  treasurer  of  the   State  of  California  shall   return  to 


§  (iSoe  POLITICAL  CODE.  305 

said  corporation,  company  or  association,  or  to  its  order,  the 
cash  or  securities  deposited  by  it  under  the  provisions  of  this  act, 
but  all  expenses  of  such  suit  shall  in  any  event  be  paid  by  such 
corporation,  company  or  association. 

Enacted  March  IS,  1905 ;  stats.  1905.  p.  158. 

Right  to  substitute  securities  for  casli   deposit. 

§  635/.  Every  corporation,  company,  association,  co-partner- 
ship or  individual  depositing  cash  or  securities  with  the  treas- 
urer of  the  State  of  California,  in  conformity  with  the  provisions 
of  this  act,  shall  have  the  right  to  substitute  securities  in  equal 
value  for  cash  deposited,  or  other  securities  of  like  value  for 
those  on  deposit,  upon  securing  the  approval  of  the  treasurer  of 
the  State  of  California,  to  said  exchange,  and  the  treasurer  is 
hereby  authorized  to  permit  such  exchange  of  cash  for  securi- 
ties, or  securities  for  other  securities,  or  securities  for  cash 
deposited  by  such  corporation,  company  or  association  if  in  his 
judgment  such  securities  are  equal  in  value  to  the  amount  of 
cash  provided  by  law  to  be  deposited.  Every  corporation,  com- 
pany or  association  so  making  a  deposit  in  compliance  with  or 
under  the  provisions  of  this  act  may  collect  and  use  any  dividend, 
interest  or  profits  arising  on  or  from  any  securities  deposited 
with  the  trea.surer  of  the  State  of  California,  provided  such 
security  is  not  thereby  depreciated  in  value. 

Enacted  March  18,  1905 ;  stats.  1905,  p.  159. 

Amount  of  money  to  be  loaned  out  of  reserve  fund — Collateral 
may  be  deposited  with  treasurer. 
S  635.'/.  No  corporation,  company,  association,  co-partnership 
or  individual  doing  business  within  this  state  as  an  investment 
company  as  hereinbefore  defined  shall  hereafter  lend  to  holders 
of  bonds,  debentures  or  certificates  of  investment,  out  of  its 
reserve  fund,  any  amount  greater  than  the  proportionate  shain^ 
of  such  ))ond,  debenture  or  certificate  of  investment  in  said 
reserve,  and  whenever  such  loan  is  made  it  shall  be  evidenced 
by  the  note  of  the  borrower  and  secured  by  a  deposit  as  collateral 
security,  of  the  bond,  debenture  or  certificate  of  investment  ou 
which  the  same  is  made.  Any  collateral  so  taken  may  be 
deposited  with  the  treasurer  of  the  State  of  California  as  a  part 
of  Ihe  dejiosit  hereinbefore  i-('(|uired  and  it  may  l>o  (•(uniinted  ;is 
making  so  mu<-li  of  said  ivciiiircd  deposit  ;is  lln'  iiropml  iuiiMle 
share  of  such  bonds,  ({(Mn'utures  or  certificates  of  iiiM'slnieut  so 


306  POLITICAL  CODE.  §  635j7 

deposited  as  the  entire  reserve  fund  amounts  to,  not  exceeding 
liowever  the  amount  loaned. 

Enacted  March  18,  1905  ;  stats.  1905,  p.  159. 

Reserve  fund. 

§  635/(.  Evoiy  corporation,  company,  association,  co-partner- 
ship or  individual  doing  business  within  this  state  as  an  invest- 
ment company  as  hereinbefore  defined  shall  apportion  not  less 
than  forty  per  cent  of  every  partial  payment  or  installment 
received  from  the  sale  of  any  bond  or  bonds,  debenture  or 
debentures,  certificate  or  certificates  of  investment  as  a  reserve 
fund ;  said  reserve  may  bo  invested  from  time  to  time  within 
the  discretion  of  the  board  of  directors  or  governing  body  of  such 
corporation,  company,  association,  co-partnership  or  individual. 

Enacted  March  18,  1905 ;  stats.  1905,  p.  IGO. 

Duty  of  attorney  general. 

§  635i.  The  attorney  general  of  the  State  of  California  shall, 
at  any  time  that  he  may  deem  proper,  or  at  any  time  upon 
(he  complaint  of  any  holder  of  any  bond  or  bonds,  debenture 
or  debentures,  certificaite  or  cerlificates  of  investment  by  what- 
ever name  they  be  known  or  designated,  make  any  examina- 
tion of  the  affairs  of  any  corporation,  comi)any  or  association 
doing  business  within  this  state  as  an  investment  company  as 
hei'cin  defined,  and  inquire  into  the  investmcsnts  of  the  reserve 
fund  of  such  corporation,  company  or  association  and  if  upon 
such  examination  it  shall  be  ascertained  that  any  corporation, 
com])ai)y  or  association  so  doing  business  has  not  assets  to  equal 
in  value  the  total  amount  of  reserve  as  in  the  last  section 
recpiircd  wilh  interest  thei'(!on  at  three  and  a  half  per  cent  per 
annum  compounded  annually  from  the  time  of  the  sale  of  such 
bonds,  debentures  or  certificates  of  investment,  he  shall  com- 
mence an  action  in  the  name  of  the  people  of  the  State  of  Cali- 
foi'nia  to  restrain  and  enjoin  said  corporation  from  doing 
business  and  unless  said  reserve  is  made  to  equal  the  amount 
required  before  judgment  is  rendered  in  said  action,  judgment 
shall  be  rendered  restraining  and  enjoining  said  corporation, 
company  or  association  from  doing  business  within  this  state, 
and  he  shall  in  his  discretion  institute  proceedings  against  such 
company,  corporation,  association,  co-partnorship  or  indi\idual 
to  have  it  declared  bankrupt. 

Enacted  March  18,  1905;  stats.  1905,  ii.  IGO. 


§  635/  POLITICAL  CODE.  307 

Violation  of  the  provisions  of  this  act;  penalty. 

§  635/.  Every  officer,  ageut  or  representative  o£  any  corpora- 
tion, company  or  association  doing  business  within  this  state  as 
an  investment  company  as  hereinbefore  defined,  who  shall  place 
or  sell  any  bond  or  bonds,  debenture  or  debentures,  or  certificate, 
or  certificates  of  investment  of  any  company  that  has  not  com- 
plied with  the  provisions  of  this  act  shall  be  guilty  of  a  mis- 
demeanor, and  upon  conviction  thereof  shall  be  punished  by  a 
fine  of  not  less  than  one  hundred  dollai-s,  and  not  more  than 
five  hundred  dollars,  for  each  offense,  or  by  imprisonment  in  the 
county  jail  for  not  less  than  thirty  days,  nor  more  than  six 
months,  or  by  both  such  fine  and  imprisonment. 

Enacted  March  18,  1905 ;  stats.  1905,  p.  160. 

Not  to  do  business  until  deposit  is  made. 

s  6357.'.  No  person,  firm,  corporation,  company,  co-partner- 
ship or  individual  shall  issue,  sell  or  dispose  of  any  species  of 
bond  or  bonds,  debenture  or  debentures,  certificate  or  certifi- 
cates of  investment  on  the  partial  payment  or  installment  plan 
whereby  the  holder  or  holders  of  such  bond  or  bonds,  deben- 
ture or  debentures,  or  certificate  or  certificates  of  investment 
are  or  may  become  entitled  to  claim  and  receive  from  such  per- 
son, firm,  company,  association  or  co-partnership  a  return  either 
at  a  definite  or  indefinite  time  in  cash,  or  in  merchandise,  or 
in  propert}',  for  the  payment  of  installments  so  paid,  and 
wherein  or  whereby  the  holder  may  be  subject  to  a  fine  or 
penalty  or  forfeiture  for  non-paj'ment  of  such  partial  payments 
or  installments,  without  having  complied  with  the  provisions 
of  this  act  and  first  made  the  deposit  required  by  section  two 
of  this  act. 

Enacted  March  IS.  1905  :  stats.  1905,  p.  161. 

Application. 

§  635/.  All  provisions  of  this  act  providing  for  the  making 
of  said  deposits,  the  exchange  of  securities  and  the  penalties 
for  selling  said  bonds,  debentures  or  certificates  shall  apply  to 
all  persons,  corporations,  associations,  firms  or  co-partnerships 
engaged  in  the  business  of  investment  companies  as  herein 
defined. 

Enacted  March  IS,  1905 ;  stats.  1905,  p.  131. 


308  POLITICAL  CODE.  §  955 


CTTArTER  VII. 

GENERAL     PROVISIONS    RELATING    TO     DIFFERENT 
CLASSES   OF    OFFICERS. 


Article  IX. 

Bonds   of   Officers. 

Sec.  955.     Justification  of  sureties. 

956.      Sureties  for  less  than  the  penal  .sum. 

Justification  of  sureties. 

§  955.  The  officer  whose  dutj'  it  is  to  approve  official  bonds 
required  of  state,  county,  city  and  county,  or  township  officers, 
must  not  accept  or  approve  any  such  bond,  unless  each  of  the 
sureties  severally  justify  before  an  officer  authorized  to  admin- 
ister oaths  as  follows : 

4.  A  corporation  such  as  is  mentioued  in  section  ten  Iiundred 
and  fifty-six  of  the  Code  of  Civil  Procedure  of  this  state,  may 
become  and  shall  be  accepted  as  sole  and  sufficient  surety  upon 
any  bond  or  undertaking  authorized  or  required  by  the  pro- 
visions of  this  code  or  of  any  law  of  this  state,  subject  to  the 
provisions  of  said  section,  and  those  of  section  ten  hundred  and 
fifty-seven  of  the  same  code. 

Amended  March  10,  1889 ;  stats.  1889,  p.  220. 

See  §§  IO.jG  and  1057,  Code  Civ.  Proc.  ;  also  '"Bonds,"  statutes 
at  large,  Appendix. 

Sureties  for  less  than  the  penal  sum. 

§  956.  When  the  penal  sum  of  any  bond  required  to  be  given, 
amounts  to  more  than  one  thousand  dollars,  the  sureties  may 
become  severally  liable  for  portions  of  not  less  than  five  hun- 
dred dollars  thereof,  making  in  the  aggregate,  at  least  two 
sureties  for  the  w^hole  penal  sum.  And  if  any  such  bond  becomes 
forfeited  an  action  may  be  brought  thereon  against  all  or  any 
number  of  the  obligors,  and  judgment  entered  against  them, 
either  jointly  or  severally,  as  they  may  be  liable.  The  judg- 
ment must  not  be  entered  against  a  surety  severally  bound  for 
a  greater  sum  than  that  for  which  he  is  specially  liable  by  the 
terms  of  the  bond.     Each  surety  is  liable  to  contribution  to  his 


§  956  POLITICAL  CODE.  309 

co-surotios  in  proporlion   to  the  amount  for  wliicli   lu'  is  lial)lo. 
Any  corpora  lion,  such  as  is  mcnlioued  in  seel  ion  nine  InindnMl 
and   fifty-five   of   this   code,    may   become   one   of   such   sureties, 
or  be  accepted  as  sole  and  sufficient  surety. 
Amended  March  IG,  1SS9 ;  stats.  1889,  p.  220. 
74  Cal.  370. 


TITLE  VI. 

Public  Ways. 

CIIArTEU   I. 

PUBLIC  WATERS. 

Article  IX. 

San    Francisco    Harbor    and    State    Harbor    Commissioners. 

Sec.  25240.     Power   of   state   harbor   commissioners   to    set   apart 
property  for  aquatic  sports. 

Power  of  state  harbor  commissioners  to  set  apart  property  for 
aquatic  sports. 

S  2524m.  The  l)oard  of  state  liarlior  commissioners  shall  have 
power  to  set  apart  and  assign  any  property  under  their  con- 
trol, for  a  period  not  exceeding  ten  years,  to  any  corporation, 
club  or  association  organized  for  the  purpose  of  developing  and 
promoting  aquatic  sport ;  provided,  that  no  property  shall  be  set 
apart  under  provisions  of  this  section  to  any  corporation,  club, 
or  association  the  object  of  which  is  pecuniary  profit ;  and  pro- 
vided further,  that  when  any  property  has  been  set  apart  under 
the  provisions  of  this  section  to  any  corporation,  club  or  asso- 
ciation, and  such  corporation,  club  or  association  shall  cease  to 
be  actively  engaged  in  the  prosecution  of  the  object  and  purposes 
for  which  it  was  organized  or  incorporated  such  assignment  shall 
thereupon  cease  and  determine  as  to  such  corporation,  club,  or 
association. 

Enacted  February  23.  1907  ;  stats.  1907,  p.  43. 


310  POLITICAL  CODE.  §  2619 

CHAPTER  II. 

HIGHWAYS. 

Akticle  I. 

Enumeration  of   Highways. 

Sec.  2619.     Expiration  of  franchises. 

Expiration  of  franchises. 

§  2619.  Whenever  the  franchise  for  any  toll  bridge,  trail, 
turnpike,  plank  or  common  wagon  road  has  expired  by  limitation 
or  uon-usev,  such  bridge,  trail,  turnpike,  plank  or  common 
wagon  road  becomes  a  free  public  highway;  and  no  claim  shall 
be  valid  against  the  public  for  right  of  way,  or  for  the  land 
or  material  comprising  such  bridge,  trail,  turnpike,  plank,  or 
common  wagon  road.  All  public  highways,  once  established, 
shall  continue  to  be  public  highways  until  abandoned  by  order 
of  the  board  of  supervisors  of  the  county  in  which  they  are 
situated,  or  by  operation  of  law,  or  judgment  of  a  court  of 
competent  jurisdiction. 

Enacted  February  28,  1883 ;  stats.  1883,  p.  G. 

65  Cal.  251 ;  71  Cal.  402 ;  78  Cal.  14,  408  ;  79  Cal.  170 ; 

80  Cal.  342 ;  81  Cal.  124 ;  82  Cal.  157 ;  83  Cal.  267 ;  89 

Cal.  13 ;  94  Cal.  539 ;  95  Cal.  83,  469 ;  99  Cal.  213,  293 ; 

102  Cal.  29;  103  Cal.  230;  104  Cal.  439;  108  Cal.  596; 

122  Cal.  338 ;  132  Cal.  170  ;  144  Cal.  354  ;  7  Cal.  App. 

492. 

Article  V. 

Performance   of   Highway    Labor   and   Commutation. 

Sec.  2G71.     Employers    responsible    for    road    poll    tax    assessed 
against   employees. 

Employers  responsible  for  road  poll  tax  assessed  against  em- 
ployees. 
8  2671.  Corporations,  or  other  employers  of  persons  in  any 
road  district  subject  to  road  tax,  are  chargeable  for  the  road  poll 
tax  assessed  against  their  emi:)loyees  to  the  extent  of  any  credit 
in  their  hands  not  exceeding  such  tax  ;  provided,  the  road  over- 
seer shall  first  give  notice  to  such  employer,  or  the  managing 
agent  of  such  corporation,  and  from  the  time  of  such  notice,  the 


§  2()71  POLITICAL  CODE.  311 

amount  of  any  credit  in  his  hands,  or  that  shall  thereafter  accrue 
sufficient  to  satisfy  said  tax,  shall  be  paid  to  the  road  tax  col- 
lector, whose  receipt  shall  be  evidence  in  bar  of  the  prosecution 
of  any  action  by  the  employee  against  the  principal  for  the 
recovery  of  the  same. 

Enacted  February  28,  1883 ;  stats.  1883,  p.  12. 

Refusal  to  give  names  :  Pen.  C.  §  434. 

Akticle  VI. 
Laying    Out,    Altering,    and    Discontinuing    Roads, 
Sec.  2694.     Roads  crossing  railroads,  canals,  and  ditches. 

Roads  crossing  railroads,  canals,  and  ditches. 

§  2694.  Whenever  highways  are  laid  out  to  cross  railroads, 
canals,  or  ditches,  on  public  lands,  the  owners  or  corporations 
using  the  same  must,  at  their  own  expense,  so  prepare  their 
roads,  canals,  or  ditches,  that  the  public  highway  may  cross  the 
same  without  danger  or  delay.  And  when  the  right  of  way  for 
a  public  highway  is  obtained  through  the  judgment  of  any  court 
over  any  railroad,  canal,  or  ditch,  no  damages  must  be  awarded 
for  the  simple  right  to  cross  the  same. 

Enacted  February  28,  1883  ;  stats.  1883,  p.  1".. 

CHAPTER  III. 
TOLL   ROADS. 

Art.   I.     Construction  of  toll  roads.     §§  2779-2802. 

II.     Use   of    toll    roads,    and    obstructions    thorcou.     §§  2811- 
2817. 
III.     Inspection  and  repairs.     §§  2827-2832. 

Abticle  I. 

Construction  of  Toll   Roads. 

(See,  also,  wagon  road  coi'porations.  Civ.  C.  §512  ct  seq., 
and  Pol.  C.  #4047.) 

Sec.  2779.  Notice  of  and  application   to  construct  the   road. 

2780.  Special  meeting  of  supervisors. 

2781.  Hearing  the  application. 

2782.  Action  of  supervisors. 

2783.  Commissioners,  how  appointed  for  other  counties. 


SBC.  278-1. 

2785. 

2786. 

2787. 

2788. 

2789. 

2790. 

2791. 

2792. 

2793. 

2794. 

2795. 

2796. 

2797. 

2798. 

2799. 

2800. 

2801. 

2802. 

312  POLITICAL  CODE.  §  2779 

Laying  out  the  road. 

Compensation  of  commi.s.sioners,  map  and  report. 

Bi-anches  and  extension.s. 

Acquiring  lands  by  grant. 

Appropriation  of  damages  for  highways  taken. 

Application,  wlien  unnecessary. 

Orchards  and  gardens. 

Bridging  streams. 

One  road  corporation  using  the  roadbed  of  another. 

How  to  be  constructed. 

May  relay  with  what. 

Milestones  and  posts. 

Guide-posts. 

Inspection,  certificate,  and  coniiilciioii. 

Erection  of  gates,  etc. 

Abandonment  of  road,  and  what  becomes  of  it. 

County  may  purchase  road,  how. 

Appraisement  and  award,  how  made. 

Provisions  apply  to  all  toll  roads. 

Notice  of  and  application  to  construct  the  road. 

§2779.  Jf  all  lands  necessary  for  the  roadljcd  and  other  i)ur- 
l)0ses  are  not  otherwise  acquired  us  hereinafter  provided,  the 
company  proposing  to  construct  a  toll  road  through  any  part  of 
a  county  must  publish  a  notice  in  some  newspaper  published 
therein,  and  if  none,  then  in  the  newspjyier  nearest  thereto,  once 
in  each  week  for  six  successive  weeks,  specifying  the  character  of 
tlie  road,  the  termini,  and  each  town,  city,  or  village  through 
which  it  is  proposed  to  construct  it.  and  the  time  when-the  appli- 
cation hereinafter  required  will  be  made.  •  After  such  notice  is 
comi)lete,  on  the  day  si)ecified  therein,  application  must  W.  made 
to  the  board  of  sup(n'\'isors  of  the  county  for  authority  to  take 
the  necessary  land  and  to  construct  the  road  described  in  the 
notice. 

Enacted  March  12,  3S72. 
95  Cal.  Sr». 

Taking  of  tolls  by  wagon  road  corporation  :  See  Civ.  C.  §  514 
ct  seq. 

Special   meeting  of  supervisors.  ' 

S  2780.  On  application  therefor  the  president  of  the  board  of 
sujyervisors  may  call  a  siiecijil  meeting  (o  hear  tiie  ai)i)lication, 
(en  (hiys"  notice  Ihercor  being  served  on  cadi  of  Ihe  other  super- 
visors, either  personally  or  by  l<'a\  lug  i(  at  his  place  of  residence. 


§  L'TSO  rOLlTICAI,   CODK.  .">Kj 

if    abseut  ;    the    oxptnisc    of    such    special    mcctius;    aud    scrviuj,' 
notices  must  be  paid  by  the  applicant. 
Enacted  IMarch  12,  1872. 

Hearing  the  application. 

§  2781.  On  the  hearing,  all  residents  of  the  county  and  others 
interested  may  appear  and  be  heard.  'J'he  board  may  take  testi- 
mony, or  authorize  it  to  be  taken  by  any  officer  of  the  county, 
and  adjourn  the  hearing  from  time  to  time. 

Enacted  March  12,  1872. 

Action  of  supervisors. 

§  2782.  If  it  appears  to  the  board  of  supervisors  that  the 
public  interests  will  be  promoted  thereby,  a  majority  of  all  the 
members  thereof  may  grant  the  application,  and  by  order  author- 
ize the  company  to  take  the  real  property  necessary,  and  appoint 
two  commissioners  to  lay  out  the  road,  who  are  disinterested 
either  in  the  company  or  in  any  land  sought  to  be  taken  or 
adjoining  thereto.  A  copy  of  this  order  must  be  recorded  in  the 
county  clerk's  office  before  action  under  it  is  had. 

Enacted  March  12,  1872. 
123  Cal.  181. 

See,  also,  Pol.  C.  §§  4041  and  4047. 

Commissioners,  how  appointed  for  other  counties. 

§  2783.  If  the  route  extends  into  more  than  one  county  the 
application  must  specify  their  names,  and  the  board  of  super- 
visors of  each  of  such  counties  must  appoint  commissioners  to 
act  in  their  respective  counties  with  the  commissioner  and  sur- 
veyor of  the  company.  The  company  must  appoint  one  commis- 
sioner of  like  qualificatiou  as  those  appointed  by  the  board  of 
supervisors,  and  furnish  a  surveyor  to  accompany  and  act  witli 
them. 

p]nactcd  .March  12,  1S72. 

Laying  out  the  road. 

§  2784.  The  commissioners  must  take  the  oath  of  office,  and 
view  and  lay  out  the  road  as  in  their  judgment  will  best  promote 
the  public  interest.  They  must  hear  all  persons  interested,  and 
may  take  testimony  ;  they  may  determine  the  breadth  of  the  way, 
not  exceeding  one  hundred  feet,  except  where  the  company 
acquire  a  greater  breadth  by  grant.  They  must  make,  sign,  and 
certify  an  accurate  survey  aud  description  of  the  route  and  of 
the  laud  necessary   for   the   road,   buildings,   and   gates   in   each 

14— CL. 


314  POLITICAL   CODE.  §  2784 

county,   aud  record  the  same  in   the  office  of  the  county   clerk 
thereof.     When  the  breadth  of  the  road  is  not  fixed  by  the  com- 
missioners it  may  be  fixed  by  the  commissioner  of  highways  or 
the  board  of  supervisors  of  tlie  county. 
Enacted  March  12,  1872. 

Compensation  of  commissioners,   map  and  report. 

§  2785.  The  company  must  pay  to  each  commissioner  his 
expenses  aud  four  dollars  a  day  for  his  services ;  cause  their  sur- 
veyor to  make  the  map  of  the  proposed  road,  which,  when 
approved  and  certified  by  the  commissioners,  must  be  filed  with 
the  report  in  the  office  of  the  clerk  of  the  board  of  supervisors 
and  recorded. 

Enacted  March  12,  1872. 

Branches  and  extensions. 

§  2786.  The  directors  of  any  such  company  may,  with  the 
written  consent  of  the  holders  of  two  thirds  of  the  stock,  proceed 
in  the  manner  prescribed  by  the  preceding  seven  sections  to  con- 
struct branches  to  their  road,  or  to  extend  it  or  alter  any  part  of 
its  route  or  branches. 

Enacted  March  12,  1872. 

Acquiring  lands  by  grant. 

§  2787.  Lands,  roadways,  and  rights  to  the  use  of  land  neces- 
sary for  the  purposes  of  the  toll  road  or  its  appurtenances  may 
be  acquired  by  gift,  purchase,  transfer,  or  consent,  or  by  con- 
demnation as  hereinabove  provided  for.  If  after  any  toll  road 
company  has  actually  constructed  its  road  over  any  land,  adverse 
■  claim  bo  made  to  such  land,  the  company  may,  without  making 
the  application  to  the  board  of  supervisors  hereinabove  provided 
for,  acquire  the  right  of  way  for  said  road  over  such  land  by  con- 
demnation in  the  manner  provided  for  in  Title  VII  of  the  Code 
of  Civil  Procedure.  Lands  within  any  public  highway  may  be 
granted  by  the  board  of  supervisors  or  town  or  city  authorities 
on  such  terms  and  for  such  sums  as  may  be  agreed  upon. 

Amended  March  18,  1907;  stats.  1907,  p.  580. 

Note. — §  2787.  Sections  2787  and  2789  have  been  entirely 
recast,  revising  and  broadening  tlie  toll  road  law  to  conform  to 
the  growing  and  unforseen  needs,  complications,  and  improve- 
ments in  tlie  toll  road  business. 

Appropriation  of  damages  for  highways  taken. 

§  2788.  When  the  road  company  desires  the  exclusive  use  of 
lands  forming  part  of  a  highway,  and  such  use  is  granted  by  the 


§  2788  POLITICAL   CODE.  315 

supervisors,  the  damages  received  therefor  ure  to  be  paid  to  the 
road  fund  of  the  road  district  in  which  the  same  is  situated. 
Enacted  March  12,  1872. 

Application,  when  unnecessary. 

§  2789.  When  the  company  has  obtained  all  necessary  lands, 
roadways,  and  rights  of  way  in  any  county  by  gift,  purchase, 
transfer,  consent  or  agreement,  the  road  may  be  constructed  or 
completed  without  making  the  application  to  the  board  of  super- 
visors hereinbefore  provided  for ;  but  before  the  supervisors  fix 
the  tolls  to  be  taken  on  such  road,  an  accurate  survey  or  plat  of 
the  road  must  be  made  by  a  practical  surveyor,  signed  and  sworn 
to  by  the  president  and  secretary,  and  filed  for  record  in  the 
county  clerk's  office  of  each  county  through  which  the  road 
passes. 

Amended  March  IS,  1907 ;  stats.  1907,  p.  580. 
95  Cal.  So. 

Note. — §  2789.      See  note  to  §  2787. 

Orchards  and  gardens. 

§  2790.  No  such  road  must  be  laid  out  through  any  orchard 
of  four  years'  growth,  to  the  injury  of  the  fruit  trees,  or  any 
garden  of  four  years'  cultivation,  or  any  dwelling  house  or 
liuilding  connected  with  a  dwelling  house,  or  any  yard  or  in- 
closure  necessary  thereto,  without  the  consent  of  the  owner. 

Enacted  March  12.  1872. 

Bridging  streams. 

§  2791.  The  road  company  may  bridge  any  stream  or  river  on 
the  route  of  their  road,  when  not  within  the  limits  prescribed  by 
law  for  the  erection  and  maintenance  of  any  other  bridge ;  and 
in  bridging  streams  used  for  rafting  lumber  the  bridge  must  be 
so  constructed  as  not  to  prevent  or  endanger  the  passage  of  any 
raft  forty  feet  in  width. 

Enacted  March  12,  1872. 

One  road  corporation  using  tlie  roadbed  of  another. 

§  2792.  No  plank  road  company  must  construct  its  road  on 
the  road  of  another  company,  except  in  case  of  crossings,  with- 
out consent  of  the  latter. 

Enacted  March  12,  1872. 

How  to  be  constructed. 

§  2793.  Every  such  road  must  be  laid  out  at  least  fifty  feet 
wide.     The  track  of  plank   roads  must  be  constructed  eighteen 


31G  POLITICAL   COOK.  §  2793 

feet  wide,  of  tiiiihor,  pliuik.  or  other  hard  iiiahH-ial.  The  trark 
of  turnpikes  must  be  bedded  with  stone,  gravel,  or  such  other 
liard  material  found  on  the  line  thereof,  to  the  width  of  eighteen 
feet,  and  faced  with  broken  stone  or  gravel.  The  common  wagon 
road  must  be  graded  at  least  twelve  feet  in  width,  and  so  con- 
structed with  necessary  turnouts  as  to  permit  vehicles  to  pass 
each  other  conveniently.  Ail  the  roads  must  be  ditched  on  the 
sides  when  practicable,  and  have  proper  and  necessary  sewerage, 
and  be  so  constructed  that  vehicles  may  pass  on  and  off  the  track 
at  all  intersections  of  roads. 
Enacted  March  32,  1S72. 

May  relay  with   what. 

§  2794.  Every  company  that  has  once  laid  their  road  with 
l)huik  may  relay  it  or  any  part  of  it  with  broken  stone,  gravel, 
shells,  or  other  hai'd  maierial  whereby  they  keep  a  good,  sub- 
stantial road. 

Enacted  March  32,  3872. 

Milestones  and  posts. 

§  2795.  .V  milestone  or  post  nuist  ])e  maintained  at  every 
mile,  with  an  inscription  showing  the  distance  from  the  com- 
mencement of  tlie  road.  If  the  road  commences  at  the  end  of 
any  other  road,  or  inl(!rsects  therewilh.  having  milestones  or 
posts  on  whicli  the  distance  from  any  city  or  town  is  marked, 
a  continuation  of  that  distance  nuist  also  be  inscribed. 

P]uacted  March  12.   1S72. 

Guide-posts. 

§  2796.  A  guide-post  must  be  erected  at  every  place  where 
the  road  is  intersected  by  a  public  road,  with  an  inscription 
showing  the  name  of  the  place  to  which  such  intersecting  road 
leads,  in  the  direction  to  which  the  name  on  the  guide-post  points. 

Enacted  March  12,  1872. 

Inspection,  certificate,  and  completion. 

§  2797.  When  the  road,  or  three  consecutive  miles  thereof,  is 
completed,  the  commissioner  of  highways,  or  such  road  overseer 
or  other  person  thereto  specially  appointed  by  the  board  of 
supervisors  of  the  county,  must  inspect  the  road  when  requested, 
and  if  satisfied  that  the  road  conforms  to  the  requirements  of 
the  law,  must  certify  to  the  facts  and  file  the  certificate  in  the 
office  of  the  county  clerk  ;  for  such  service  four  dollars  per  day 
must  be  by  the  company  paid  to  the  inspector  or  commissioner. 


>;i(l  iirc  ('()ini)!( 

>lo(i  i 

1'  it  is 

■oll.'cird   Hi. ■!•(-, 

)11  I'di- 

more 

iiHSrclll  t\  (■    mil 

I'S   ;iri 

'  coin- 

§  2797  ,  POLITICAL  CODE.  317 

Wlieu  only  tlirc<>  milos  of  any  plank  i 
noi.  tiie  entire  lo.-ul,  lolls  must  not  he 
tinhi  one  year,  unless  tiie  roail  or  fiNc 
pleted  within  the  year. 
Enacted  March  12,  1872. 

Erection  of  gates,  etc. 

S  2798.  When  Ihe  eertilieate  of  completion  is  hied,  toilyjites 
may  he  erected  and  tolls  collected.  No  tollsale,  tollhouse,  or 
other  huilding-  must  he  put  up  within  ten  rods  of  (he  front  of  any 
dwelling  house,  barn,  or  outhouse,  williout  wi'illen  consenl  of 
the  owner  thereof. 

Enacted  ^larcli  12.  1ST2. 

Abandonment   of   road,   and   wiiat   becomes   of   it. 

S  2799.  Whenever  the  holders  of  two  thirds  of  the  stock  con- 
sent, the  directors  of  any  company  may  aliandon  the  whole  or 
any  part  of  their  road  at  either  or  both  ends,  by  written  sur- 
render thereof,  attested  by  their  seal,  and  acknowledged  by  the 
president  and  secretary  as  a  deed  or  grant  is  acknowledged.  au<l 
recorded  in  the  clerk's  office  of  each  county  where  the  sur- 
rendered road  lies  ;  thereafter  the  surrendered  road  belongs  to 
the  road  districts  in  which  it  lies,  but  tin*  company  may  conlinue 
to  take  toll  on  any  Ihi-ee  cipuseculive  miles  in  IiMiuth  noi  so  sur- 
rendered. 

]<hiact<Mi  March  12,  ls72. 

ill)  Cal.  2i;', :  122  Cal.  ;«8. 

I*L\|)iralion  of  franchises:    See  Pol.  ( '.  §  2(n!). 

County  may  purchase  road,  how. 

S  2800.  At  any  time  within  five  years  from  hling  the  cer( id- 
eate of  completion  of  any  road  constructed  under  the  provisions 
of  this  chapter,  or  at  any  time  after  any  toll  road  constructed 
and  under  operation  under  any  of  the  laws  of  this  state  has  been 
in  existence  for  ten  or  more  years,  a  county  within  which  the 
road  or  any  portion  thereof  is  located,  may  purchase  the  same  at 
a  fair  cash  valuation,  to  be  fixed  by  seven  commissioners,  all 
disinterested  i)ersons ;  three  to  be  ajipointed  by  the  board  of 
supervisors  of  the  county,  thre(>  by  the  owner  of  the  road,  and 
one  by  the  judge  of  the  superior  court  of  the  comity,  who  nnist 
estimate  the  fair  cash  value  of  the  road,  and  make  report  thereof, 
und(^r  oath,  (o  the  board  of  supervisors.  If,  within  three  months 
after  filing  the  report,  the  appraised  value  thereof  is  tendered  on 
behalf  of  the  county  to  the  owner  of  the  road,  or  his  authorized 


318  POI.ITICAL   CODK.  §  2800 

man.aging  agont,  in  gold  coin,  the  right  of  the  owner  to  take  tolls 
on  the  road  is  lerniinaled,  and  the  road  (o  become  llie  jn'opei'ty 
of  the  county. 

Amended  March  27,  1895 ;  stats.  18'J5,  p.  ll>t>. 
80  Cal.  341 ;  99  Cal.  213 ;  122  Cal.  338. 

Appraisement  and  award,  how  made. 

§  2801.  A  majority  of  the  board  of  commissioners  mentioned 
in  the  preceding  section  constitute  a  quorum,  and  the  concurrence 
of  a  majority  in  making  the  estimate  and  award  is  binding  upon 
the  road  owner,  if  approved  by  the  board  of  supervisors.  The 
commissioners  must  make  their  report  within  thirty  days  after 
their  appointment,  and  if  approved,  the  tender  of  the  amount  of 
the  appraisement  and  award  must  be  made  by  the  couuty  treas- 
urer; whether  the  owner  conveys  the  road  to  the  county  or  not, 
the  report  and  tender  operate  as  a  conveyance  to  the  county  of 
the  road  and  all  its  incidents  and  appurtenances. 

Enacted  March  12.  1872. 

Provisions  apply  to  all  toll  roads. 

§  2802.  The  provisions  of  this  article  apply  to  all  toll  roads, 
whether  owned  by  companies,  corporations,  or  natural  persons, 
and  include  toll  roads  constructed  or  to  be  constructed  and 
operated  for  the  use  of  light  vehicles  for  the  carriage  of  per- 
sons, or  for  the  use  of  automobiles  and  other  horseless  vehicles. 

Amended  March  22,  1909;  stats.  1909,  p.  GG9 ;  in  effect  in 
sixty  days. 

Note. — §  2802.  Extends  the  provisions  of  the  article  on  toll 
loads  for  automobiles  and  other  horseless  vehicles. 

See,  also.  Civ.  C.  §  524,  and  Pol.  C.  §  4047. 

Article  II. 
Use    of    Toll    Roads,    and    Obstructions    Thereon. 
(Wagon  road  corporations:   See  Civ.  C.  §512  ct  seq.) 

Sec.  2814.  Persons  exempt  from  tolls. 

2815.  Encroachments,  how  removed. 

2816.  Who  liable  for  penalty,  and  what. 

2817.  Action  for  penalty  or  trespass. 

Persons  exempt  from  tolls. 

§  2814.  The  following  person.?,  and  none  other,  are  exempt 
from  payment  of  toll  on  wagon,  turnpike,  or  plank  roads : 

1.  Persons  going  to  or  from  any  funeral,  and  all  funeral  pro- 
cessions ; 


§  2814  POLITICAL   COI>E.  319 

2.  Troops  in  actual  service  of  the  state  or  of  the  United 
States,  and  persons  going  to  or  fi-om  a  military  training  M-hich 
by  law  they  are  required  to  attend  ; 

3.  Persons  going  to  or  from  the  courthouse  in  obedience  to  a 
subpoena  in  a  criminal  action  ; 

4.  Persons  living  within  one  mile  of  any  gate  by  the  most 
usually  traveled  road  may  pass  it  at  one  half  toll,  when  not 
engaged  in  the  transportation  of  other  or  the  property  of  others ; 

5.  Farmers  living  on  their  farms  within  one  mile  of  any  gate 
by  the  most  usually  traveled  road  may  pass  free  when  going  to 
or  from  their  work  on  such  farms; 

G.  School  children  attending  school  within  three  miles  of 
their  parents'  or  boarding  house ; 

7.  The  road  overseer  of  the  road  district  through  which  road 
passes,  or  the  commissioners  of  highways,  for  the  purpose  of 
inspecting  the  condition  of  the  road. 

Amended  March  12,  1880;  stats.  1880.  p.  4. 

Evasion  of  tolls,  penalty :  See  Civ.  C.  §  519,  Pen.  C.  §  389. 

Penalty  for  taking  unlawful  tolls :  See  Civ.  C.  §  514 ;  see, 
also,  Civ.  C.  §  515. 

Encroachments,  how  removed. 

§  2815.  On  application  by  an  ofhccr  of  the  company,  the 
commissioner  of  highways,  or  road  overseer  of  the  district  where 
I  he  same  exists,  may  inquire  into  any  encroachment  upon  the 
lands  of  the  company  used  for  the  purposes  of  the  road,  caused 
by  fence,  building,  or  otherwise ;  and  he  must,  if  he  finds  it  does 
exist,  require  or  cause  its  removal  as  provided  for  highway 
encroachments  in  article  eight,  chapter  two.  of  this  title. 

Enacted  March  12,  1872. 

Who  liable  for  penalty,  and  v/hat. 

§2816.  Every  person  who,  having  (lie  control  thereof,  neg- 
lects to  remove  an  encroachment  after  Ix'ing  notified  thereof, 
or  permits  the  same  to  remain  after  notice,  unless  he  imme- 
diately commences,  and  diligently  prosecutes  its  removal  to  com- 
pletion, is  liable  to  a  penalty  of  five  dollars  for  every  day  of  such 
neglect  or  failure. 

Enacted  March  12,  1872. 


.■'.■_'!•  POLITICAL  CODIi.  §  2S17 

Action  for  penalty  or  trespass. 

§  2817.  Au  action  for  the  pounllies  givpii  by  this  chaptt.')-,  ami 
lor  any  livspass  on  or  injury  to  such  road,  may  be  maintained 
in  th«  c-onnty  where  the  act  was  done,  or  in  that  wliere  the 
defendant  resides,  by  the  company. 

Kiiacle.l  March  12,  1S72. 


Article  III. 
Inspection  and  Repairs. 

.Sec.  2  827.  Inspection  of  roads,  and  repairs. 

2828.  Closing  gates,  and  penalty. 

2829.  Defects  in  roads  to  be  reported  to  whom. 

2830.  Enforcing  obedience  to  notice  and  requirement. 
2  831.  Fees  of  commissioner  or  overseer. 

2832.     Pack-trails  in  mountain  districts. 

Inspection  of  roads,  and  repairs. 

§  2827.  Every  commissioner  of  highways  or  road  overseer  of 
tlie  district  to  whom  complaint  in  writing  is  made,  that  any 
part  of  a  wagon,  turnpike,  or  plank  toll  road  in  his  county  or 
district,  or  any  part  of  such  road,  the  gate  nearest  to  which  is 
in  his  county  or  district,  is  out  of  repair,  must  examine  it  with- 
out delay,  and  give  notice  of  the  defect,  particularly  describing 
the  .same,  to  the  person  attending  the  gate  nearest  thereto ;  if  the 
necessary  repair  is  not  made  or  defect  remedied  within  three 
days  after  such  notice  i.s  given,  the  commissioner  or  road  over- 
seer may  order  such  gate  to  be  thrown  open. 

Enacted  March  12,  1S72. 

Closing  gates,  and  penalty. 

§  2828.  A  gate  so  ordered  to  be  tlinnvn  open  must  not  be  shut 
nor  any  toll  collected  thereat  until  the  commissioner  of  highways 
or  road  overseer  ordering  it  shut  grants  a  certificate  that  the 
road  is  in  sufKcient  repair,  and  that  the  gate  ought  to  be  closed. 
The  company  and  their  gatekeeper,  or  other  employee,  violating 
or  permitting  the  violation  of  this  section,  or  the  order  made 
under  the  ijreceding  section,  nvo  eacli  lial^le  in  a  ])enally  of 
twenty-five  dollars  for  cacli  olTense.  to  be  recovered  by  tlio  party 
aggrieved. 

Enacted  March  12,  1872. 


§  2S20  POLITIfiAL  fODE.  o2l 

Defects  in  road  to  be  reported  to  whom. 

§  2829.  Every  commissioner  of  highways  or  road  overseer 
who  discovers  a  defect  in  any  toll  road  in  his  county  or  district, 
or  a  gate  placed  in  a  situation  contrary  to  law,  must  give  written 
notice  thereof  to  one  or  more  of  the  directors  or  managing 
agents  of  the  company,  requiring  the  defective  road  to  be 
repaired,  or  the  gate  to  be  removed,  within  a  specified  time  ;  and 
may  order  that  in  the  meantime  such  gates  as  he  specifies  be 
thrown  open. 

Enacted  March  12,  1872. 

Enforcing  obedience  to  notice  and  requirement. 

§  2830.  If  the  notice  and  requirements  are  not  obeyed,  the 
conmiissioner  of  highways  or  road  overseer  must  make  imme- 
diate complaint  to  the  district  attorney  of  the  county,  who  must 
prosecute  the  company  therefor  in  the  name  of  the  people  for  so 
suft'ering  the  road  to  be  out  of  repair,  or  of  having  placed  any 
gate  in  a  situation  contrary  to  the  law ;  and  if  convicted  thereof, 
the  company  must  be  fined  not  exceeding  two  hundred  and  fifty 
dollars. 

Enacted  March  12,  1872. 

Fees  of  commissioner  or  overseer. 

S  2831.  The  commissioner  of  highway.^  or  road  over.seer  com- 
plaining to  the  district  attorney,  or  who  makes  inspection  and 
discovers  defects  in  the  road,  is  entitled  to  three  dollars  for  each 
day's  services  in  inspecting  the  road,  or  necessarily  expended  in 
pro.secuting  the  action  therefor,  to  be  paid  in  case  of  conviction 
as  costs.  When  no  action  is  had,  but  repairs  are  made,  or  gate 
removed,  on  the  inspection  and  requirement  of  the  commissioner 
of  highways  or  road  overseer,  the  toll  gatherer  nearest  the  road 
so  out  of  repair,  or  the  gate  to  be  moved,  must  pay  the  fees  here- 
inbefore specified  out  of  the  tolls  collected  ;  if  he  refuse  to  pay 
the  same,  the  same  may  be  recovered  by  action,  with  costs. 

Enacted  March  12.  1872. 

Pack-trails  in  mountain  districts. 

§  2832.  The  boards  of  supervisors  of  the  several  counties  of 
this  state  are  hereby  authorized  to  permit  the  toll  road  com- 
panies heretofore  or  which  may  hereafter  be  organized  under 
the  provisions  of  this  code,  for  the  purpose  of  constructing  toll 
roads  within  the  mountain  districts  of  this  state,  to  first  con- 
struct on  the  line  of  their  proposed  toll  road  a  pack  trail  for  the 


'•V2'2  roTJTiCAL  COOK.  §  2882 

accommodation  of  pack  trains  and  horsemen,  and  to  collect  tolls 
thereon  ;  the  board  of  supervisors  shall  fix  the  amount  of  license 
to  be  paid  and  tolls  to  be  collected  on  such  pack  trail,  and  that 
no  such  permit  or  frauchis^e  shall  be  granted  for  a  longer  period 
than  two  years. 

Ameiuh'd  March  30.  1874:  amendts.  1873-4,  p.  131. 


CIIAl'TEU  IV. 

PUBLIC    FERRIES    AND    TOLL    BRIDGES. 

Art.   I.     General  provisions.      §§  2843-285S. 
II.      Toll  bridges.      §§  2870-2881. 
III.      Toll  ferries.      §§  2892-2895. 

Article  I. 

General   Provisions. 

(Bridge  and  ferry  corporations:  See  Civ.  C  §§588  to  631; 
see,  also,  Pol.  C.  §§3378,  4041;  also  "Bridges,"  statutes  at 
large,  Appendix.) 

Sec.  2843.  What  board  to  grant  authority  to  construct. 

2844.  Notice  must  be  i^roved. 

2845.  Duty  of  board  of  supervisors  granting  autliority. 
284G.  License  tax  and  rate  of  tolls,  how  fixed. 

2  847.  Report  of  bridge  or  f ferry  owner  or  keeper. 

2848.  Inquiry  of  board  of  supervisors  fixing  tolls. 

2849.  When  to  direct  license  to  issue. 

2850.  Bond,  conditions  and  execution. 

2851.  When  bridge  unites  two  counties. 

2852.  Supervisors  shall  not  act  if  interested. 

2853.  Toll  bridge  or  ferry  within  one  mile  of  anotlier,  when. 

2854.  Owner  of  land  preferred  to  build  bridge  or  ferry. 

2855.  How  lands  are  acquired  for  use  of  bridge  or  ferry. 

2856.  Must  post  rates  of  toll. 

2857.  Revenue  derived  from  license,  how  disposed  of. 

2858.  To  keep  banks  in  repair. 

What   board   to  grant  authority  to  construct. 

§  2843.  When  authority  to  construct  a  toll  bridge  or  to  erect 
and  keep  a  ferry  over  waters  dividing  two  counties  is  desired, 
application   mast  be  made  to  the  board   of  supervisors  of   that 


8  284r5  POLITICAL  CODE.  n^rj 

county   situated    ou    the    left   bank   descending   such   bay,    river, 
creek,  slongli,  or  arm  of  the  sea. 

Enacted  March  12,  1872. 

132  Cal.  109 ;  134  Cal.  022  ;  130  Cal.  49. 

Maintaining  toll  bridge  or  ferry  without  authority  :  See  Pen  C. 
§  380. 

Notice  must  be  proved. 

j  2844.  The  board  of  supervisors  must  not  grant  authority 
to  construct  or  erect  a  toll  bridge  or  ferry  until  the  notice  of 
such  intended  application  has  been  given  as  respectively  requii-ed 
in  articles  two  and  three  of  this  chapter. 

Enacted  March  12.  1872. 

Duty  of  board  of  supervisors  granting  authority. 

§  2845.  The  board  of  supervisors  granting  authority  to  con- 
struct a  toll  bridge  or  to  keep  a  public  ferry  must  at  the  same 
time  : 

1.  Fix  the  amount  of  a  penal  bond  to  be  given  by  the  person 
or  corporation  owning  or  taking  tolls  on  the  bridge  or  ferry 
for  the  benefit  of  the  county,  and  all  persons  crossing  or  desiring 
to  cross  the  same,  and  provide  for  the  annual  renewal  thereof ; 

2.  Fix  the  amount  of  license  tax  to  be  paid  by  the  person 
or  corporation  for  taking  tolls  thereon,  not  less  than  three  nor 
over  one  hundred  dollars  per  month,  payable  annually; 

3.  Fix  the  rate  of  tolls  which  may  be  collected  for  crossing 
the  bridge  or  feriy.  which  must  not  raise  annually  an  income 
exceeding  fifteen  per  cent  on  the  actual  cost  of  the  construction 
or  erection  and  maintenance  of  the  bridge  or  ferry  for  the  first 
year,  nor  ou  the  fair  cash  value,  together  with  the  repairs  and 
maintenance  thereof  for  any  succeeding  year  ; 

4.  Make  all  necessary  orders  relative  to  the  construction, 
erection,  and  business  of  licensed  toll  bridges  or  ferries  which 
they  have  by  law  the  power  to  make.  The  board  of  supervisors 
may,  at  any  time  they  see  fit,  authorize  and  mg,intain  fords 
across  any  water  within  any  distance  of  any  licensed  toll  bridge 
or  ferry. 

Enacted  March  12,  1872. 

License  tax  and  rate  of  tolls,  how  fixed. 

§  2846.  The  license  tax  and  rate  of  toll  fixed  as  provided  in 
the  preceding  section  must  not  be  increased  or  diminished  dur- 
ing the  term  of  twenty  years,  at  any  time,  unless  it  is  shown 


324  POLITICAL  CODK.  §  '284t; 

to  the  satisfaction  of  the  board  of  supervisors  that  the  receipts 
from  tolls  in  any  one  year  is  disproportionate  to  the  cost  of 
construction  or  erection,  or  the  fair  cash  value  thereof,  together 
with  the  cost  of  all  necessary  repairs  and  maintenance  of  the 
bridge  or  ferry.  The  license  tax  fixed  by  the  board  of  supervisors 
must  not  exceed  ten  per  cent  of  the  tolls  annually  collected. 

Enacted  March  12,  1S72. 

Collection  of  delinquent  tax:  See  act  of  March  21,  1872,  title 
"Ijicenses,"  statutes  at  large.  Appendix. 

Report  of  bridge  or  ferry  owner  or  keeper. 

S  2847.  Every  owner  or  keeper  of  a  toll  bridge  or  ferry  must 
report  annually  to  the  board  of  supervisors  from  which  his 
license  is  obtained,  under  oath,  the  following  facts: 

1.  The  actual  cost  of  the  construction  or  erection  and  equip- 
ment  of  the  toll  bridge  or  ferry  ; 

2.  The  repairs  made  during  the  preceding  year,  and  the  actual 
cost  thereof ; 

3.  The  expense  of  labor  and  hire  of  agents,  and  other  costs 
necessarily  incurred  in  and  about  the  conduct  of  their  business ; 

4.  The  amount  of  tolls  collected  ;  and, 

0.  The   estimated   actual   cash   value   of   the   bridge   or  ferry, 
exclusive  of  the  franchise. 
Enacted  March  12,  1872. 

Inquiry  of  board  of  supervisors  fixing  tolls. 

S  2848.  Whenever  the  board  of  supervisors  are  about  to  fix 
Ihe  license  tax  and  rate  of  tolls  on  a  bridge  or  ferry,  they  must 
make  inquiry  into  the  present  actual  cash  value  and  the  cost 
of  all  necessary  repairs  and  maintenance  thereof,  and  for  that 
purpose  may  examine,  under  oath,  the  owner  or  keeper  of  the 
same,  and  other  witnesses,  and  the  assessed  value  of  the  bridge 
or  ferry  on  the  assessment  roll  of  the  county.  When  the  esti- 
mate of  the  board  is  made,  if  the  same  is  not  agreed  to  by  the 
owner  or  keeper  of  the  bridge  or  ferry,  the  same  must  be  fixed 
by  three  commissioners,  one  to  be  appointed  by  the  board  of 
supervisors,  one  by  the  owner  and  keeper,  and  the  third  by  the 
county  judge,  who  must  hear  testimony  and  fix  such  value  and 
f^ost  according  to  the  facts,  and  report  the  same  to  the  board  of 
supervisors,  under  oath.  In  all  estimates  of  the  fair  cash  value 
of  the  bridge  or  ferry,  the  value  of  the  franchise  must  not  bo 
taken  into  consideration. 

Enacted  March  12,  1S72. 


§  2849  POLITICAL  CODE.  325 

When  to  direct  license  to  issue. 

§2849.  When  the  cost  of  const ructiou  or  erection  and  equip- 
ment of  the  bridge  or  ferry,  or  the  fair  cash  value  thereof, 
together  with  the  cost  of  needed  repairs  and  the  conduct  and 
maintenance  of  the  same,  is  ascertained  and  fixed  for  tlie  pre- 
ceding year,  the  board  must  on  such  ascertained  amount  fix  the 
annual  license  tax,  rate  of  tolls,  and  the  amount  of  the  penal 
bond,  and  direct  a  license  to  be  issued  by  the  clerk. 

Enacted  March  12,  1872. 

Bond,  conditions  and  execution. 

§  2850.  The  bond  required  of  the  owner  or  keeper  of  the  toll 
bridge  or  ferry  must  be  in  the  sum  fixed  by  the  board  of  super- 
visors, with  one  or  more  sureties,  and  conditioned  that  the 
toll  bridge  or  ferry  will  be  kept  in  good  repair  and  condition, 
and  that  the  keeper  will  faithfully  comply  with  the  laws  of  the 
state  and  all  legal  orders  of  the  board  of  supervisors  regulating 
the  same,  and  pay  all  damages  recovered  against  him  by  any 
person  injured  or  damaged  by  reason  of  delay  at  or  defect  in 
such  bridge  or  ferry,  or  in  any  manner  resulting  from  a  non- 
compliance with  the  laws  or  lawful  orders  regulating  the  same. 
The  bond  must  be  approved  by  the  president  and  filed  with  the 
clerk  of  the  board  of  supervisors. 

Enacted  March  12,  1872. 

Violation  of  conditions  of  keeping  ferry :   See  Pen.  C.  §  387. 

Wl-ien  bridge  unites  two  counties. 

§  2851 .  The  license  tax  for  a  ferry  or  bridge  connecting  two 
(•(HUitios  must  be  paid  to  the  treasurer  of  the  county  granting 
it,  and  the  license  issued  by  the  auditor  thereof ;  but  the  treas- 
urer of  such  county  must  pay  to  the  treasurer  of  the  county 
in  which  the  other  end  or  landing  of  the  bridge  or  ferry  is 
located  one  half  the  sum  so  received  annually,  or  the  auditor 
may  issue  the  license  on  filing  with  him  receipts  for  their 
respective  halves  of  the  tax  taken  from  the  treasurer  of  each 
of  the  two  counties. 

Enacted  March  12,  1872. 

Supervisors  sliall  not  act  if  interested. 

§2852.  When  a  supervisor  is  interested  in  an  application  to 
erect,  construct,  or  take  tolls, -or  alter  tolls  on  a  brid^o  or  ferry, 
he  shall  not  act  in  any  of  such  matters. 

Amended  April  3,  1880;  amendts.  1880,  p.  2:;. 

See,  also,  Pol.  C.  §  4323,  for  proceedings  when  majority  of 
board  is  interested. 


:V2(i  POLITICAL  CODE.  §  2853 

Toll  bridge  or  ferry  within  one  mile  of  another,  wlien. 

§2853.  No  toll  bridge  or  ferry  must  be  established  within 
oue  mile  immediately  above  or  below  a  regularly  established 
ferry  or  toll  bridge,  unless  the  situation  of  a  town  or  village, 
the  crossing  of  a  public  highway,  or  the  intersection  of  some 
creek  or  ravine  renders  it  necessary  for  public  convenience. 
In  addition  to  the  public  notice  hereinafter  required,  notice  of 
intention  to  apply  for  authority  to  erect  a  toll  bridge  or  ferry, 
as  in  this  section  provided,  must  be  served  upon  the  proprietor 
of  the  ferry  or  toll  bridge  already  established  at  least  ten  days 
prior  thereto,  giving  the  time  and  place  and  grounds  of  such 
application. 

Enacted  March  12,  1872. 

114  Cal.  49G ;  134  Cal.  58. 

Owner  of   land   preferred  to   build  bridge  or  ferry. 

§  2854.  The  owner  of  land  on  either  side  of  the  waters  to 
be  crossed,  and  the  owner  of  the  land  on  the  left  bank  descend- 
ing over  the  owner  of  land  on  the  right  bank,  is  entitled  to 
preference  in  procuring  authority  to  construct  a  bridge  or  ferry  ; 
but  where  such  owner  fails  or  neglects  to  apply  for  such  author- 
ity within  a  reasonable  time  after  the  necessity  therefor  arises, 
the  board  of  supervisors  may  grant  such  authority  to  another. 

Enacted  March  12.  1872. 

How  lands  are  acquired  for  use  of  bridge  or  ferry. 

§2855.  When  there  are  lands  necessary  for  the  construction, 
erection,  or  use  of  such  bridge  or  ferry  which  can  not  be  pro- 
cured by  agreement  between  the  owner  or  corporation  and  the 
landowner,  the  right  of  way  and  all  other  lands  necessary  for 
the  use  and  construction  or  erection  thereof  may  be  acquired 
by  condemnation. 

Enacted  March  12,  1872. 

Must  post  rates  of  toll. 

§  2856.  Every  licensed  toll  bridge  or  ferry  must  have  the 
rates  of  toll,  as  fixed  by  the  board  of  supervisors,  printed  or 
written,  posted  up  in  some  conspicuous  place  on  or  near  the 
bridge  or  ferry. 

Enacted  March   12,  1872. 

Revenue  derived  from  license,  how  disposed  of. 

§  2857.  The  proceeds  of  the  license  tax  on  ferries  and  toll 
bridges  must  be  paid  into  the  county   treasury   for  the  use  of 


§  28r»7  POLITICAL  CODE.  327 

roads  and  highways,  or  may  bo  used  by  the  board  of  super- 
v'sors  at  any  time  in  tlie  purchase  of  toll  roads  and  toll 
bridges. 

Enacted  March  12,  1872. 

To  keep  banks  in  repair. 

§  2858.  All  ferry  and  toll  bridge  keepers  must  keep  the 
banks  of  the  streams  or  waters  at  the  landings  of  their  ferries 
or  bridges  graded  and  in  good  order  for  the  passage  of  vehicles. 
For  every  day  compliance  herewith  is  neglected  twenty-five  dol- 
lars is  forfeited,  to  be  collected  for  the  use  of  the  road  fund 
of  the  county. 

Enacted  March  12,  1872. 

Article  II. 

Toll    Bridges. 

(See,  also',  Pol.  C.  §§  3378  and  4041,  and  statutes  at  large, 
Appendix,  heading  "Bridges.") 

Sec.  2870.  Application  for  leave  to  construct. 

2871.  Hearing  application. 

2872.  Action  of  board  of  .supervisors. 

2873.  What  board  of  supervisors  may  require. 

2874.  Use  of  highways. 

2875.  How  constructed  over  navigable  waters. 
287G.  Supervi-sors  may  regulate. 

2877.  Channel  of  streams  navigable  by  rafts  to  be  kept  clear. 

2878.  Completion  of  bridge,  rate  of  toll,  and  license  tax. 

2879.  Persons  exempt. 

2880.  Penalty  for  avoiding  tolls. 

2881.  County  may  purchase  toll  bridge. 

Application    for    leave   to    construct. 

§  2870.  Every  applicant  for  authority  to  construct  a  toll 
bridge  must  publish  a  notice  in  at  least  one  newspaper  in  each 
county  in  which  the  bridge  or  any  part  of  it  is  to  be,  or  if  no 
paper  is  published  therein,  in  an  adjoining  county,  once  in  each 
week  for  six  successive  weeks,  specifying  the  location,  the 
length  and  breadth  of  the  bridge,  and  the  time  at  which  the 
application  hereinafter  required  will  be  made.  After  notice 
is  given  application  must  l)e  made  to  the  board  of  "supervisors 
of  the  proper  county,  at  any  mei'tins  specified  in  the  notice, 
for  authority  to  construct  it. 

Enacted  March  12,  1872. 


328  POLITICAL  CODE.  §  2871 

Hearing   application. 

§2871.  On  the  hearing,  any  person  may  appear  and  be 
heard.  The  board  may  take  testimony,  or  authorize  it  to  be 
taken  by  any  judicial  officer  of  the  county  ;  and  it  may  adjourn 
the  hearing  from  time  to  time.  A  copy  of  the  articles  of  incor- 
poration, certified  by  the  secretary  of  state,  or  by  the  clerk 
where  they  are  filed,  must  be  attached  to  and  filed  with  the 
application  if  made  by  a  corporation. 

Enacted  March  12,  1872. 

Articles  of  incorporation  :   See  Civ.  C.  §  289  ct  seq. 
Action  of  board  of  supervisors. 

§  2872.  If  the  board  are  of  opinion  that  the  public  interests 
will  be  promoted  thereby,  it  may,  by  the  assent  of  a  majority 
of  all  the  members  of  the  board,  grant  the  application  by  an 
order  entered  in  its  minutes,  and  particularly  describing  the 
bridge.  The  applicant  must  cause  a  certified  copy  of  the  order, 
with  a  copy  of  the  application,  to  be  recorded  in  the  office  of 
the  clerk  of  the  county,  before  proceeding  under  it;  provided, 
that  the  board  of  supervisors  shall  not  have  power  to  license 
bridges  across  the  Sacramento  or  San  Joaquin  rivers,  the 
Suisun  Bay,  or  Carquinez  Straits,  the  Petaluma,  Napa,  or 
Sonoma  creeks,  except  at  points  above  the  head  of  navigation 
on  said  streams. 

Amended  March  14,  1878 ;  amendts.  1877-8,  p.  52. 
12.3  Cal.  180. 

Maintaining  bridge  without  authority  :   See  Pen.  C.  §  380. 

What  board  of  supervisors  may  require. 

S  2873.  The  board  of  supervisors  may,  at  the  time  of  grant- 
ing authority  to  construct  a  toll  bridge,  by  order,  require  the 
bridge  to  be  constructed  within  a  certain  time,  to  be  of  a  cer- 
tain width,  character,  or  description,  and  to  be  constructed  of 
certain  materials,  which  order  must  be  complied  with  by  the 
owner  or  corporation  constinicting  the  same  before  license  to 
take  tolls  is  issued. 

Enacted  March  12,  1872. 
Use  of  higliways. 

§  2874.  The  corporation  or  bridge  owner  may  use,  in  such 
manner  as  prescribed  by  the  hoard,  so  much  of  any  pul)lic  road 
on  either  side  of  the  stream  or  waters  as  may  be  necessary 
for  constructing  and  maintaining  the  bridge  and  tollhouses. 

Enacted  March  12,  1872. 
123  Cal.  181. 


§  287.J  POLITICAL  CODE.  329 

How   constructed   over    navigable   waters. 

S  2875.  .Ml  ln-idut's  constructod  under  this  cliaiitcr  crosyiii},' 
iinvignhk'  strciinis  must  be  so  constructed  as  not  to  obstruct 
navigation,  and  must  have  a  draw  or  swing  of  sufficient  space 
or  si)an  to  permit  the  safe,  conveui(>nt,  and  expeditious  passage 
at  all  times  of  any  steamer,  vessel,  or  raft  which  may  navi- 
gate the  stream  or  water  bridged. 

Enacted  March  12,  1S72. 
79  Cal.  34S. 

Supervisors  may  regulate. 

§  2876.  The  board  of  supervisors  may,  by  order,  regulate  and 
govern  the  amount  of  weight  and  number  of  animals  tliat  may 
be  driven  on  to  a  toll  bridge  at  any  one  time,  and  prescribe 
rules  for  the  government  of  the  draws  or  swings  and  attend- 
ance of  tlie  same,  and  prescribe  penalties  for  disobedience  of 
such  rules. 

Enacted  March  12.  1872. 

Protection  of  toll  bridge.s :  See  Pol.   C.   §  2938. 

Crossing  toll  bridge  faster  than  a  walk  :   See  I'en.  G.  §  388. 

Cliannel  of  streams   navigable  by   rafts  to   be   kept  clear. 

S  2877.  Any  one  bridging  a  stream  navigated  or  na\igable 
must  at  all  times  keep  the  channel  above  and  below  the  bridge 
clear  from  all  deposits  occasioned  by  its  erection  and  preju- 
dicial to  such  navigation,  and  is  liable  to"  pay  to  all  persons 
unreasonably  hindered  or  delayed  in  passing  such  bridge  with 
rafts  or  vessels  all  damages  sustained  thereby. 

Enacted  March  12.  1872. 

.Completion    of   bridge,    rate   of   toll,    and    license   tax. 

S  2878.  Every  bridge  erected  under  these  provisions  must 
]i:i\e  good  and  substantial  railings  or  sidings,  at  least  four  and  a 
half  feet  high.  When  a  bridge  i^  com])leted,  and  a  certificate 
that  it  is  so,  and  is  safe  and  convenient  for  tlie  public  use,  is 
signed  l)y  the  commissioner  of  highways  or  president  of  the 
board  of  supervisors,  and  filed  in  the  county  clerk's  office  in  the 
county  or  counties  in  which  it  is  located,  the  directors  or  owner 
may  erect  a  tollgate  at  such  bridge,  and  require  such  tolls  as  the 
boards  of  siijiervisors  of  the  county  or  counties  from  tiin<>  to  time 
jirescribe.     A   license  therefor  must  be  issued  b\-   the  aiidilor  of 


330  POLITICAL    CODE.  §  2S79 

the  county  on  giving  the  necessary  bond  and  paying  the  license 
tax  fixed  therefor. 

Enacted  March  12,  1872. 

Delinquent  license  tax :  See  "License  Tax,"  statutes  at  large, 
Appendix,  for  act  of  March  21,  1872,  relative  to  collection. 

Persons   exempt. 

§  2879.  Any  person  going  to  or  from  a  funeral,  school,  per- 
forming highway  labor,  or  attending  a  military  parade  or  court 
which  by  law  he  is  required  to  attend  as  a  witness  in  a  criminal 
case,  is  exempt  from  the  payment  of  tolls. 

Enacted  March  12,  1872. 

Penalty  for  avoiding  tolls. 

§  2880.  Any  person  liable  to  pay  toll  forcibly  or  fraudulently 
passing  the  gate  of  a  toll  bridge  without  paying  the  toll  is  liable 
to  a  penalty  of  ten  dollars  in  addition  to  the  damages  caused,  to 
be  reco\ered  by  the  owner. 

Enacted  March  12,  1872. 

See,  also,  Pen.  C.  §  389,  for  evasion  of  toll. 

County   may   purchase  toll    bridge. 

§  2881.  Within  the  same  time,  in  like  manner,  and  to  the 
same  effect  as  toll  roads  are  purchased  under  the  provisions  of 
sections  twenty-eight  hundred  and  two  and  twenty-eight  hundred 
and  three,  the  county  or  counties,  .iointly  acting,  in  which  the 
same  is  situated,  may  purchase  a  loll  bridge  constructed  under 
the  provisions  of  this  chapter. 

Enacted  March  12,  1872. 

Ahticlk  111. 
Toll   Ferries. 

(See,  also,  I'ol.  0.  SS  3378  and  4011.) 
Sec.  2892.     Application  for  leave  to  erect,  :uid  notice. 

2893.  Duty  of  board  of  supervisors. 

2894.  Powers  of  board  of  supervisors. 

2895.  Penalties,  how  disposed  of. 

Application   for   leave   to  erect,   and   notice. 

§  2892.  Every  applicant  for  authority  to  erect  and  take  tolls 
on  a  public  ferry  must  publish  a  notice  in  at  least  one  newspaper 
in  each  county  in  which  the  ferry  is  or  touches,  or  if  there  is  no 
newspaper  published  therein,  then  in  one  published  in  an  adjoin- 


§  2892  POLITICAL  CODE.  331 

ing  county,  and  by  posting  three  notices  in  three  public  places 
in  the  township  for  four  successive  weeks,  specifying  the  location 
and  the  time  and  place  when  and  where  the  application  will  be 
made.  After  notice  is  given  application  must  be  made  in  writing, 
under  oath,  to  the  board  of  supervisors  of  the  proper  county,  the 
landings  of  the  proposed  ferry  must  be  described,  and  the  names 
of  the  owners  thereof  given,  if  known  ;  and  if  the  applicant  is 
not  the  owner  of  the  laud,  that  notice  of  the  application  has  been 
served  on  the  owner  thereof  at  least  ten  days  prior  to  the  appli- 
cation. 
Enacted  March  12,  1872. 

Duty  of  board  of  supervisors. 

§  2893.  At  the  hearing,  proof  of  giving  the  notice,  as  required 
by  the  preceding  section,  must  be  made,  and  any  person  may 
appear  and  contest  the  application.  If  the  board  finds  that  the 
ferry  is  either  a  public  necessity  or  convenience,  and  that  the 
applicant  is  a  suitable  person,  and  by  reason  of  ownership  of  the 
landing  or  failure  of  the  owner  thereof  to  apply  is  entitled 
thereto,  authority  to  erect  and  take  tolls  on  the  ferry  may  be 
granted  to  him  for  the  term  of  twenty  years. 

Enacted  March  12,  1872. 
134  Cal.  625. 

Maintaining  ferry  without  authority  :   See  Pen.  C.  §  386. 

Failure  to  pay  license  tax :  See  act  of  March  21,  1872, 
"Licenses,"  statutes  at  large,  Appendix,  for  proceedings  to  col- 
lect. 

Powers  of   board   of  supervisors. 

§  2894.  The  board  of  supervisors  raaj'  make  all  needful  rules 
and  regulations  for  the  government  of  ferries  and  ferry  keepers, 
prescribing : 

1.  How  many  boats  must  be  kept,  their  character,  and  how 
propelled ; 

2.  The  number  of  hands,  boatmen,  or  ferrymen  to  be  employed, 
and  rules  for  their  government ; 

3.  How  many  trips  to  be  made  daily  ; 

4.  When  and  under  what  circumstances  to  make  trips  in  tlie 
nighttime ; 

5.  Who  may  be  ferried  free  of  toll ; 

6.  In  what  cases  of  danger  or  peril  not  to  cross ; 

7.  I'enalties  for  violation  of  regulations ; 

8.  In  case  of  steamboats,  the  rate  of  speed ; 


332  POLITICAL  CODE.  §  2894 

!).  The  melliod  of  :iud  preference  in  loadin.n-  and  crossing ;  and, 
10.   How    ami    l)y    whom    action    must    be    broiiglit    to    recover 
penalties. 

Enacted  lAfarch    12.  1S72. 

Penalties,    how   disposed   of. 

S  2895.  I'enalties  lecovered  under  this  article  must  be  paid 
1(1  till'  c'ounty  treasurer  for  tlie  use  of  the  general  road  fund  of 
the  county. 

TOnacted  Mnrch   12,   1S72. 


CIIArTER  V. 

WHARVES,    CHUTES,    AND    PIERS. 

Sec.  2906.  Board  of  supervisors  to  authorize  construction. 

2907.  Application,  what  to  contain  and  how  made. 

2908.  Petition  relative  to  lands  not  owned  by  applicant. 

2909.  Notice  served  on  non-residents. 

2910.  Board  to  hear  proof,  and  may  grant  authority. 

2911.  Overflowed  or  tide  lands  granted. 

2912.  One  hundred  and  fifty  feet  on  each  side  of  wharf,  olr. 
291,3.  How  to  obtain  use  of  lands. 

2911.  Dimensions  of  v>'harves,  chutes,  or  piers. 

2915.  Franchi.se,    what   to   constitute. 

2916.  Board  of  supervisors  to  fi.K  rale  of  lolls,  etc. 

2917.  Ijicense,  and  the  tax  for. 

2918.  To  keep  in  good  repair. 

2919.  Restrictions  on  granting  authority. 

2920.  Cities  and  towns  exempted  and  authoiized. 

2921.  Granting  railroad  riglit  to  construct. 

Board  of  supervisors  to  authorize  construction. 

§  2906.  The  boards  of  supervisors  of  every  county  in  this 
state  nxjiy  grant  authority  to  any  person  or  corporation  to  con- 
struct a  wharf,  chute,  or  pier,  on  any  lands  bordering  on  any 
navigable  bay,  lake,  inlet,  creek,  slough,  or  arm  of  the  sea, 
situate  in  or  bounding  their  counties  respectively,  with  a  license 
to  take  tolls  for  the  use  of  the  same  for  the  term  of  twenty 
years. 

Enacted  March  12,  1S72. 

See,  al.so,  Pol.  C.  §§3378  nnd   1041. 


§  2907  POLITICAL  CODK.  338 

Application,  what  to  contain  and   how  made. 

S  2807.  Ai)i)li(;.ili()U  Ihcrcfur  must  he  tiiado  by  piiblisliin;;- 
iiolicc  as  required  iu  .section  tweuty-oiglit  hundred  and  nim'ly- 
two,  aud  tiling  a  petition  iu  writing-,  containing : 

1.  The  name  and  residence  of  the  applicant ;  and  if  a  cor- 
poration, a  certified  copy  of  the  articles  of  incorporation  ; 

2.  A  map  of  the  waters,  and  the  name  and  location  thereof, 
and  of  the  adjoining  lands ; 

3.  A  plan  of  the  wharf,  chute,  or  pier  proposed  to  be  con- 
structed, and  of  the  land  within  three  hundred  feet  thereof; 

4.  The  names  of  the  owui-rs  of  the  lands,  and  the  quantity 
thereof  sought  to  be  used,  and  whether  the  right  to  use  the 
same  is  or  is  to  be  acquired  by  the  applicant ; 

5.  The  distance  it  is  proposed  to  extend  the  wharf,  chute,  or 
pier  into  the  waters ; 

C).  The  estimated  cost  of  the  construction  of  the  wharf,  chute, 
or  pier ;  and, 

7.  The  time  when  the  application  will  be  made. 
Enacted  March  12,  1872. 

Petition  relative  to  lands  not  owned   by  applicant. 

S  2908.  When  any  lands  are  sought  to  be  appropriated  and 
used  for  a  wiiarf,  chute,  or  pier,  of  which  the  applicant  is  not 
the  owner,  or  the  right  of  way  and  use  thereof  has  not  been 
obtained  by  agreement,  these  facts  and  the  particular  descrip- 
tion of  surh  land  must  be  set  forth  in  the  petition  of  the  api)li- 
cant,  and  a  copy  of  the  notice  of  application  must  be  served 
on  the  owner  thereof  by  the  sheriff  of  the  county,  whose  official 
return  is  conclusive  evidence  of  service,  at  least  ten  days  prior 
to  the  appointed  day  set  for  the  hearing  of  the  same. 

Enacted  March  12,  1872. 

Notice  served  on   non-residents. 

§  2909.  When  the  owner  of  the  land  i.<!!  a  non-resident  of  the 
county,  it  is  service  of  notice  for  the  sheriff  to  leave  a  copy  with 
the  occupant  or  agent  of  the  owner;  if  none,  then  to  place  a 
copy  in  the  post  office  addressed  to  the  owner  thirty  days  prior 
to  the  day  set  for  the  hearing.  If  the  owner  is  a  minor,  insane, 
idiot,  or  decedent,,  notice  must  be  served  on  the  guardian, 
administrator,  or  oth<>r  legal  representative  of  such  person. 

Enacted  March  12,  1872. 


334  POLITICAL   CODE.  §  2910 

Board  to  hear  proof,  and  may  grant  authority. 

S  2910.  On  the  day  named  in  Uio  notice,  or  to  wliidi  (he  hear- 
ing i.s  adjourned,  Ihe  board  of  supervisors  must  hear  proof  of 
publication  and  service  of  notice  ;  if  satisfactory,  tlie  board  mu.st 
hear  the  allegations  of  the  petition,  and  any  objections  to  the 
srauting  of  the  application,  and  proofs  in  support  of  each.  If 
from  the  proofs  it  appear  that  the  public  good  or  convenience 
will  be  promoted  thereby,  the  board  of  supervisors  may  grant  to 
the  applicant  the  right  to  erect  or  construct  a  wharf,  chute,  or 
l)ier,  as  prayed  for.  and  to  take  tolls  for  the  use  of  the  same  for 
the  term  of  twenty  years. 

Enacted  March  12,  1872. 

Overflowed    or    tide   lands   granied. 

§  2911.  The  grant  of  authority  made  by  the  board  of  super- 
visors, as  provided  in  the  preceding  section,  conveys  to  the 
grantee  or  applicant  the  right  of  way  and  all  necessary  use  for 
the  purposes  of  the  wharf,  chute,  or  pier,  of  any  of  the  over- 
flowed, submerged,  or  tide  lands  belonging  to  the  state,  particu- 
larly describing  the  quantity  thereof  in  the  order,  as  also  the 
right  of  way  over  any  swamp,  overflowed,  marsh,  or  tide  lands 
lying  between  the  wharf,  chute,  or  pier  and  high  or  dry  land, 
fifty  feet  in  width,  for  twenty  years. 

Enacted  March  12,  1872. 

One  hundred  and  fifty  feet  on  each  side  of  wharf,  etc. 

§  2912.  The  grant  of  authority  herein  provided  for  carries 
with  it  the  right  to  have  unincumbered  and  unobstructed  the 
land  and  water  on  each  side  of  the  wharf,  chute,  or  pier,  from 
high-water  mark  to  navigable  water,  a  distance  of  one  hundred 
and  fifty  feet,  for  the  convenience  of  landing,  loading,  and 
unloading  vessels,  but  for  no  other  purpose. 

Enacted  March  12,  1872. 

How  to  obtain   use  of  lands. 

§  2913.  Authority  to  construct  a  wharf,  chute,  or  pier  being 
granted,  the  grantee  or  applicant  may  procure  from  the  owner 
the  right  of  way  and  other  necessary  incidental  use  for  the 
wharf,  chute,  or  pier,  of  any  of  his  lands,  by  proceedings  had 
under  title  seven,  part  three,  of  the  Code  of  Civil  Procedure. 
Until  such  use  of  the  lands  held  adversely  is  obtained  by  agree- 
ment, or  by  the  proceedings  hereinbefore  mentioned,  there  is  no 


§  2913  POLITICAL   CODE.  335 

authoritj'  lo  construct  a  wharf,  chuto,  or  pier,  or  to  lake  tolls 
thereon. 

Enacted  March  12,  1872. 
57  Cal.  201. 

Dimensions  of  wliarves.  chutes,  or  piers. 

S  2914.  The  wharf,  chute,  or  pier  must  not  be  of  a  greater 
width  than  seventy-five  (75)  feet,  and  may  extend  to  navigalrle 
water ;  provided,  that  a  wharf  constructed  upon  any  of  the 
navigable  rivers,  straits,  sloughs,  and  inlets  in  this  state  may 
extend  along  the  shores  for  a  distance  not  exceeding  one  thou- 
sand feet,  but  in  no  case  shall  any  wharf,  chute,  or  pier  extend 
into  the  water  so  far  as  to  obstruct  the  free  navigation  of  the 
water  on  which  the  same  is  situated  ;  provided,  this  act  shall 
not  apply  to  the  water-fronts  of  incorporated  cities  and  towns. 

Amended  April  IG,  ISSO;  stats.  ISSO,  p.  GG. 

Franchise,  what  to  constitute. 

§  2915.  The  orders  granting  authority,  and  agreements,  con- 
tracts, deeds,  and  decrees  of  courts  granting  the  right  of  way  and 
other  use  of  lands,  must  be  filed  and  recorded  in  the  office  of  the 
recorder  of  the  county  whore  the  wharf,  chute,  or  pier  is  situate 
and  constitutes  the  franchise  of  the  applicant.  The  fees  of  the 
recorder,  as  also  the  fees  of  the  clerk,  sheriff,  and  other  officers, 
for  services  rendered,  mus(  be  paid  by  the  applicant. 

Enacled  March  12.  1872. 

Board  of  supervisors  to  fix  rate  of  tolls,  etc. 

S  2916.  The  board  of  supervisors  must  fix  the  rate  o£  tolls 
or  wharfage  for  the  use  of  the  wharf,  chute,  or  pier  annually, 
which  must  not  produce  an  income  of  less  than  fifteen  per  cent 
per  annum  nor  more  than  twenty-five  per  cent  per  annum  on 
the  fair  cash  value  of  the  wharf,  chute,  or  pier,  and  on  the  cost 
of  repair  and  maintenance  thereof,  exclusive  of  the  amount  paid 
for  license  imposed  by  the  next  section.  Such  value  and  cost  of 
repair  and  mainteaauce  to  be  fixed  by  the  board  of  supervisors 
when  levying  the  rates  of  tolls  or  wharfage,  by  hearing  evidence 
and  examining  the  assessment  rolls  of  the  county.  When  fixed, 
the  rates  must  be  furnished  the  owner,  and  a  printed  or  written 
copy  thereof  conspicuously  posted  on  the  wharf,  chute,  or  pi(n'. 

Amended  March  21,  187G ;  stats.  1,S75-G,  p.  .52. 


ooO  POLITICAL   CODE.  §2017 

License,  and  the  tax  for. 

§2917.  WIk'u  the  wliarf,  chute,  or  i)ier  is  couipletetl  aud  the 
lolls  or  wharfage  fixed,  the  owner  is  entitled  to  a  license  to  take 
the  tolls  thereon  for  the  term  of  one  year,  to  be  issued  by  the 
county  auditor  on  the  payment  of  such  license  tax  a.s  the  board 
of  sujR'rvisors  may  fix,  which,  except  that  for  the  first  year, 
must  not  be  more  than  ten  per  cent  of  the  gross  receipts  for  tolls 
or  wharfage  for  the  previous  year,  to  be  paid  to  the  county 
treasury  for  general  roa<l  purposes. 

Enacted  March  12.  1872. 

To  keep  in  good  repair. 

§  2918.  Any  owner  or  keeper  of  a  wharf,  chute,  or  pier  who 
takes  toll  or  wharfage  for  the  use  of  the  same  when  not  in  good 
repair,  or  is  unsafe  or  dangerous,  forfeits  the  sum  of  twenty- 
five  dollars,  to  be  recovered  by  order  of  the  board  of  supervisors 
granting  authority  to  construct  it,  for  the  use  of  -the  general 
road  fund  of  the  county,  and  is  liable  for  all  damages  occasioned 
thereby. 

Enacted  March  12.  1872. 

Restrictions  on  granting  autt'.ority. 

§  2919.  No  authority  must  be  granted  under  this  chapter  to 
interfere  with  vested  rights,  nor  to  interfere  with  or  infringe 
grants  heretofore  made  by  state  authority  ;  nor  does  authority 
to  construct  a  wharf,  chute,  or  pier  continue  for  a  longer  period 
than  two  years,  unless  the  same  is  within  that  lime  completed. 

Enacted  March  12.  1872. 

07  Cal.  .515  ;  110  Cal.  307. 

Cities  and  towns  exempted  and  authorized. 

§  2920.  The  lands  of  the  state  situate  in  the  city  and  county 
of  San  Francisco,  and  those  otherwise  disposed  of  or  situate 
within  the  limits  of  any  incorporated  town  or  city  of  this  state, 
are  excluded  from  the  provisions  of  this  chapter.  The  municipal 
authorities  of  any  incorporated  city  or  town  other  than  San 
Francisco  may  grant  authority  to  construct  wharves,  chutes,  and 
piers,  as  is  herein  provided  for  the  board  of  supervisors. 

Enacted  March  12,  1872. 
00  Cal.  347. 

Granting  railroad  right  to  construct. 

S2921.  Boards  of  supervisors  of  counties  in  this  state  may 
grant    to    any    railroad    corporation    authority    to    construct    a 


§  2921  POLITICAL   CODE.  337 

wharf  or  pier  on  or  in  front  of  any  lauds  owned  by  it  bordering 
on  any  navigable  bay,  inlet,  lake,  creek,  slough,  or  arm  of  the 
sea  situate  in  or  bounding  their  counties,  respectively,  with  a 
license  to  take  tolls  for  the  use  of  the  same  for  the  term  of  the 
corporate  existence  of  the  said  railroad  corporations,  not  exceed- 
ing fifty  years,  whenever  such  board  finds  the  use  of  said  wharf 
or  pier  necessary  to  the  exercise  of  the  franchise  of  such  rail- 
road corporation  for  terminal  purposes,  and  the  same  may  be 
granted  without  offering  the  same  for  sale.  Nothing  contained 
in  this  chapter  shall  be  construed  to  limit  the  powei-s  of  such 
lioards  to  grant  the  right  to  such  railroad  corporations  to  build 
and  construct  for  terminal  purposes  on  and  in  front  of  any  lands 
owned  by  it  any  wharf  or  pier  of  the  width  necessary  for  the 
carrying  on  of  the  business  of  such  railroad  at  such  terminal, 
not  to  exceed  one  thousand  (1,000)  feet,  and  to  the  length  that 
it  may  be  desirable  to  construct  the  same,  so  that  it  may  not 
prevent  the  navigation  by  boats  and  vessels  of  such  navigable 
baj%  inlet,  lake,  creek,  slough,  or  arm  of  the  sea  ;  provided,  that 
there  shall  be  excluded  from  the  operation  of  this  section  any 
and  all  territory  and  property  under  the  jurisdiction  or  control 
of  any  incorporated  city  or  town  or  any  boai'd  of  state  harbor 
commissioners.  All  of  the  provisions  of  this  chapter  not  in  con- 
flict with  anything  in  this  section  contained  are  hereby  made 
applicable  to  all  proceedings  had  under  this  section. 
Enacted  March  22,  1899 ;  stats.  1S99,  p.  234. 

CHAPTER  VI. 

MISCELLANEOUS    PROVISIONS    RELATING    TO    PUBLIC 
WAYS. 

SiiC.  2938.     Protection  of  brklgep. 

Protection  of  bridges,. 

§  2938.  The  owner  of  any  toll  bridge,  and  any  plank-road 
company  owning  a  bridge  of  not  less  than  twenty  feet  span, 
may  put  up  conspicuously  at  each  end  of  it  notice  in  these 
words  in  large  characters :  "Five  dollars  fine  for  riding  or 
driving  on  this  bridge  faster  than  a  walk"  ;  and  whoever  rides 
or  drives  faster  than  a  walk  on  such  bridge  forfeits  to  the 
owner  the  sum  of  five  dollars. 

Enacted  3Iarch  12,  1S72. 

See.  also.  Pen.  C.  *i  3.S.S. 
^  5 — CL. 


•  >oS  roi  I  I  icAi,  coin;.  §  :'>1.V_> 

TITLE  VII. 
General  Police  of  the  State. 

CIIAl'TER   VI. 
LOST    AND    UNCLAIMED    PROPERTY. 

Article  II. 
Unclaimed  Property. 

Skc.  3152.  Cioods  may  be  retained  until  cluirge.s  paid. 

3153.  Property  unclaimed  within  sixty  days  to  be  sold. 

3154.  Proceeds  unclaimed,  where  to  go. 

3155.  Carrier's   responsibility   ceases,   when. 

3156.  Property  upon  which  advances  are  made  may  be  sold. 

3157.  Fees  of  offlcfi-.«. 

Goods  may  be  retained  until  charges  paid. 

§3152.  When  any  goods,  merchiuulise,  or  otlier  property  has 
been  received  by  any  raih-oad  or  express  company,  or  other  com- 
raou  carrier,  commission  mei"chauts,  innlveepers  or  warehouse- 
men, for  transportation  or  safe-lfeeping,  and  are  not  delivered 
to  the  owner,  consignee,  or  other  authorized  p(>rson,  tlie  carrier, 
commission  merchant,  innkeeper,  or  wareliousenian.  may  hold  or 
store  the  same  with  some  responsible  person  until  the  freigjil 
and  all  just  and  reasonable  charges  are  paid. 

Enacted  IMarcb  12,  1872. 
!>4  Cal.  178. 

Property  unclaimed  within  sixty  days  to  be  sold. 

§3153.  If  no  person  calls  for  the  property  v.illiin  sixty  days 
from  the  receipt  thereof,  and  pays  freight  and  cliarges  thereon, 
the  carrier,  commission  merchant,  inukeei)er,  or  warehouseman 
may  sell  such  property,  or  so  much  thereof  as  will  i)ay  freight 
and  charges,  to  the  highest  bidder  at  public  auction,  having 
first  caused  such  notice  of  sale  to  be  given  as  is  customary 
iu  sales  of  goods  by  auction  at  the  place  where  Sciid  goods  may 
be  held  or  stored.  If  any  surplus  is  left,  after  paying  freight, 
storage,  expenses  of  sale,  and  other  reasonable  charges,  the 
same  must  I)e  paid  OA'er  to   the   owner  of  such    iirojicrty,   upon 


§  3153  POLITICAL   CODE.  339 

demand  bcinu'  iiiado  thorofor  at  any  time  williin  sixty  days  after 
the  sale. 

Amended  March  d  1003;  stats.  I!t03.  p.  SS. 

Proceeds  unclaimed,  where  to  go. 

S  3154.  If  the  owner  or  his  agent  fails  to  demand  such  sur- 
plus within  sixty  days  of  the  time  of  such  sale,  then  it  must  be 
paid  into  the  county  treasury,  subject  to  the  order  of  the  owner. 

Enacted  March  12.  1872. 

Carrier's  responsibility  ceases,  when. 

§  3155.  After  the  storage  of  goods,  merchandise,  or  pi-opcrty. 
as  herein  provided,  the  responsil)ility  of  the  carrier  ceases,  nor 
is  the  person  with  whom  the  same  is  stored  liable  for  any 
loss  or  damage  on  account  thereof,  unless  the  same  results  from 
his  negligence  or  want  of  proper  care. 

Enacted  March  12.  1872. 

Property  upon  which  advances  are  made  may  be  sold. 

S  3156.  Vriien  any  conunission  merchant  or  warehouseman 
receives  on  consignment  produce,  merchandise,  or  other  property, 
and  makes  advances  thereon,  either  to  the  owner  or  for  freight 
and  charges,  he  may.  if  the  same  is  not  paid  to  him  within 
sixty  days  from  the  date  of  such  advances,  cause  the  ))roduce. 
merchandise,  or  i)roi)erty  on  whi<h  the  advances  were  made, 
to  be  advertised  and  sold  as  provided  herein. 

Enacted  March  12.  1872. 

Fees  of  officers. 

S  3157.  'I'he  fees  of  oUicers  under  this  chaptfr  are  tli>'  same 
allowed  for  similar  services  in  other  cases  provided  in  this  code, 
to  be  )iaid  by  the  taker  up  or  finder,  and  recovered  of  the  owner. 

I':hiacled  March  12.  1872. 
•.>4  C'al.  178. 

Warehouse  receipts,  etc.:  See  (Mvil  C.  S§  18.j,S  lo  is.'iS/' ;  see, 
also,   "Warehousemen,"  statutes  at   large.  Appendix. 


340  POLITICAL   CODE.  §  3196 

CHAPTER  VII. 

MARKS   AND    BRANDS. 

Article  III. 

Trade-marks. 

(See,  iilso,  Civ.  (".  {?§  (;54.  ^^^,r^,  mi,  1772,  1778;  Pen.  C. 
§§  349«  to  354%;  "Trade-marks."  statutes  at  larue.  Appendix.) 
Sec.  3196.     "Trade-marks"  defined. 

.'5196a.   Registration  of  farm  name. 

3196b.   Trade-mark  on  products. 

3197.     Exclusive  use  of  trade-mark,  how  secured. 

319S.     Record  of  trade-marks. 

3199.     Assignments.     Injunctions. 

32  00.     Use  of  by  labor  vmion. 

3201.     Infringement  of  trade-mark  used  by  trade  union. 

"Trade-marks"  defined. 

S3196.  The  phrase  "trade-mark"  as  u.sed  in  this  chapter 
includes  every  description  of  word,  letter,  device,  emblem, .stamp, 
imprint,  lirand.  i)rinted  ticket,  label,  or  \\  rapper  usually  affixed 
by  any  mechanic,  manufacturer,  (lruK.ii^ist,  merchant,  or  trades- 
man, to  denote  any  goods  to  be  noods  imported,  manufactured, 
produced,  compounded  or  sold  by  him,  other  than  any  name, 
word,  or  expression  generally  denoting  any  goods  to  be  of  some 
particular  class  or  description,  and  also  any  name  or  names, 
marks  or  devices,  branded,  stamped,  engraved,  etched,  blown,  or 
otherwise  attached  or  pi'oduced  upon  any  cask,  keg,  bottle, 
vessel,  siphon,  can,  case,  or  other  package,  used  by  any  mechanic, 
manufacturer,  druggist,  merchant  or  tradesman,  to  hold,  con- 
tain or  inclose  the  goods  so  imported,  manufactured,  produced, 
compounded  or  sold  by  him,  other  than  any  name,  word  or 
expression  geuerall,y  (h'notiug  any  goods  to  be  of  some  ]iarlicular 
class  or  description. 

Amended  March  3.  I'.Ki:;  :  sfals.  V.H):\.  p.  so. 
03  Cal.  44(i. 
Registration  of  farm   name. 

§3196ff.  Any  person  may  adopt  a  name  for  any  farm  or 
estate  owned  or  leased  by  him,  and  register  it  in  the  manner 
provided  for  the  registration  of  trade-marks.  Such  registration 
shall  have  the  same  effect  as  the  registration  of  a  trade-mark. 

New  section;  added  March  8,  1900;  stats.  1909,  p.  23-J ;  in 
effect  in  sixty  days. 


§  3196?^  POLITICAL  CODE.  341 

Trade-mark  on  products. 

§  31966.  Auy  person  selling  or  marketing  the  products  grown 
on  any  particular  farm  or  estate  may  use  the  name  ol;  such 
farm  or  estate  as  a  trade-mark  ou  such  products,  in  the  sarae 
manner  as  provided  for  other  trade-marks  in  Section  3190  of 
this  code,  and  subject  to  the  same  rights  an<l  duties  as  provided 
in  this  article. 

New  section;  added  March  S,  1909;  stats.  1909,  p.  233;  in 
effect  in  sixty  days. 

Exclusive  use  of  trade-mark,   how  secured. 

§  3197.  Any  person  or  persons,  desiring  to  secure  within  this 
state  the  exclusive  use  of  anj'  trade-mark  or  name  for  any 
article  of  manufacture  or  for  any  business,  shall,  within  thirty^ 
days  after  commencing  to  use  such  trade-mark  or  name,  or 
at  any  time  thereafter  and  before  the  filing  of  the  said  trade- 
mark or  name  by  any  other  person,  firm  or  corporation,  file 
with  the  secretary  of  state  his  claim  to  the  same,  and  a  copy  or 
description  of  such  trade-mark  or  name,  with  his  affidavit 
attached  thereto,  certified  to  by  any  officer  authorized  to  take 
acknowledgments  of  conveyances,  setting  forth  that  he  (or  the 
firm  or  corporation  of  which  he  is  a  member)  is  the  exclusive 
owner,  or  agent  of  the  owner,  of  such  trade-mark  or  name. 

Amended  March  G.  1909 ;  stats.  1909,  p.  150 ;  in  effect  in  sixty 
days. 

06  Cal.  78  ;  102  Cal.  41 ;  G  Cal.  App.  534. 

Record  of  trade-marks. 

§3198.  The  secretary  of  state  must  keep  for  public  examina- 
tion a  record  of  all  trade-marks  or  names  filed  in  his  office,  with 
the  date  when  filed  and  name  of  claimant ;  and  must  at  the  time 
of  filing  issue  to  the  claimant  a  certificate  of  such  filing  under 
the  great  seal  of  the  state,  and  collect  from  such  claimant,  a 
fee  of  five  dollars,  as  provided  for  in  section  four  hundred  and 
sixteen  of  this  code.  Provided,  however,  the  secretary  of  state 
shall  refuse  to  file  any  trade-mark  or  name  identical  with,  or  so 
similar  to  any  trade-mark  or  name  already  filed  as  to  be  cal- 
culated or  liable  to  deceive. 

Amended  March  0,  1909;  stats.  1909,  p.  150;  in  efPect.  in  sixty 
days. 

Note. — §  3198.  Amended  to  conform  to  the  fee  bill  in  section 
416  of  the  Political  Code,  which  had,  both  with  reference  to  the 
fee  to  be  collected  and  with  reference  to  the  disposition  of  the  fees 
collected,  superseded  said  section  3198. 


o4li  i'()i>nicAL  CODE.  §  3199 

Assignments — Injunctions. 

§3199.  Auy  person  who  has  first  adopted  a  trade-mark  or 
name  by  filing  same  in  tlae  ofiice  of  the  secretary  of  state  and 
has  used  said  trade-mark  or  name,  whether  within  or  beyond 
the  limits  of  this  state,  is  its  original  owner.  Such  ownership 
may  be  transferred  in  the  same  manner  as  personal  property 
and  is  entitled  to  the  same  protection  by  suits  at  law.  and  any 
court  of  competent  .iurisdiction  may  restrain,  by  injunction,  any 
use  of  trade-marks,  or  names,  in  violation  of  Ihis  chnpt(M-. 

Amended  March  G,  1909:  stats.  1909.  p.  I.'d:  in  .-ffcct  in  sixly 
days. 

m  Cal.  IS:  192  Cal.  44. 

Use   of   by   labor    union. 

§  3200.  Any  trade  union,  labor  association,  or  laljor  organiza- 
tion, organized  and  existing  in  this  state,  whether  incorporated 
or  not,  may  adopt  and  use  a  trade-mark  and  affix  the  same  to 
any  goods  made,  produced  or  manufactured  by  the  members  of 
such  trade  union,  labor  association,  or  labor  organization,  or  to 
the  box,  cask,  case,  or  package  containing  such  goods,  and  may 
record  such  trade-mark  by  filing  or  causing  to  be  filed  with  the 
secretary  of  state  its  claim  to  the  same,  and  a  copy  or  descrip- 
tion of  such  trade-mark,  with  the  affidavit  of  the  president  of 
such  trade  union,  lal)or  association,  or  labor  organization,  certi- 
fied to  by  any  bflicer  authorized  to  take  acknowledgments  of 
conveyances,  setting  forth  that  the  trade  union,  labor  associa- 
tion, or  labor  organization  of  which  he  is  the  president  is  the 
exclusive  owner,  or  agent  of  the  owner,  of  such  trade-mark  ;  and 
all  the  provisions  of  article  three,  chapter  seven,  title  seven, 
part  three,  of  the  I'olitieal  Code,  are  hereby  made  applicable 
to  such  trade-mark. 

Enacted  March  47,  1887;  stats.  1887,  p.  Km. 

Infringement    of    trade-mark    used    by    trade    union. 

§  3201.  The  president  or  other  presiding  officer  of  any  trade 
union,  labor  association,  or  labor  organization,  organized  and 
existing  in  this  state,  which  shall  have  complied  with  the  pro- 
visions pt  the  preceding  section,  is  hereby  authorized  and 
empowered  to  commence  and  prosecute  in  his  own  name  any 
action  or  proceedings  he  ma.y  deem  necessary  for  the  protection 
of  any  trade-mark  adoijted  or  in  use  under  the  provisions  of  the 
l>rec('ding  section,   or   for   the   iirotection   or  enforcement   of   any 


§  3201  POLITICAL  CODE.  o43 

rights  or  powers  which  may  accrue  to  such  trade  union,  hihor 
association,  or  labor  organization  by  the  use  or  adoption  of  said 
trade-mark. 

Ennoted  Mareli  17,  ISS?:  stats.  ISST.  )>.  K'.S. 


('ii.vi"i'i:u  X. 

HOURS    OF    LABOR. 

(See.  .-ilso.  "l  lours  of  Lalior,"  slatules  ai   largv,  Aiipcndi.x.) 

Sec.  324G.      TWfUr  hours  on  street  ears. 

3250.      Tltjuis  of  kiVioi-  on  street  cars.      Penalty  for  violation. 

Twelve  hours  on  street  cars. 

S  3246.  Twelve  hours"  labor  constitutes  a  day's  work  on  the 
i)art  of  drivers  and  couductor.s,  and  gripmen  of  street  cars  for 
the  carriage  of  passengers.  Any  contract  for  a  greater  number 
of  hours'  labor  in  one  day  shall  lie  and  is  void,  at  the  option  of 
the  employee,  without  regard  to  the  terms  of  einploynnMil, 
whether  the  same  be  by  the  hour,  day,  week,  month,  or  any 
other  period  of  time,  or  by  or  according  to  the  trip  ov  trips  that 
the  car  may,  might,  or  can  make  lidween  the  termiiii  of  the 
route,  or  any  less  distance  thereof.  .Vny  and  e\ery  jierson  labor- 
ing over  twehc  iioiu-s  in  one  day  as  driver,  or  conductor,  or  grip- 
man,  on  ■any  street  railroad,  shall  receive  from  his  employer 
tliirty  cents  for  each  hour's  labor  over  twelve  hours  in  each  da.\'. 

Enacted  March  11,  lSS7;'stats.  ISST.  p.  102. 

Hours  of  labor  on  street  cars — Penalty  for  violation. 

S  3250.  Xo  person  snail  be  employed  as  conductor,  or  driver, 
or  gripman  on  any  street  railroad,  for  more  than  twelve  hours 
in  one  day,  except  as  in  this  act  i)rovided ;  and  any  corporation, 
or  company,  or  owner,  or  agerrt.  or  superintendent,  who  know- 
ingly employs  any  person  in  such  capacity  for  more  than  twelve 
hours  iu  one  day,  in  violation  of  the  terms  of  this  act,  shall 
forfeit  the  sum  of  fifty  dollars  as  a  penalty  for  such  offense,  to 
the  use  of  the  person  prosecuting  any  action  therefor,  and  any 
number  of  forfeits  may  be  prosecuted  in  one  action. 

Enacted  ^farch  11,  1887;  stats.  1SS7,  p.  102. 


344  POLITICAL  CODE.  §  3378 

CHAPTER  XV. 

LICENSES. 

Artici.k  ir. 

Classification   and   Taxes. 

(See,  also,  "License  Tax,"  statutes  at  large,  Appendix.) 

Sec.  3.378.     Bridge,  ferry,  wharf,  chute,  or  pier  license. 
337'J.     Brolcers,  trust  companies,  and  others. 

Bridge,  ferry,  wharf,  chute,  or  pier  license. 

§  3378.  Licenses  to  take  tolls  ou  bridges,  ferries,  wharves, 
cluites.  or  piers  are  fixed  annually  by  the  boards  of  supervisors. 
The  licenses  therein  provided  for  are  issued  by  the  county 
auditor,  and  must  l)e  obtained  from  the  tax  collector  of  the 
county. 

Enacted  March  12,  1872. 

Toll  bridges  and  ferries:  See  Pol.  C.  §§2843-2895;  see,  also 
Pol.  C.  §4041. 

Deliucjuent  license  tax,  proceedings  to  collect :  See  "License 
Tax,"'  statutes  at  large,  Appendix,  for  act  of  March  21,  1872. 

Wharves,  chutes,  and  piers:  Pol.  C.   §§  200G-2921. 

Omitting  to  procure  license:  Pen.  C.  §435. 

Brokers,  trust  companies,  and  others. 

§  3379.  Persons  engaged  in  banking,  loaning  money  at  inter- 
est, or  in  buying  or  selling  notes,  bonds,  or  other  evidences  of 
indebtedness  of  private  persons ;  or  in  buying  or  selling  state, 
county  or  city  stocks,  or  other  evidences  of  state,  county,  or  city 
indebtedness;  or  stocks,  or  notes,  bonds,  or  other  evidences  of 
indebtedness  of  incorporated  companies ;  or  in  buying  or  selling 
gold  dust,  gold  or  silver  bullion,  or  gold  or  silver  coin,  are 
divided  into  six  classes,  and  must  pay  licenses  as  follows: 

1.  Those  doing  business  in  the  aggregate  to  the  amount  of  two 
hundred  and  fifty  thousand  dollars  per  quarter  and  over,  con- 
stitute the  first  class,  and  must  pay  a  license  of  ope  hundred 
dollars  per  quarter ; 

2.  Those  doing  business  to  the  amount  of  two  hundred  thou- 
sand dollars,  and  less  than  two  hundred  and  fifty  thousand 
dollars  per  quarter,  constitute  the  second  class,  and  must  pay  a 
license  of  eighty  dollars  per  quarter; 


§  :}37!)  POLITICAL  Ct»l)E.  345 

;>.  Those  (loiug  business  to  the  amount  of  oue  hundred  thou- 
sand dollars,  and  less  than  two  hundred  thousand  dollars  per 
quarter,  constitute  the  third  class,  and  must  pay  a  license  of 
forty  dollars  per  quarter  ; 

4.  Those  doing  business  to  tlie  amount  of  fifty  thousand  dol- 
lars, and  less  than  one  huiulred  thousand  dollars  per  quarter, 
constitute  the  fourth  class,  and  must  pay  a  license  of  twenty-five 
dollars  per  quarter  ; 

5,  Those  doing  business  in  any  antount  under  fifty  thousand 
dollars,  and  over  five  thousand  dollars  per  quarter,  constitute 
the  fifth  class,  and  must  pay  a  license  of  fifteen  dollars  per 
(pmrter ; 

('».  Those  doing  business  in  any  amount  under  five  thousaiul 
dollars  per  quarter,  constitute  the  sixlli  class,  and  must  pay  a 
license  of  three  dollars  per  quarter. 

Enacted  March  12,  1872. 


TITLE  IX. 
Revenue. 

CHAPTER  I, 

PROPERTY     LIABLE    TO    TAXATION. 

Sec.  3607.  Property  subject  to  taxation. 

360S.  Shares  of  stock  in  corporations. 

.360!*.  Shares  of  national  banks. 

.•'610.  Same. 

3611.  ]<jXcmi)tion  of  churoh  i)ropi^rly. 

Property  subject  to  taxation. 

§  3607.  All  property  in  this  state,  not  exempt  under  the  laws 
of  the  United  States,  excepting  fruit  and  nut-bearing  trees  under 
the  age  of  four  years  from  the  time  of  planting  in  orchard  form, 
and  grapevines  under  the  age  of  three  years  from  the  time  of 
planting  in  vineyard  form,  growing  crops,  property  used  exclu- 
sively for  public  schools,  free  public  libraries,  and  free  museums, 
and  such  as  may  belong  to  the  United  States,  this  state,  or  to 
any  county  or  municipal  corporation  within  this  state,  is  subject 


•^40  POLITICAL   CODE.  §  ."GOT 

to  taxation,  as  iu  this  code  pi-ovidod  ;  but  nutliiiii;-  in  this  co(l<> 
shall  be  construed  to  reciuire  or  permit  double  taxation. 
Amended  March  2.S.   180");  stats.   ISOo.  p.  310. 

<rj  Cal.   115;  07  (^il.   Ill;   !)0  Cal.  CT."  :   lOS  Cal.    lit;;; 

134  Cal.  480;  137  Cal.  .V_>4  ;  US  Cal.  S.") ;   1-1!)  (";,1.  ."S(! ; 

loS  Cal.  509;  0  Cal.  App.  181,  352. 

"Property"  defined,  as  subject  to  taxation:   St>e  Pol.  C.  S  3017. 

The   taxing-  of  the  property  of  a   corporation,   as  well  as  the 

shares  of  the  stock,  is  expressly  declared  to  be  double  taxation: 

I'ol.  C.  S  3008. 

Kxemi)tions  authorized  by  Constitution  of  Califoi-uia  :  See 
art.  Xlir.  S  1. 

Shares  of  stock  in  corporations. 

S  3608.  Shares  of  stock  in  corijoralious  possess  no  intrinsic 
\alue  over  and  above  the  actual  value  of  the  property  of  the 
corporation  which  they  stand  for  and  represent;  and  the  assess- 
ment and  taxation  of  such  shares,  and  also  all  the  corporate 
liroperty.  would  be  double  taxation.  '^rherefor(\  all  property 
belonging-  to  corporations,  sa\e  and  except  the  property  of 
national  banking-  associations,  not  assessable  by  federal  statute, 
shall  be  assessed  and  taxed.  But  no  assessment  shall  be  made  of 
shares  of  stock  in  any  corporation,  save  and  except  in  national 
banking  associations,  whose  i)roperty.  other  than  r(>al  estat(\  is 
exemjit  from  assessment  by  fedei-al  statut(\ 
Ainende.l  ^klarch    14.   IS'.!'.);  stats.    lS!i'.).  |(.  'M\. 

01'   Cal.    115;    llC   Cal.   •_'!' :    142   Cal.    2S-_>  :    141)   C:il.    57S. 

580.  587.  5S8.  5s;).  .5;»1  ;  15:;  Cal.  502.  504.  5(;5,  7>m.  5(17, 

500.  570. 

Sliares   of    national    lDanl<s. 

S  3609.  The  stockholders  in  e\ery  national  banking  associa- 
tion doing  business  in  this  slate,  .-uid  having  its  principal  place 
of  business  located  iu  this  state,  shall  be  assessed  and  taxed  on 
the  value  of  their  shares  of  stock  therein  ;  and  said  shares  shall 
be  valued  and  assessed  as  is  othei-  property  for  taxation,  and 
shall  be  included  iu  the  A-aluation  of  the  i)ersonal  property  of 
such  stockholders  in  the  assessment  of  the  taxes  at  the  place, 
city.  town,  and  <'()uut,\-  wlii'rr  sudi  national  banking  associ.ation 
is  joi-ati'fi.  ;in(l  nol  clscw  Iht''.  wlii'lh'M-  tln'  said  st<»ckl)ol<l<'rs 
ri'sidi'  in  said  placi'.  cily,  town,  ni-  county,  or  not  ;  bnl  in  I  Ur 
.'issrssinrnl    of  sucii   sliarrs.  rach   sloi-kiioldei-  shall   be  allowed   all 


§  3G0D  roLiTiCAL  code.  347 

the  deductions  permitted  by  law  to  the  hohlers  of  moneyed 
capital  iu  the  form  of  solvent  credits,  in  the  same  manner  as 
such  deductions  are  allowed  by  the  provision  of  paragraph  six 
of  section  thirty-six  hundred  and  twenty-nine  of  the  Political 
Code  of  the  State  of  California.  In  making  such  assessment  to 
each  stockholder,  there  shall  be  deducted  from  the  value  of  his 
shares  of  stock  such  sum  as  is  in  the  same  proportion  to  such 
value  as  the  total  value  of  its  real  estate  and  property  exempt 
by  law  from  taxation  bears  to  the  whole  value  of  all  the  shares 
of  capital  stock  in  said  national  bank.  And  nothing  herein  shall 
be  construed  to  exempt  the  real  estate  of  such  national  bank 
from  taxation.  And  the  assessment  and  taxation  of  such  shares 
of  stock  in  said  national  banking  associations  shall  not  be  at  a 
greater  rate  than  is  made  or  assessed  upon  other  moneyed  capital 
in  the  hands  of  individual  citizens  of  this  state. 
Enacted  March  14,  1899  ;  stats.  1899,  p.  9(5. 
149  Cal.  578,  579,  580. 

Same. 

§  3610.  The  assessor  charged  by  law  with  the  assessment  of 
said  shares  shall,  within  ten  days  after  he  has  made  such  assess- 
ment, give  written  notice  to  each  national  banking  association  of 
such  assessment  of  the  shares  of  its  respective  shareholders ; 
and  no  personal  or  other  notice  to  such  shareholders  of  such 
assessment  shall  be  necessary  for  the  purpose  of  this  act.  And 
in  case  the  tax  on  any  such  stock  is  unsecured  by  real  estate 
owned  by  the  holder  of  such  stock,  then  the  l)ank  in  which  said 
stock  is  held  shall  become  liable  therefor;  and  the  assessor  shall 
collect  the  same  from  said  bank,  which  may  then  charge  the 
amount  of  Ihe  tax  so  collected  to  the  account  of  tlie  stockholder 
owning  such  stock,  and  shall  have  a  lien,  prior  to  all  other  liens, 
on  his  said  stock,  and  the  dividends  and  earnings  thereof,  for  the 
reimbursement  to  it  of  such  taxes  so  paid. 

Enacted  March  14,  1899  ;  stats.  1899,  p.  97. 
149  Cal.  578.  579,  580. 

Exemption  of  church   property. 

§  3611.  All  buildings,  and  so  much  of  the  real  property  on 
which  they  are  situated  as  may  be  required  for  the  convenient 
use  and  occupation  of  said  buildings,  when  the  same  are  used 
solely  and  excbisi\-ely  for  religious  worship,  shall  be  free  from 
taxation;  firoritjaj,  tlial  no  building  so  used  which  may  be 
i-i'iili'il    I'di-    ri'liuiiiiis    iHiriiiiscs    and    rent    reci'jvcd    ]i\    Ihe    owner 


o4S  POLITICAL   CODE.  S  iJ<Jll 

therefor  shall  be  exempt  from  taxatioo.  That  auy  person  claim- 
ing property  to  be  exempt  from  taxation  under  this  section  shall 
make  a  return  thereof  to  the  assessor  annually,  the  same  as 
property  is  listed  for  taxation,  and  shall  accompany  the  same 
by  an  affidavit  sho\Ying  that  the  building  is  used  solely  and 
exclusively  for  religious  worship,  and  that  the  described  portion 
of  the  real  property  claimed  as  exempt  is  required  for  the  con- 
venient use  and  occupation  of  such  building,  and  that  the  same 
is  not  rented  for  religious  punioses  and  rent  received  by  the 
owner  therefor. 

Enacted  February  12,  1903;  stats.  1903,  p.  21. 

See,  also.  Constitution  of  California,  art.  XIII,  §  114. 


CHAPTER   IT. 

DEFINITIONS. 
Skc.  3617.     Definition  of  teims  and  words. 

Definition  of  terms  and  words. 

S  3617.  Whenever  the  term.s  mentioned  in  this  section  arc 
employed  in  this  act,  they  are  employed  in  the  senses  hereafter 
affixed  to  them  : 

First — The  term  "property"  includes  moneys,  credits,  bonds 
(except  railroad  or  quasi-public  corporations),  stocks,  dues, 
franchises,  and  all  other  matters  and  things,  real,  personal,  and 
mixed,  capable  of  private  ownership. 

Second — The  term  "real  estate"  includes : 

1.  The  possession  of,  claim  to,  ownership  of,  or  right  to  the 
jiossession  of  land. 

2.  All  mines,  minorals.  and  quarries  in  and  under  the  land, 
all  timber  belonging  to  individuals  or  corporations,  growing  or 
being  on  the  lands  of  the  United  States,  and  all  rights  and 
privileges  appertaining  thereto. 

3.  A  mortgage,  deed  of  trust,  contract  or  other  obligation  by 
Vv'hieh  a  debt  is  secured,  when  land  is  pledged  for  the  payment 
and  discharge  thereof,  shall,  for  the  purpose  of  assessment  and 
taxation,  be  deemed  and  treated  as  an  interest  in  the  land  so 
pledged. 

4.  Improvements. 

Third — The  term  "iMii)ro\'emonfs"  includes: 

1.   All   liiiildiiigs.  structures,  (ixlures.  fences  ami  iiiipi-<M  einents 


§3<)1T  roi.iTiCAL  CODE.  349 

erected  upon  or  affixed   to  the  hind,  except   telephone  and   telc- 
giaph  lines. 

2.  All  fruit,  nut-bearing,  or  ornamental   trees  and  vines,   not 
of  natural  growth,  excepting  fruit  and  nut-bearing  trees  under 
four  years  of  age,  and  grapevines  under  three  years  of  age. 
?>.  Alfalfa,  after  the  first  year's  planting. 

Fourth — The  term  "personal  property"  includes  everything 
which  is  the  subject  of  ownership,  not  included  within  the  nu>an- 
ing  of  the  term  "real  estate"  or  "improvements." 

Fifth — The  term  "value"  and  "full  cash  value"  mean  the 
amount  at  which  the  property  would  be  taken  in  payment  of  a 
just  debt  from  a  solvent  debtor. 

l^irth — The  term  "credits"  means  those  solvent  debts,  not 
secured  by  mortgage  or  trust  deed,  owing  to  the  person,  firm, 
corporation,  or  association  assessed.  The  term  "debt"  means 
those  unsecurcil  liabilities  owing  by  the  person,  firm,  corpora- 
tion, or  association  assessed  to  bona  Me  residents- of  this  state, 
or  firms,  associations  or  corporations  doing  l)usiness  therein ; 
but  credits,  claims,  debts,  and  demands  due,  owing  or  accruing 
for  or  on  account  of  money  deposited  with  savings  and  loan 
corporations  or  with  building  and  loan  associations,  shall,  for 
the  purpose  of  taxation  be  deemed  and  treated  as  an  interest 
in  the  property  of  such  corporation,  and  shall  not  be  assessed 
to  the  creditor  or  owner  thereof. 

Amended  April  15,  1909:  stats.  1909,  p.  919;  in  effect  in 
sixty  days. 

58  Cal.  140;  02  Cal.  115;  05  Cal.  400;  S3  Cal.  449;  97 
Cal.  220;  104  Cal.  022;  109  Cal.  398.  402;  113  Cal.  400; 
121  Cal.  384;  128  Cal.  596;  137  Cal.  514;  142  Cal.  290; 
144  Cal.  153;  148  Cal.  320;  149  Cal.  585,  000;  15r.  Cal. 
502,  509;   XXXVII  Cal.   Dec.   159,  100,  318,  319,  321: 
VIII  Cal.  App.  Dec.  317. 
See,  also,  Pol.  C.  §  3007  ct  sv<i. 
Assessment:  See  I'ol.  C.  §3027  ct  scj. 
See,  also.  Constitution  of  California,  art.  XIII,  §  1. 


350  POLITICAL  CODK.  §  3627 

CHAPTER  III. 

ASSESSMENT    OF    PROPERTY. 

Sec.  .3627.  Propei'ty,  how  assessed. 

3628.  Franchises.     Other  taxable  property. 

3629.  Contents  of  statement  required  by  assessor. 

3630.  Blanlt  forms  of  statement,  and  affidavit  tlierefor. 
3641.  Property     of     firm     or     corporation     assessed     wliere 

situated. 
3643.      Ferries  and  toll  bridges,  where  assessed. 
3663.      Assessment  of  water  ditches,  toll  roads  and  telegraph 

lines. 
3661.      Agent  of  corporation,   statement   by  to   state  board  of 

equalization. 
366.^.      Assessment  of  railway  franchises  and  properties. 

3666.  Record  of  a.ssessment  of  railways. 

3667.  County  rate  of  taxation  and  notice  to  controller. 

3668.  Publication  by  controller. 

3669.  Certain  taxes  to  be  paid  state  treasurer. 

3670.  Controller  to  sue  for  delinquent  taxes. 

3671.  Basis  of  taxation  for  counties. 

Property,    how   assessed. 

§  3627.  All  taxable  property  must  be  assessed  at  its  full 
cash  value.  Land  and  improvements  thereon  shall  be  separately 
assessed.  Cultivated  and  uncultivated  land,  of  Ihe  same  quality, 
and  similarly  situnled,  shall  he  assesseii  a(  lin'  s:\me  value.  A 
nioi't.uas'e.  deed  of  (rusl.  contr.-ict.  or  oilier  i)hlii;;iti(in  by  M'liicli 
a  debt  is  secured,  shali,  ['or  tiic  purposes  of  assessnienl  and  taxa- 
tion. l>e  d(M>nied  ;;ud  trraleil  as  an  inieresl  in  llie  i)r(i])('rl.\' 
affected  tluM'eby,  except  as  to  railroad  and  ntlier  (|n;isi-i>iiblic 
coriiorations.  In  case  of  debts  so  secureil,  the  Aalue  of  the 
proi)erty  affected  by  such  mortgasre,  deed  of  trust,  contract,  or 
obligation,  less  the  value  of  such  security,  shall  be  assessed  and 
taxed  to  the  owner  of  the  property,  and  the  value  of  such 
security  shall  be  assessed  and  taxed  to  the  owner  thereof,  in  the 
county,  city,  or  district  in  which  the  property  affected  thereby 
is  situated.  '\M\e  taxes  so  levied  shall  be  a  lien  u])on  the  pro])- 
erty  and  seoirity,  and  may  be  paid  b,\-  either  ]iarty  to  such 
s"cm'ity  ;  if  paid  l)y  the  o\\-ner  of  Die  security.  Ihi'tax  so  lexied 
upon  llie  proijerlv  alfectrd  Ihei-eby  shall  becmiK'  a  jiarl  of  the 
deb!    so  sei-ui-rd.       If  llie  owner  of  llie  iini|ieny  .^liall    pay   llie   tax 


S  ."IfViT  POLITICAL  CODE.  351 

SO  levied  on  such  security,  it  shall  constitute  a  paymeut  thereon, 
and.  to  the  extent  of  such  payment,  a  full  discharge  thereof. 
If  any  such  security  oi-  indebtedness  shall  be  paid  by  any  such 
debtor  or  debtors  after  assessment,  and  before  the  tax  Ievy>  the 
amount  of  such  levy  may  likewise  be  retained  by  such  debtor 
or  debtors,  and  shall  be  computed  according  to  the  tax  levy  for 
the  preceding  year.  The  parties  to  any  contract  of  loan  or  to 
any  mortgage,  deed  of  trust  or  other  lien  securing  any  obliga- 
tion, shall  nevertheless  have  the  right  to  provide  by  contract 
rliat  the  debtor  shall  pay  all  or  any  taxes  or  asse.ssments  on  the 
nioii(>y  loaned  or  on  the  mortgage,  deed  of  trust,  or  other  lien, 
or  oil  tlie  ])roperty  thereby  covered  or  the  obligation  therebj' 
secarcil.  and  such  contract  shall  ho  valid  and  constitute  a  waiver 
by  the  debtor  of  all  right  to  treat  the  payment  of  such  tax  or 
assessment  as  a  payment  on  the  amount  loaned  or  secured  or 
as  being  to  any  extent  a  discharge  thereof. 

Amended  March  19,  IDOT ;  stats.  1907.  p.  (JSS. 

(57  Cal.  87  ;  ()8  Cal.  499  ;  72  Cal.  30  ;  83  Cal.  419  ;  9G  Cal. 

035  ;  120  Cal.  840 :  121  Cal.  384  ;  14.")  Cal.  5.5  ;  149  Cal. 

585  ;  1.53  Cal.  502.  509,  015 ;  XXXVII  Cal.  Dec.  319. 
Note. — §  3627.  Amended  by  striking-  out  of  the  section  as  it 
formerly  stood  tlie  words  "and  every  contract  by  wliich  a  delator 
is'  obliged  to  pay  any  tax  or  assessment  on  money  loaned,  or  on 
any  mortgage,  deed  of  trust,  or  otlier  lien,  shall,  as  to  any  interest 
specified  tlierein  and  as  to  such  tax  or  assessment,  be  null  and 
\oid,"  and  adding  in  lieu  thereof  the  last  sentence  now  (1907) 
containi'd  in  the  section,  so  as  to  j?ive  effect  to  tlie  intent  of  the 
amendment  to  article  XIII  of  the  Constitution,  adopted  .Time  12. 
190G  (Stats.  i;)06,  p.  90)  and  ratified  1>>-  tlie  iieojile  :i(  tlie  t,'eneral 
election  held  in  November.  1906. 
Definitions:   See  I'ol.  C.   S3<ilT. 

Iie\'enue  and  taxation,  generally:  Sei'.  also,  ( 'onslitulion  of 
California,  art.  XIII. 

Franchises — Other  taxable   property. 

§  3628.  'The  fi'anchis(>.  roadway,  roadbed,  rails,  and  rolling 
stock  of  all  railroads  operated  in  more  than  one  county  in  this 
state  shall  be  assessed  by  the  state  board  of  equalization,  as'here- 
inafter  ]>rovided  for.  Otlier  franchises,  if  gi'anted  by  the 
aiithoi'il  ii's  of  a  eimnt.w  lil  y.  or  city  and  county,  must  be  assessed 
in  tlie  couniy.  city,  or  ril>  and  coinily  within  which  they  wore 
yranled  ;  il"  i;i-:mied  by  any  other  aiitiiorily  tlie,\-  iiiiisl  be  assessed 
in  the  counl.N-   in   wliich   liie  corporations,   linns,  or  persons  own- 


352  POLITICAL    CODE.  §  3()2S 

iiig  or  liokling  lliciii  lia\e  their  yriuciinil  place  of  business.  All 
other  taxable  property  shall  be  assessed  iu  the  county,  city,  or 
city  and  county,  town,  township,  or  district  in  which  it  is 
situated.  Land  shall  be  assessed  in  parcels  or  subdivisions  not 
exceeding-  six  hundred  and  forty  acres  each  ;  and  tracts  of  land 
containing  more  than  six  hundred  and  fort.v  acres,  which  have 
been  sectionized  by  the  United  States  government,  shall  be 
assessed  by  sections  or  fractions  of  sections.  Lands  sold  by  the 
state  for  which  no  .patent  has  been  issued  shall  be  assessed  the 
same  as  other  lands,  but  the  ov.ner  shall  be  entitled  to  a  deduc- 
tion from  such  assessed  valuation  in  the  amount  due  the  state 
as  principal  ^ipon  the  purchase  price.  The  assessor  must, 
between  the  fir.st  Mondays  in  IMarch  and  July  of  each  year, 
ascertain  the  names  of  all  taxable  inhabitants,  and  all  the  prop- 
erty in  his  county  subject  to  taxation,  except  such  as  is  required 
lo  be  assessed  by  the  state  board  of  equalization,  and  must  assess 
such  property  to  the  i)ei'sons  by  whom  it  was  owned  or  claimed, 
or  in  whose  posse.'ssiou  or  control  it  was.  at  twelve  o'clock 
meridian,  of  the  lirst  j\Ionday  iu  March  next  preceding  ;  but  no 
mistake  in  the  name  of  the  owner  or  supposed  owner  of  real 
property  shall  render  the  assessment  thereof  invalid.  In  assess- 
ing solvent  credits,  not  secured  by  mortgage  or  trust  deed,  a 
reduction  therefrom  shall  be  made  of  debts  due  to  bona  fide 
residents  of  this  state. 

Amended  March  28.  189.5 ;  stats.  1895,  p.  311. 

53  Cal.  6G6 ;  55  Cal.  3G7 ;  58  Cal.  137 ;  G8  Cal.  527 ;  0(5 
Cal.  19;  OS  Cal.  5G1 ;  G9  Cal.  539;  84  Cal.  302;  86  Cal. 
124 ;  87  Cal.  502 ;  90  Cal.  4G5 ;  93  Cal.  473 ;  9G  Cal.  G3G ; 
99  Cal.  38,  G75  ;  121  Cal.  GGO;  129  Cal.  95  ;  130  Cal.  131  ; 
131  Cal.  82,  3.j9  ;  139  Cal.  523  ;  143  Cal.  432  ;  14G  Cal.  53(> ; 
148  Cal.  315.  316,  323,  326,  329,  330,  331,  332;  151  Cal. 
618;  XXXVTI  Cal.  Dec.  159,  319;  2  Cal.  App.  481;  3 
Cal.   App.   620,   621;   6   Cal.   App.   182;   XII   Cal.   App. 
Dec.  33. 
Franchises  sub.iect  to  taxation  :   See  Pol.   C.   §  3617,  subd.   1. 
Railroad  property,   assessment  of :   See  Constitution  of  Cali- 
fornia, art.  XIII,  §  10.  ""- 

As  to  the  manner  of  assessing  railroads:  See  Pol.  C.  §§3664, 
3665. 

Assessed   in   iiaini'  of  linn   oi'  corporal  ion  :    Si'c  Pol.  ('.   S*>6I1. 


§  3629  poLiTicAi  CODE.  353 

Contents  of  statement  required  by  assessor. 

§  3629.  He  must  exact  from  each  person  a  statement,  under 
oath,  setting  forth  specifically  all  the  real  and  persona!  prop- 
erly owned  by  such  person,  or  in  his  possession,  or  TUider  his 
control,  at  twelve  o'clock  M.  on  the  first  Monday  in  March. 
Such  stat(>ment  shall  be  in  writing,  showing  separately  : 

1.  All  property  belonging  to,  claimed  by,  or  in  the  possession 
or  under  the  control  or  management  of  such  person  ; 

2.  All  property  belonging  to.  claimed  by,  or  in  the  possession 
or  under  the. control  or  management  of  any  firm  of  which  such 
person  is  a  member ; 

3.  All  property  belonging  to,  claimed  by,  or  in  the  possession 
or  under  the  control  or  management  of  any  corporation  of 
which  such  person  is  president,  secretary,  cashier,  or  managing 
agent ; 

4.  The  county  in  which  such  property  is  situated,  or  in  which 
it  is  liable  to  taxation,  and  (if  liable  to  taxation  in  the  county 
in  which  the  statement  is  made)  also  the  city,  town,  township, 
school  district,  road  district,  or  other  revenue  districts  in  which 
it  is  situated  ; 

5.  An  exact  description  of  all  lands,  in  parcels  or  sulxli visions, 
not  exceeding  six  hundred  and  forty  acres  each,  and  the  sec- 
tions and  fractional  sections  of  all  tracts  of  land  containing 
more  than  six  hundred  and  forty  acres,  which  have  been  sec- 
tionized  by  the  United  States  government,  improvements  and 
personal  property,  including  all  vessels,  steamers,  and  other 
water  craft ;  and  all  taxable  state,  county,  city,  or  other  munici- 
pal or  public  bonds,  and  the  taxable  bonds  of  any  person,  firm, 
or  corporation,  and  deposits  of  money,  gold  dust,  or  other  valu- 
ables, and  the  na.mes  of  the  persons  with  whom  such  deposits  are 
made,  and  the  places  in  which  they  may  be  found ;  all  mortgages, 
deeds  of  trust,  contracts,  and  other  obligations  by  which  a  debt 
is  secured,  and  the  property  in  the  county  affected  thereby  ; 

().  All  solvent  credits,  unsecured  by  deed  of  trust,  mortgage, 
or  other  lien  on  real  or  personal  property,  due  or  owing  to  such 
person,  or  any  firm  of  which  he  is  a  member,  or  due  or  owing 
to  any  corporation  of  which  he  is  president,  secretary,  cashier, 
or  managing  agent,  deducting  from  the  sum  total  of  such  credits 
such  dolits  only,  unsecured  by  trust  deed,  mortgage,  or  other 
lien  on  real  or  personal  property,  as  may  be  owing  by  such 
person,  firm,  or  corporation  to  bona  fide  residents  of  this  state. 


354  POLITICAL  CODE.  §  3629 

No  debts  shall  he  so  deducted  unless  the  statement  shows  the 
amount  of  such  debt  as  stated  under  oath  in  aggregate ;  providech 
in  case  of  banks  the  statement  is  not  required  to  show  the 
debt  in  detail,  or  to  whom  it  is  owing  ;  but  the  assessor  shall 
have  the  privilege  of  examining  the  books  of  such  banks  to 
verify  said  statement.  WluMiever  one  nn'niber  of  a  firm,  or  one 
of  the  proper  ofticers  of  a  cDrporaf iuii,  Inis  made  a  statement 
showiim  I  lie  property  of  the  tina  or  cDiixir.il  ion.  another  mem- 
licr  of  till'  iirm.  or  another  officer,  need  iiol  inchide  such  prop- 
erty in  till'  statement  made  l)y  hiui :  hut  his  statement  must 
show  tlie  name  of  tlie  person  or  otticer  who  made  the  s(  a  le- 
nient in  which  such  property  is  included. 
Amended  March  7,  ISSl ;  stats.  1881.  p.  .18. 

r.S   CaL   138:   01   Cal.   103:   »>2   CaL   117:   G3   Cal.   527; 

04  Ccxl.  483;  (Jl  Cal.  107:  (i7  Cal.  G2G ;  68  Cal.  15;  71 

Cal.  207 ;  73  Cal.  r,l ;  80  Cal.  88 ;  83  Cal.  570 ;  85  Cal. 

200;  97  Cal.  220;  112  Cal.  590;  115  Cal.  78;  116  Cal. 

29;  121  Cal.  384;  132  Cal.  70;  XXXVII  Cal.  Dec.  322: 

1  Cal.  App.  581 ;  2  Cal.  App.  431  ;  3  Cal.  App.  621  ;  YII 

Cal.  App.  Dec.  33. 
Definitions:   See  Pol.  C.  S  3<)17. 

Blar.k  forms  of  statement,  and  affidavit  therefor. 

S  3630.  The  hoard  of  supervisors  must  furnish  the  assessor 
with  Mank  forms,  as  prescribed  Ity  the  state  board  of  equaliza- 
tion, of  the  statements  ]>rovided  for  in  the  preceding  sections, 
affixing  thereto  an  affid:i\-it.  which  must  he  substantially  as 
follows  : 

■'I, .  do  swear  that  I  am  a  resident  of  the  county 

of  (naming  it)  :  that  the  above  list  contains  a  full  and  correct 
statement  of  all  property  subject  to  taxation  which  I,  or  any 
firm  of  which  I  am  a  member,  or  any  corporation,  association, 
or  company  of  which  I  am  president,  cashier,  secretary,  or 
managing  agent,  owned,  claimed,  possessed,  or  controlled,  at 
twelve  o'clock  m..  on  the  first  Monday  in  March  last,  and  which 
is  not  already  assessed  this  year ;  and  that  I  have  not,  in  any 
manner  whatsoever,  transferred  or  disposed  of  any  property,  or 
placed  any  property  out  of  said  county  or  my  possession  for  the 
purpose  of  avoiding  any  assessment  upon  the  same,  or  of  making 
this  statement;  and  that  the  debts  therein  stated  as  owing  l)y 
me  are  owing  to  liona  fide  residents  of  this  state,  or  to  firms 
or  corporations  doing  l)usiness  in  this  state." 

'I'he  affidavit  to  the  statement  on  behalf  of  a  firm  or  corjiora- 


S  o();^0  POLITICAL  CODE.  355 

liou  must  stato  the  principal  place  of  biisine.ss  of  the  firm  or 
corporation,  aud  iu  other  respects  must  conform  substantially  to 
the  preceding  form. 

Amended  March  2S,  1805;  stats.  1S95,  p.  312. 

68  Cal.  15;  85  Cal.  200;  1  Oal.  Ap]).  245;  2  Cal.  Apii. 

431  ;  yiT  Tal.  App.  Doc.  33. 

Property  of   firm   or   corporation    assessed   where   situated. 

S  3641.  Tlic  iiropcrty  of  (■\ri-y  tinu  and  corporation  niusi  Ix^ 
assessed  iu  the  couut.\-  \\  Ikto  tin-  property  is  situate,  and  nuisl 
i>e  assessed  in  the  name  of  the  lii-ni  or  coi'iioi-ntion. 

lOnacted  March  12,  1S72. 

(;4  Cal.  507;  153  Cal.  5(;4,  5C.!I. 

See,  also,  Fol.  C.  §  3G28,  as  to  place  of  assessmcuit. 

Ferries  and  toll   bridges,   where  assessed. 

S  3643.  A  ferryl^oat  is  ;i  vessel  traversing  across  any  of  the 
waters  of  the  state,  between  two  constant  points,  regularly 
employed  for  the  transfer  of  passengers  and  freight,  authorized 
by  law  so  to  do,  aud  also  any  boat  employed  as  a  part  of  the 
system  of  a  railroad  for  the  transfer  of  passengers  and  freight, 
jilying  at  regular  and  stated  i)eriods  between  two  points. 
Where  ferries  connect  more  than  one  county,  the  wharves,  store- 
houses, aud  all  stationary  property  belonging  to  or  connected 
with  such  ferries,  must  Ije  as.-essed,  aud  the  taxes  paid,  in  the 
couuty  where  located.  The  value  of  the  franchise,  and  water 
(.raft,  and  of  all  toll  bridges  connecting  more  than  one  county, 
must  be  assessed  in  equal  proportions  in  the  counties  connected 
by  such  ferries  or  toll  bridges. 

Amended  March  12,  1885;  stats.  1885,  p.  03. 

Assessment  of  water  ditches,  toll  roads,  and  telegraph   lines. 

i!  3663.  Water  ditches  constructed  for  mining,  manufacturing 
or  irrigating  ])urposes,  and  wagon  and  turnpike  toll  roads  must 
be  assessed  the  snme  as  real  estate  by  the  assessor  of  the  county, 
at  a  rate  per  mile  for  that  portion  of  such  property  as  lies 
within  his  couuty.  All  telegraph  and  telephone  lines  shall  be 
described  iu  the  same  manner  as  real  estate  is  described,  but 
assessed  as  personal  properly  by  the  assessor  of  the  county,  at 
a  rate  pen-  mih;  for  that  i^ortion  of  sucli  property  as  lies  within 
his  connt.v. 

.Vmended  March  28,  1805;  stats.  IS!)."),  p.  31<;. 

70  Cal.   .500;   84  Cal.  74;    137  Cal.   515;    140   Cal.   (idO; 
VIII  Cnl.  .Vpp.  Dec.  .378. 


356  POLITICAL  OODK.  §  3664 

Agent  of  corpoiation,  statement  by  to  state  board  of  equalization. 
§  3664.  The  president,  secretarj',  or  mnnri.i^ing  agent,  or  such 
other  officer  as  the  state  board  of  O(jualjzation  may  designate, 
of  any  corporation,  and  each  person,  or  association  of  persons, 
owning  or  operating  any  railroad  in  more  than  one  county  in 
this  state,  shall,  on  or  before  the  first  Monday  in  April  of  each 
year,  furnish  the  said  board  a  statement,  signed  and  sworn  to 
by  one  of  such  officers,  or  by  the  person  or  one  of  the  persons 
forming  such  association,  showing  in  detail  for  the  year  ending 
on  the  first  Monday  in  March  in  each  year : 

1.  The  whole  number  of  miles  of  railway  in  the  state,  and. 
where  the  line  is  partly  out  of  the  state,  the  whole  number  of 
miles  without  the  state,  and  the  whole  numl)er  within  the  state, 
owned  or  operated  by  such  corporation,  person,  or  association  ; 

2.  The  gross  earnings  of  the  road  in  the  state,  and,  where 
railway,  and  the  value  of  the  same  within  the  state  ; 

3.  A  general  description  of  the  right  of  way  ; 

4.  The  number  of  each  kind  of  all  rolling  stock  used  by  such 
corporation,  person,  or  association  in  operating  the  entire  rail- 
way, including  the  part  without  the  state  ; 

5.  Number,  kind,  and  value  of  rolling  stock  owned  and  oper- 
ated in  the  state  ; 

G.  Number,  kind,  and  value  of  rolling  stock  used  in  the  state, 
liut  owned  by  the  party  making  the  returns  ; 

7.  Number,  kind,  and  value  of  rolling  stock  owned,  but  used 
out  of  the  state,  either  upon  divisions  of  road  operated  by  the 
party  making  the  returns  or  by  and  upon  other  railways. 

Also  showing  in  detail  for  the  year  preceding  the  thirtieth 
day  of  June  : 

1.  The  gross  earnings  of  the  entire  road  ; 

2.  The  gross  earnings  of  the  road  in  the  state,  and,  where 
the  railway  is  let  to  other  operators,  how  much  was  derived 
by  the  lessor  as  rental ; 

3.  The  cost  of  operating  the  entire  road,  exclusive  of  sink- 
ing fund,  expenses  of  land  department,  and  money  paid  to  the 
United  States ; 

4.  Net  income  for  such  year,  and  amount  of  dividend  de- 
clared ; 

5.  Capital  stock  authorized  ; 
0.  Capital  stock  paid  in  : 

7.  Funded  debt; 


§  3GG4  POLITICAL  CODE.  357 

8.  Number  of  shares  authorized  ; 

9.  Number  of  shares  of  stock  issued  ; 

10.  Any  other  facts  the  state  board  of  equalization  may 
require  ; 

•  11.  A  description  of  any  part  or  portion  of  such  railroad 
which  may  be  in  the  possession  and  control  of  any  other  rail- 
road company  or  corporation,  and  operated  by  such  other  cor- 
l>oration  under  a  lease  or  other  contract: 

12.  The  president,  secretary,  or  managing  agent,  or  such  other 
officer  as  the  state  board  of  equalization  may  designate  of  any 
corporation  or  association  of  persons  operating  in  this  state  any 
portion  of  a  line  of  railroad  owned  by  and  belonging  to  some 
other  corporation  or  association,  which  runs  in  more  than  one 
county,  shall  make  the  same  statement  as  is  herein  required  to 
be  made  by  the  foregoing  provisions  of  this  section  by  the  owner 
of  such  railroad ; 

13.  A  description  of  the  road,  giving  the  points  of  entrance 
into  and  the  points  of  exit  from  each  county,  with  a  state- 
ment of  the  number  of  miles  in  each  county.  When  a  description 
of  the  road  shall  once  have  been  given,  no  other  annual  descrip- 
tion thereafter  is  necessary,  unless  the  road  shall  have  been 
changed.  Whenever  the  road,  or  any  portion  of  the  road,  is 
advertised  to  be  sold,  or  is  sold  for  taxes,  either  state  or  cduiily, 
no  other  description  is  necessary  than  that  given  by,  and  the 
same  is  conclusive  upon  the  corporation,  person,  oi'  association 
giving  the  description.  No  assessment  is  invalid  on  account 
of  a  misdescription  of  the  railway,  or  the  right  of  way  for  the 
same.  If  such  statement  is  not  furnished  as  above  provided, 
the  assessment  made  by  the  state  board  of  equalization  upon 
the  property  of  the  corporation,  person,  or  association  failing  to 
fui-nish  the  statement  is  conclusive  and  final. 

Amended  March  10,  3007;  stats.  1907,  p.  GS9. 

(iO  Cal.  12,  27;  (iS  Cal.  TO2  ;  im  Cal.  591;  124  ("al.  498, 
r,02. 

Assessment  of  railway  franchises  and   properties. 

§  3665.  The  state  board  of  equalization  must  meet  at  the 
state  capitol  on  the  third  Monday  in  July,  and  continue  in  open 
session  from  day  to  day,  Sundays  excepted,  until  the  first  Mon- 
day in  August.  At  such  meetings  the  board  must  assess  the 
franchise,  roadway,  roadbed,  rails,  and  rolling  stock  of  all  rail- 
ro.'uls  (iiM'iated   ill   iinii-e   lliaii   one  cuuniy,   bill    francliises  (leri\ed 


358  POLITICAL  CODE.  §  3665 

fi-om  the  United  States  shall  not  be  assessed.  Assessments  must 
be  made  to  the  corporation,  persons,  or  association  of  persons 
owning  the  same.  If  any  portion  of  any  railroad  less  than  the 
whole  is  operated  by  some  corporation  or  association  of  indi- 
viduals other  than  the  owner  of  such  j'ailroad,  under  lease  <jr 
other  contract,  and  such  portion  so  operated  runs  in  more  than 
one  county,  the  value  of  such  part  or  portion  of  such  railroad 
sliall  be  assessed  separate  and  apart  from  the  balance  of  said 
railroad,  and  the  board  shall  assess  the  roadway,  roadbed,  and 
rails  of  such  portion  of  said  railroad,  together  with  the  rolling 
stock  used  thereon  by  the  corporation  or  association  of  indi- 
viduals operating  the  same.  The  depots,  stations,  shops,  and 
buildings  erected  upon  the  space  covered  by  the  right  of  way, 
and  all  other  property  owned  by  such  person,  corporation,  or 
association  of  persons,  are  assessed  liy  the  assessor  of  the  county 
wherein  they  are  situate.  Within  twenty  days  after  the  first 
^Monday  of  August,  the  board  must  apportion  the  total  assess- 
ment of  the  franchise,  roadway,  roadbed,  rails,  and  rolling  stock 
of  each  railway  to  the  counties,  or  cities  and  counties,  in  which 
such  railwa.y  is  located,  in  i)roportion  to  the  number  of  miles  of 
railway  laid  in  such  counties,  and  cities  and  counties.  The 
board  must  also,  within  said  time,  transmit,  by  mail,  to  the 
county  auditor  of  each  county,  or  city  and  county,  to  which  such 
apportionment  shall  have  been  male,  a  statement  showing  the 
length  of  the  main  track  of  such  railway  within  the  county,  or 
city  and  county,  with  a  description  of  the  said  track  within  the 
county,  or  cit.v  and  county,  including  the  right  of  way,  by  metes 
and  bounds,  or  other  description  sufficient  for  identification  (but 
it  shall  not  be  necessary  to  state  the  variable  width  of  such 
right  of  way),  the  assessed  value  per  mile  of  the  same,  as  fixed 
by  a  pro  rata  distribution  i)er  mile  of  Ihe  assessed  valin^  of 
the  whole  franchis<',  roadway,  roadbed,  rails,  and  rolling  stock 
of  such  railway  within  the  stale,  and  the  anioniit  apportioned  to 
the  county,  or  ciiy  ainl  county.  The  audilur  must  enter  the 
statement  on  the  assessment  roll  or  book  of  the  county,  or  city 
and  county,  and  where  the  county  is  divided  into  assessorial 
townships  or  districts,  then  on  the  roll  or  book  of  any  township 
or  district  he  may  select,  and  enter  the  amount  of  the  assess- 
ment apportioned  to  the  county,  or  city  and  county,  in  the 
column  of  the  assessment  book  or  roll,  as  aforesaid,  which  shows 
Ihe  total  \alne  of  all  pro))erfy  for  taxation,  either  of  the  county, 
(■it.\-    and    county,   or   such    township   or   district.     <  >ii    the    third 


§  ?,(',(')')  POLITICAL    CODE.  359 

Monday  in  September,  the  board  of  supervisors  nnist  make,  and 
cause  to  be  entered  in  the  proper  record  book,  an  order  stating 
and  declaring  the  length  of  main  track  of  tlie  railwa.v  assessed 
b.v  the  state  board  of  equalization  within  the  county,  the  assessed 
value  per  mile  of  such  railway,  the  number  of  miles  of  track, 
and  the  assessed  value  of  such  raih\ay  lying  in  each  city,  town, 
lownship,  school  and  road  district,  or  lesser  taxation  district 
in  the  county,  or  city  and  county,  through  which  .such  railway 
runs,  as  fixed  by  the  state  board  of  equalization,  which  shall 
constitute  the  assessment  value  of  said  property  for  taxable 
purposes  in  such  city,  town,  township,  .school,  road,  or  other 
district;  and  the  clerk  of  the  board  of  supervisors  must  transmit 
a  copy  of  each  order  or  equalization  to  the  city  council,  or 
trustees,  or  other  legislative  body  of  incorporated  cities  or  town.'!, 
the  trustees  of  each  school  district,  and  the  authorized  author- 
ities of  other  taxation  districts  through  which  such  railway 
runs.  All  such  railway  property  shall  be  taxable  upon  said 
assessment  at  the  same  rates,  by  the  same  officers,  and  for  the 
same  purposes,  as  the  property  of  individuals  within  such 
city,  town,  towushii).  school,  road,  and  lesser  taxation  districts, 
respectively.  If  the  owner  of  a  railway  assessed  by  the  state 
board  of  equalization  is  dissatisfied  witli  the  assessment  made 
by  the  board,  such  owner  may,  at  the  meeting  of  the  board, 
under  the  provisions  of  section  three  thousand  six  hundred  and 
ninety-two  of  the  Political  Code,  between  the  first  Monday  in 
August  and  the  first  jNIonday  in  Septemlier,  apply  to  the  board 
to  have  the  same  corrected  in  any  particular,  and  the  board  may 
correct  and  increase  or  lower  the  assessment  made  by  it  so  as 
to  equalize  the  same  with  the  assessment  of  other  property  in 
the  state.  If  the  board  shall  increase  or  lower  any  assessment 
previonsl,\-  made  by  it,  it  must  make  a  statement  to  the  county 
auditor  of  the  county  affected  by  the  cliang(>  in  (he  assessment 
of  the  chang(!  made,  and  the  auditor  nuist  ni)l(>  such  change 
upon  the  assessment  book  <ir  roll  of  the  county,  as  dii-(H-ted  by 
the  board. 

Amended  March  10,  VMl ;  stats.  11)07,  p.  (>i)l. 

GO  Cal.  12,  27  ;  68  Cal.  552 ;  88  Cal.  403 ;  105  Oal.  ryjl  ; 

124  Cal.  502;  140  Cal.  87,  SS. 

Record  of  assessment  of  railways. 

§  3666.     Tlu'   state   board   of  Ciiualization   must    in'cpare   each 
vcar  a    bdok.    lo   lir   calliil    ■'i-ccunl    (if  assessments  nf   railwavs," 


360  POLITICAL   CODE.  §  3666 

iu  which  must  be  entered  each  assessment  made  by  the  board, 
either  in  writing  or  by  both  writing  and  printing.  Each  assess- 
ment so  entered  must  be  signed  by  the  chairman  and  secretary. 
Tlie  record  of  the  apportionment  of  the  a.ssessraents  made  by  the 
board  to  the  counties,  and  cities  and  counties,  must  be  made  in  a 
separate  boolj,  to  be  called  "record  of  apportionment  of  railway 
assessments."  In  such  last  described  book  must  be  entered  the 
names  of  the  railways  assessed  by  the  board,  the  names  of  the 
corporations  to  which,  or  the  name  of  the  person  or  association 
to  whom  was  assessed  each  railway  iu  the  state,  the  number  of 
miles  thereof  in  each  county,  or  city  and  county,  the  total  assess- 
ment of  the  franchise,  roadway,  roadbed,  rails,  and  rolling  stock, 
for  purposes  of  state  taxation,  and  the  amount  of  the  appor- 
tionment of  such  total  assessment  to  each  county,  and  city  and 
county,  for  county,  or  city  and  county  taxation.  Before  the 
third  Monday  in  September  of  each  year,  the  secretary  of  the 
state  board  of  equalization  must  prepare  and  transmit  to  the 
controller  of  state  duplicates  of  the  "record  of  assessment  of 
railways,"  and  "record  of  apportionment  of  railway  assess- 
ments," each  certified  by  the  chairman  and  secretary  of  the 
l)oard,  and  to  be  known,  respectively,  as  "duplicate  record  of 
assessment  of  railways"  and  "duplicate  record  of  apportionment 
of  railway  assessments."  In  the  last-named  duplicate  all  neces- 
sary appropriate  columns  must  be  added,  in  which  the  controller 
must  enter  the  amount  of  taxes  iu  installments  due  the  state 
upon  the  whole  assessment,  by  each  corporation,  person,  or 
association,  and  the  amount  of  taxes,  in  installments,  due  each 
county,  gr  city  and  county,  upon  the  assessment  apportioned  to 
each  county,  or  city  and  county,  by  each  corporation,  person, 
or  association.  The  two  du])licates  constitute  the  warrant  for 
the  controller  to  collect  the  state  and  county,  and  city  and 
county  taxes  levied  upon  such  property  assessed  by  the  board, 
and  (he  amount  of  the  apportionment  of  the  assessment  to  each 
county,  and  city  and  county,  respectively. 

Amended  March  IJ),  1!)07 ;  stats.  3007,  p.  G'Jl*. 
60  Cal.  34 ;  124  Cal.  502. 

County  rate  of  taxation  and  notice  to  controller. 

§  3667.  When  the  board  of  supervisors  of  each  county,  and 
city  and  county,  to  which  the  state  board  of  equalization  has 
apportioned  the  assessment  of  railways,  shall  have  fixed  the  rate 
of  county,  or  cit>-  and  coiiiily   taxatinu,   (lie  dork  of   the  boaid 


§  o(>(j7  POLITICAL    CODE.  o(il 

of  supervisors  must,  within  three  days  after  such  rate  has  been 
fixed,  transmit  by  mall,  postage  paid,  to  the  controller,  in  such 
form  as  the  controller  shall  direct,  a  statement  of  the  rate  of 
taxation  levied  by  the  board  of  supervisors  for  county,  or  city 
and  county  taxation.  If  the  clerk  fails  to  transmit  such  state- 
ment in  the  time  herein  provided  for,  he  shall  forfeit  to  the 
state  one  thousand  dollars,  to  be  recovered  in  an  action  brought 
by  the  attorney  general,  in  the  name  of  the  controller.  ()u  or 
before  the  second  Monday  of  October,  the  controller  must  com- 
pute and  enter  in  separate  money  columns,  in  the  "duplicate 
record  of  apportionment  of  railway  assessments,"  the  respective 
sums,  in  dollars  and  cents,  rejecting-  fractions  of  a  cent,  to  be 
paid  by  the  coi'poration,  person,  or  association  liable  therefor,  as 
the  state  tax  upon  the  total  amount  of  the  assessment,  and  the 
county,  or  city  and  county  tax  upon  the  apportionment  of  the 
assessment  to  each  county,  and  city  and  county,  of  the  property 
assessed  to  such  corporation,  person,  or  association  named  in 
said  duplicate  record. 

Amended  March  28,  1895 ;  stats.  1895,  p.  317. 
124  Cal.  502. 

Publication   by  controller. 

§  3668.  Within  ten  days  after  the  second  Monday  in  October, 
the  controller  must  publish  a  notice  for  two  weeks  in  one  daily 
newspaper  of  general  circulation  at  the  state  capital,  and  in 
two  daily  newspapers  of  general  circulation  published  in  the  city 
of  San  Francisco,  specifying : 

1.  That  he  has  received  from  the  state  board  of  efjualization 
Ihe  "duplicate  record  of  assessments  of  railways,"  and  the 
"duplicate  record  of  apportionment  of  railway  assessments." 

2.  That  the  taxes  on  all  personal  property  and  one  half  of 
the  taxes  on  all  real  property  are  now  payable,  and  will  be 
delinquent  on  the  last  Monday  in  November  next,  at  six 
o'clock  p.  M.,  and  that  unless  paid  to  the  state  treasui-er,  at  the 
capitol,  prior  thereto,  five  per  cent  will  be  added  to  the  amount 
thereof,  and  unless  so  paid  on  or  before  the  last  Monday  in 
April  next,  at  six  p.  M.,  an  additional  five  per  cent  will  be  added 
to  the  amount  thereof.  That  the  remaining  one  half  of  the  taxes 
on  all  real  property  will  be  due  and  payable  at- any  time  after 
the  first  Monday  in  January  next,  and  will  be  delinquent  on  the 
last  Monday  in  April  noxt,  at  six  oVlork  v.   m..  and  that  unless 


302  POLITICAL   CODE.  §  3668 

paid  to  the  state  treasurer,  at  the  capitol,  prior  thereto,  five  per 
ceut  will  be  added  to  the  amount  thereof.  On  the  last  Monday 
in  April  of  each  year,  at  six  o'clock  p.  m.,  all  unpaid  taxes  are 
delinquent,  and  thereafter  there  must  be  collected  by  the  state 
treasurer,  or  other  proper  officer,  an  addition  of  ten  per  centum 
upon  those  taxes  which  became  delinquent  the  preceding  Novem- 
ber, and  have  not  been  paid  prior  to  the  said  time  on  the  last 
Monday  in  April  of  each  yeai".  and  an  addition  of  live  per  centum 
upon  all  taxes  for  the  preceding  year,  which  became  delinquent 
on  the  said  last  Monday  in  April,  which  sum.  when  collected, 
must  be  set  aside  by  the  treasurer  as  a  fund  with  which  to  pay 
the  contingent  expenses  of  actions  against  any  delinquents,  the 
said  expenses  to  be  audited  by  the  board  of  examiners,  and  any 
surplus  remaining  sliall  go  into  the  general  school  fund  of  the 
state.  When  any  taxes  are  paid  to  the  state  treasurer,  by  order 
of  the  controller,  upon  assessments  made  and  apportioned  by 
the  state  board  of  equalization,  the  controller  must  forthwith 
notify  the  auditor  and  treasurer,  respectively,  of  each  county, 
and  city  and  county,  that  such  taxes  have  been  paid,  and  of 
the  amount  thereof  to  which  each  county,  and  city  and  county, 
interested  is  entitled.  The  state's  portion  of  the  taxes  must 
be  distributed  by  the  treasurer  to  each  fund  entitled  thereto, 
and  the  portion  belonging  to  the  counties,  and  cities  and  coun- 
ties, must  be  placed  in  a  fund,  to  be  called  "railway  tax  fund." 
to  the  credit  of  each  county,  and  city  and  county,  entitled 
thereto.  When  any  taxes  are  placed  in  the  "railway  tax  fund" 
to  the  credit  of  a  county,  or  city  and  county,  the  controller,  at 
the  next  settlement  with  the  controller  by  the  trea.surer  of  such 
county,  or  city  and  county,  must  draw  and  deliver  to  such 
treasurer  his  warrant  upon  the  state  treasurer  for  the  amount 
in  the  fund  to  the  credit  of  such  county,  or  city  and  county. 
Amended  March  33.  1891 ;  stats.  1891.  p.  441. 

S3  Cal.  390;  lOo  Cal.  576.  583:  124  Cal.  502. 

Certain  taxes  to  be  paid  state  treasurer. 

§  3669.  Each  corporation,  person  or  association  assessed  by 
the  state  board  of  equalization  must  pay  to  the  state  treasurer, 
upon  the  order  of  the  controller,  as  other  moneys  are  required 
to  be  paid  into  the  treasury,  the  state  and  county  and  city  and 
county  taxes  each  year  levied  upon  the  property  so  assessed  to 
it  or  him  by  said  board.  Any  corporation,  person  or  associa- 
tion  dissatisfied   with   the  assessment  made  by  the  lioard,  upon 


§  36G9  POLITICAL    CODE.  363 

the  payment  of  the  taxes  due  upou  the  assessment  complaiued 
of,  and  the  percentage  added,  if  to  be  added,  on  or  before  the 
first  Monday  in  June,  and  the  filing  of  notice  with  the  controller 
of  an  intention  to  begin  an  action,  may,  not  later  than  the  first 
Monday  in  June,  bring  an  action  against  the  state  treasurer  for 
the  recovery  of  the  amount  of  taxes  and  percentage  so  paid  to 
the  treasurer,  or  any  part  thereof,  and  in  the  complaint  may 
allege  any  fact  tending  to  show  the  illegality  of  the  tax,  or  of 
the  assessment  upon  which  the  taxes  are  levied,  in  whole  or  in 
part.  When  any  person,  corporation  or  association  has  made 
payment  of  any  of  the  taxes,  penalties,  percentages,  or  costs 
herein  referred  to.  which  have  been  subsequently  adjudged 
illegal,  and  still  remain  in  the  hands  of  the  state  treasurer,  such 
person,  corporation  or  association  shall  be  entitled  to  a  refund 
thereof,  although  the  payment  of  sucli  taxes,  penalties,  pei'cen- 
tage.s  and  costs  may  not  have  been  under  protest,  nor  a  notice 
filed  with  the  controller  of  an  intention  to  begin  an  action  to 
recover  the  same,  as  hereinbefore  provided.  And  in  case  of  fail- 
ure or  refusal  by  the  state  treasurer  to  pay  the  same  to  such 
person,  corporation  or  association  upon  its  demand,  an  action 
may  be  brought  against  the  state  treasui-er  for  the  recovery  of 
the  amount  of  taxes  and  percentage  so  paid  to  the  treasurer  or 
any  part  thereof.  Whenever  under  the  provisions  of  this  sec- 
tion an  action  is  commenced  against  the  state  treasurer,  a  copy 
of  the  complaint  and  of  the  sunmions  must  be  served  upon  the 
treasurer  within  ten  days  after  the  complaint  has  been  filed,  and 
the  treasurer  has  thirty  days  within  which  to  demur  or  answci-. 
At  the  time  the  treasurer  demurs  or  answers,  he  may  demand 
that  the  action  be  tried  in  the  superior  court  of  the  county  of 
Sacramento.  The  attorney  generfil  must  defend  the  action.  The 
provisions  of  the  Code  of  Civil  Pi'ocedure  relating  to  pleadings, 
proofs,  trials  and  appeals  are  applicable  to  the  i)roceedings  herein 
provided  foi*.  If  the  final  judgment  be  against  the  treasurer, 
upon  presentation  of  a  certified  copy  of  such  judgment  to  the 
controller  he  shall  draw  his  warrant  upon  the  state  treasurer, 
who  must  pay  to  the  plaintiff  the  amount  of  the  taxes  so  declared 
to  have  l)een  illegally  collected  :  and  the  cost  of  such  action, 
audited  by  the  board  of  examiners,  must  be  paid  out  of  any 
money  in  the  general  fund  of  the  treasury,  which  is  hereby 
appropriated,  and  the  controller  may  demand  and  receive  from 
the  county,  or  city  and  county  interested,  the  proportion  of  such 
costs,  or  limy  deduct  such  )iroportion   from  any  money  then  or 


364  POLITICAL   CODE.  §  3669 

to  become  clue  to  said  county,  or  city  and  county.  Such  action 
must  be  begun  on  or  before  the  first  Monday  in  June  of  the 
year  succeeding  the  passage  of  this  act  in  the  case  of  taxes 
heretofore  paid,  and  on  or  before  the  first  Monday  in  June  of 
the  year  succeeding  the  year  in  which  the  taxes  were  levied, 
and  a  failure  to  begin  such  action  is  deemed  a  waiver  of  the 
rights  of  action. 

Amended  March  22,  1905 ;  stats.  1905,  p.  823. 

83  Cal.  396;  105  Cal.  583;  117  Cal.  440;  124  Cal.  502. 

Controller  to  sue  for  delinquent  taxes. 

§  3670.  Within  sixty  days  after  the  first  Monday  in  June 
of  each  year,  the  controller  must  begin  an  action  in  the  proper 
court,  in  the  name  of  the  people  of  the  State  of  California, 
to  collect  the  delinquent  taxes  upon  the  property  assessed  by 
the  state  board  of  equalization;  such  suit  must  lie  for  the  taxes 
due  the  state,  and  all  the  counties,  and  cities  and  counties,  upon 
property  assessed  by  the  board  of  equalization,  and  appearing 
delinquent  upon  the  "duplicate  record  of  apportionment  of  rail- 
way assessments."  The  provisions  of  the  Code  of  Civil  Pro- 
cedure relating  to  pleadings,  proofs,  trials,  and  appeals  are  appli- 
cable to  the  proceedings  herein  provided  for.  In  such  action, 
should  a  writ  of  attachment  be  demanded  and  issued,  no  bond 
nor  affidavit  previous  to  the  issuing  of  said  attachment  is 
required.  If  in  such  action  the  plaintiff  recover  judgment,  there 
shall  be  included  in  the  judgment  as  counsel  fees,  and  in  case 
of  judgment  of  taxes,  after  suit  brought  but  before  judgment, 
the  defendant  must  pay  as  counsel  fees  such  sum  as  the  court 
may  detei-mine  to  be  reasonable  and  just.  Payment  of  the 
taxes,  or  the  amount  of  the  judgment  in  the  same,  nuist  be  made 
to  the  state  treasurer.  In  such  actions  the  "duplicate  record  of 
assessments  of  railways"  and  the  "duplicate  record  of  apportion- 
ment of  railway  assessments,"  or  a  copy  of  them  certified  by  the 
controller,  showing  unpaid  taxes  against  any  corporation,  per- 
son, or  association  for  property  assessed  by  the  state  board  of 
equalization,  is  prima  facie  evidence  of  the  assessment,  the 
property  assessed,  the  delinquency,  the  amount  of  the  taxes  due 
and  unpaid  to  the  state,  and  counties,  or  cities  and  counties 
therein  named,  and  that  the  corporation,  person,  or  association 
is  indebted  to  the  iieople  of  the  State  of  California  in  the  amount 
of  taxes,  state  and  county,  and  city  and  county,  therein  appear- 


S  3670  POLITICAL   CODE.  365 

ing  unpaid,  and  that  all   the  forms  of  law   in   relation   to   the 
assessment  and  levy  of  such  taxes  have  been  complied  with. 
Amended  March  28,  1895  ;  stats.  1895,  p.  318. 

68  Cal.  552;  69  Cal.  648;  83  Cal.  396;  105  Cal.  583;  lUS 

Cal.  48 ;  124  Cal.  177  ;  137  Cal.  661. 

Basis  of  taxation  for  counties. 

S  3671.  The  assessment  made  by  the  county  assessor,  and  that 
of  the  state  board  of  equalization,  as  apportioned  by  the  boards 
of  supervisors  to  each  city,  town,  township,  school,  road,  or 
other  district  in  their  respective  counties,  or  cities  and  counties, 
shall  be  the  only  l^asis  of  taxation  for  the  county,  or  any  sub- 
division thereof,  except  in  incorporated  cities  and  tov\'ns,  and  may 
also  be  taken  as  such  basis  in  incorporated  cities  and  towns 
when  the  proper  authorities  may  so  elect.  All  taxes  on  rail- 
road property  imposed  upon  townships,  I'oad,  school  or  other 
local  districts,  unless  otherwise  provided  by  law,  shall  be  col- 
lected by  the  county  tax  collector  in  the  same  manner  and  at  the 
same  time  as  county  taxes. 

Amended  March  13,  1909;  stats.  1909,  p.  3.59;  in  effect  in 
sixty  days. 

68  Cal.  .5.52;  91  Cal.  434;  137  Cal.  661. 


CHAPTER  IV. 

EQUALIZATION    OF  TAXES. 

Article  II. 

State  Board  of  Equalization. 

Sec.  3692.     Powers  and  duties  of  board. 

Powers  and  duties  of  board. 

S  3692.  The  powers  and  duties  of  the  state  board  of  equaliza- 
tion are  as  follows : 

1.  To  prescribe  rules  for  its  own  government  and  for  thr 
transaction  of  its  business. 

2.  To  prescribe  rules  and  regulations,  not  in  conflict  with  the 
constitution  and  laws  of  the  state,  to  govern  supervisors  when 
equalizing,  and  assessors  when  assessing. 

3.  To  make  out,  prepare,  and  enforce  the  use  of  all  forms  in 
relation  to  the  assessment  of  property,  collection  of  taxes,  and 
revenue  of  this  state. 


366  POLITICAL  CODE.  §  3692 

4.  To  hold  regular  meetings  at  the  state  capital  on  the  second 
Monday  in  each  month,  and  such  special  meetings  at  any  place 
within  the  state  as  the  chairman  may  direct.  At  such  special 
meetings  the  board  may  transact  any  and  all  business  and  per- 
form all  duties  imposed  upon  it  by  law  and  give  and  enter  any 
and  all  orders  and  decrees  within  its  jurisdiction;  provided, 
that  the  final  action  of  the  board  in  inci'easing  or  lowering  of 
a  county  assessment  roll,  or  the  final  act  in  making  the  assess- 
ment, of  a  railroad,  shall  be  performed  only  at  the  state  capital. 

5.  To  annually  assess  the  franchise,  roadway,  roadbed,  rails, 
and  rolling  stock  of  all  railroads  operated  in  more  than  one 
county  in  this  state,  at  their  actual  value,  on  the  first  Monday 
in  March,  at  twelve  o'clock  m.,  and  to  apportion  such  assess- 
ment to  the  counties,  and  cities  and  counties  in  which  such 
railroads  are  located,  in  proportion  to  the  number  of  miles  of 
railway  laid  in  such  counties,  and  cities  and  counties,  in  the 
manner  provided  for  in  section  three  thousand  six  hundred  and 
sixty-four  of  said  code. 

6.  To  equalize  the  assessment  of  each  mortgage,  deed  of 
trust,  contract  or  other  obligation  by  which  a  debt  is  secured, 
and  which  affects  property  situate  in  two  or  more  counties,  and 
to  apportion  the  assessment  thereof  to  each  of  such  counties. 

7.  To  transmit  to  the  assessor  of  each  county,  or  city  and 
county,  its  apportionment  of  the  assessments  made  by  said 
Ijoard  upon  the  franchises,  roadways,  roadbeds,  rails,  and  roll- 
ing stock  of  railroads,  and  also  its  apportionment  of  the  assess- 
ments made  by  such  board  upon  mortgages,  deeds  of  trust,  con- 
tracts, and  other  obligations  by  which  debts  are  secured,  in  the 
manner  provided  for  in  section  three  thousand  six  hundred  and 
sixty-four  of  said  code. 

8.  To  meet  at  the  state  capital  on  the  first  Monday  in  August, 
and  remain  in  session  from  day  to  day,  Sundays  excepted, 
until  the  second  Monday  in  September. 

9.  At  such  meeting  to  equalize  the  valuation  of  the  taxable 
property  of  the  several  counties  in  this  state  for  the  purposes 
of  taxation  ;  and  to  the  end,  under  such  rules  of  notice  to  the 
clerk  of  the  board  of  supervisors  of  the  county  affected  thereby, 
as  it  may  prescribe,  to  increase  or  lower  the  entire  assessment 
roll  so  as  to  equalize  the  assessment  of  the  property  contained 
in  said  roll  and  make  the  assessment  conform  to  the  true  value 
in  money  of  the  property  contained  in  said  roll  and  make  the 


§  3692  POLITICAL  coriE.  307 

assessment  couform  to  the  true  value  in  money  of  the  property 
assessed,  and  to  fix  the  rate  of  state  taxation,  and  to  do  the 
things  provided  in  section  three  thousand  six  hundred  and  ninety- 
three  of  said  code;  provided,  that  no  board  of  equalization  shall 
raise  any  mortgage,  deed  of  trust,  contract,  or  other  obligation 
by  which  a  debt  is  secured,  money,  or  sulvent  crcdils,  above  its 
face  value. 

10.  Whenever  deemed  necessary,  to  \isit  as  a  board,  or  by 
the  individual  members  thereof,  or  to  send  its  secretary  or  <luly 
appointed  representative  to,  th(>  several  counties  and  cities  for 
the  purpose  of  inspecting  property  and  learning  the  value 
thereof,  and  of  collecting  information  to  enable  the  board  to 
equalize  assessments  and  levy  the  taxes  as  provided  b.\-  law. 

11.  To  call  before  the  board,  or  any  member  thereof,  on  such 
visit,  any  officers  of  the  county,  and  to  require  them  to  pro- 
duce any  public  records  in  their  custody,  and  to  give  testimony 
on  such  sub.iects  deemed  useful  to  the  board  in  its  inves- 
tigations. 

12.  To  issue  su)i])cenas  for  the  attendance  of  witnesses  or  the 
production  of  books  before  the  board,  or  any  member  thereof : 
which  subpoenas  must  be  signed  l>y  a  memlier  of  the  board, 
and  may  be  served  by  any  person. 

13.  To  appoint  a  secretary,  prescribe  and  enforce  his  duties. 
The  secretary  shall  hold  his  office  during  the  pleasure  of  the 
board. 

14.  To  report  to  the  governor,  biennially,  a  statement  showing  : 
First — The  acreage  of  each  county  in  the  state  that  is  assessed. 
Second — The  amount  assessed  per  acre. 

Third — The  aggregate  value  of  all  town  and  city  lots. 

Fourth— The  aggregate  value  of  all  real  estate  in  the  state. 

Fifth — The  kinds  of  personal  property  in  each  county,  and 
the  value  of  each  kind. 

Sixth — The  aggregate  value  of  all  personal  property  in  the 
state. 

Seventh — Any  information  relative  to  the  assessment  of  prop- 
erty and  the  collection  of  revenue. 

Eighth — Such  further  suggestions  as  it  shall  deem  proper. 

15.  To  keep  a  record  of  all  its  proceedings. 

16.  To  require  any  person  having  knowledge  of  the  business 
of  any  railroad  company,  the  assessment  of  which  is  to  be  made 
by  the  board,  or  having  the  custody  of  the  books,  accounts,  and 


.'><)S  POLITICAL    CODE.  §  3G92 

papers  of  such  compauy,  to  attend  before  the  board,  or  any 
member  thereof,  and  bring  with  him  for  inspection  any  books, 
accounts,  or  papers,  of  such  company  in  his  possession  or  under 
liis  control,  and  to  testify  under  oath  touching  any  matter  rela- 
ling  to  tlie  organization  or  business  of  such  compan.w 

17.  To  examine  the  boulis,  accounts,  and  papers  of  all  rail- 
load  companies  recjuircd  by  law  to  report  to  the  board,  and  to 
employ  an  expert  accounlant  or  nccountanis-  to  assist  in  liic 
e.Kamiuation  of  the  books,  aivounts,  and  papers  of  any  comiiauy 
when  in  the  judgment  of  said  board  the  exigencies  of  the  cas(! 
may  so  require. 

IS.  Any  officer,  employee,  or  agent  of  a  railroad  company 
required  to  report  to  the  board,  or  any  county  officer,  or  witness, 
duly  subpoenaed,  who  shall  refuse  or  neglect  to  attend  before 
the  board,  or  any  member  thereof,  or  shall  refuse  to  bring  with 
him  and  submit  for  inspection  any  books,  accounts,  or  papers 
in  his  possession,  custody,  or  control,  or  shall  refuse  to  answer 
any  question  put  to  him  by  any  member  of  the  board,  touching 
the  matters  under  investigation  by  the  board,  shall  be  deemed 
guilty  of  contempt,  and  may  be  punished  by  a  court  of  com- 
petent jurisdiction,  by  imprisonment  in  the  county  jail,  not  to 
exceed  five  days,  or  by  fine  not  to  exceed  fivr  hundred  dollars, 
or  by  both  such  fine  and  imprisonment. 

Amended  March  13.  1009;  stats.  1900,  p.  :if.O ;  in  effect 
imm«Hliately. 

4G  Cal.  r,05;  00  Cal.  27:  137  Cal.  522. 


§  4004  POLITICAL    CODE.  3G9 


PART  IV. 

OF  THE  GOVERNMENT  OF  COUNTIES,  CITIES 
AND  TOWNS. 


TITLE  II. 

The  Government  of  Counties. 

fOld  title  II  repealed  and  a  new  title  11  suLstituled  by  an  act 
approved  March  IS,  1907,  "relating^  to  the  establishment  of  a 
uniform  system  of  county  and  township  governments."  Stats. 
1907,   p.   354.] 

CIIAFTEII  I. 

COUNTIES    AS    BODIES    CORPORATE. 

Sec.  4001.      Restriction  on  loaning  credit. 

Restriction   on   loaning  credit. 

S  4004.  Xo  county  shall,  iu  any  manner,  give  or  loan  its 
credit  to  or  in  aid  of  any  person  or  corporation.  An  indebted- 
ness or  liability  incurred  contrary  to  tliis  provision  shall  lie 
void. 

Enacted  March  38,  1007:  stats.  V.)U~.  p.  ;].55. 

CHAPTER  IV. 

LEGISLATIVE    DEPARTMENT 

Article  IV. 

General    Permanent    Powers. 

Skc.  4041.      General  powers  of  th<'  board. 

General   powers  of  the   board. 

§  4041.  The  boards  of  suiiervisors,  in  their  respective  counties, 
shall  have  jurisdiction  and  power,  under  such  limitations  and 
restrictions  as  are  prescribed  by  law. 


370  POLITICAL    CODE.  §  4041 

4.  To  lay  out,  maiutain,  coutrol,  coustruet,  rcpaii'.  and  man- 
age public  roads,  turnpikes,  ferries,  wharves,  chutes,  and  other 
shipping  facilities  and  bridges  within  the  county,  unless  other- 
wise provided  by  law,  and  to  grant  franchises  and  licenses  to 
collect  tolls  thereon  ;  provided,  where  the  cost  of  th<!  construction 
of  any  bridge,  wharf,  chute,  or  other  shipping  facilities  that  may 
be  built  under  the  provisions  of  this  subdivision  exceeds  the  sum 
of  five  hundred  dollars  they  must  cause  to  be  prepared  and  must 
adopt  plans  and  specifications,  strain  sheets,  and  working  details, 
and  must  advertise  for  bids  for  the  construction  of  such  bridge, 
wharves,  chutes,  or  other  shipping  facilities,  unless  otherwise 
provided  by  law,  in  accordance  with  the  plans  and  specifications 
so  adopted.  All  bidders  shall  be  afforded  opportunity  to  examine 
such  plans  and  specifications,  and  said  board  shall  award  the 
contract  to  the  lowest  responsible  bidder,  and  the  plans  and 
specifications  so  adopted  shall  be  attached  to  and  become  a  part 
of  the  contract;  and  the  person  or  corporation  to  whom  the  con- 
tract is  awarded  shall  be  required  to  execute  a  liond,  to  be 
approved  by  said  boai-d,  for  the  faithful  performance  of  such 
contract;  provided,  that  after  the  submission  of  the  bids  as 
herein  provided,  the  board  of  supervisors  being  advised  by  the 
county  surveyor  that  the  work  can  be  done  for  a  sum  less  than 
the  lowest  responsible  bid,  it  shall  then  be  their  privilege  to 
reject  all  bids  and  to  order  the  work  done  or  structure  built  by 
day's  work,  under  the  supervision  and  control  of  the  said  sur- 
veyor ;  provided  further,  that  the  surveyor  in  such  cases  shall 
be  held  personally  responsible,  under  his  oflicial  bond,  to  con- 
struct said  bridge  or  structure,  according  to  his  plans  and  specifi- 
cations, at  a  cost  not  to  exceed  the  amount  of  the  lowest  respon- 
sible bid  received  ;  provided,  that  the  road  commissioners  or  road 
overseers  in  their  respective  districts  shall  employ  all  labor 
required  and  direct  the  conduct  of  work  of  any  kind  upon  any 
and  all  public  roads ;  provided,  further,  that  in  cases  of  great 
emergency,  by  the  unanimous  consent  of  the  whole  board,  they 
may  proceed  at  once  to  replace  or  repair  any  and  all  bridges 
and  structures  without  notice. 

:1:  :i:  *  :|e  :»:  ^::  *  :{:  J^  * 

22.  To  license,  in  the  exercise  of  their  police  powers,  and  for 
the  purpose  of  regulation,  as  herein  provided,  and  not  other- 
wise, all  and  every  kind  of  business  not  prohibited  by  law,  and 
transacted  and  carried  on  within  the  limits  of  their  respective 
jurisdictions,  and  all  shows,  exhibitions,  and  lawful  games  car- 


§  4041  POLITICAL   CODE.  371 

ried  on  therein,  to  fix  the  rates  of  license  lax  upon  the  same,  and 
to  provide  for  the  collection  of  the  same  by  suit  or  otherwise  ; 
provided,  that  every  honorably  discharged  soldier,  sailor,  or 
marine  of  the  United  States,  who  is  unable  to  ol)tain  n  livfli- 
hood  by  manual  labor,  shall  have  the  right  to  hawk,  peddl*'  niid 
vend  any  goods,  wares  or  merchandise,  except  spirituous,  malt, 
vinous  or  other  intoxicating  liquor,  without  payment  of  any 
license,  tax  or  fee  whatsoever,  whether  municipal,  county  or 
state,  and  the  board  of  supervisors  or  legislative  body  shall  issue 
to  such  soldier,  sailor  or  marine,  without  cost,  a  license  therefor  ; 
provided,  however,  no  license  can  be  collected,  or  any  penalty  for 
the  non-payment  thereof  enforced  against  auj^  commercial 
traveler  whose  business  is  limited  to  the  goods,  wares,  and  mer- 
chandise sold  or  dealt  in  in  this  state  at  wholesale. 

*  :{J  :!:  :(i  *  *  *  *  *  ^:  * 

32.  To  grant  licenses  and  franchises  for  constructing,  keeping 
and  taking  tolls  on  roads,  bridges,  ferries,  wharves,  chutes,  booms, 
and  piers,  and  to  grant  franchises  along  and  over  the  public 
roads  and  highways  for  all  lawful  purposes,  upon  such  terms 
and  conditions  and  restrictions  as  in  their  judgment  may  be 
necessary  and  proper,  and  in  such  manner  as  to  present  the  least 
possible  obstruction  and  inconvenience  to  the  traveling  public. 

33.  To  grant,  on  such  terms,  conditions,  and  restrictions  as  in 
their  judgment  may  be  necessary  and  proper,  licenses  and  fran- 
chises for  taking  tolls  on  public  roads  or  highways,  whenever  in 
their  judgment  the  expense  necessary  to  operate  or  maintain 
such  public  roads  or  highways  as  free  public  highways  is  too- 
great  to  justify  the  county  in  so  operating  or  maintaining  them. 
It  shall  always  be  a  condition  attached  to  the  granting  of  such 
licenses  and  franchises,  that  such  roads  or  highways  shall  be 
kept  in  reasonable  repair  by  the  person  or  persons  to  whom  such 
licenses  or  franchises  may  be  granted. 

Amended  March  25.  1909;  stats.  1909,  p.  756;  in  effect  in 
sixty  days. 

Ed.  Note. — §  4041.  Also  amended  March  3,  1909  ;  stats.  1909, 
p.  126  ;  the  later  amendment  is  here  given.  There  is  no  difference 
between  subdivisions  4,  22,  32  and  33  occurring  in  the  two  amend- 
ments. 


372  POLITICAL   CODE.  §  4047 

Article  V. 

Additional  Powers  and   Duties. 

Sec.  4  0-17.     Franchises   for   construction    of   paths   and   roads   for 
liicycles  and  other  horseless  vehicles. 

Franchises  for  construction  of  paths  and   roads  for  bicycles  and 
other  horseless  vehicles. 

S  4047.  The  board  of  .supervisors  may  under  such  regulations, 
restrictions  and  limitations  as  it  may  provide  subject  to  exist- 
ing laws,  grant  franchises  for  the  construction  of  paths  and 
roads,  either  on  the  surface,  elevated  or  depressed,  on,  over, 
across,  or  under  the  streets  and  public  highways  of  their  respec- 
tive counties  for  the  use  of  bicycles,  tricycles,  motorcycles,  and 
other  like  horseless  vehicles  propelled  by  the  rider,  and  for  a 
term  not  exceeding  fifty  years. 

Enacted  March  18,  1907 ;  stats.  1907.  p.  373. 


CHAPTER   X. 

SALARIES  AND    FEES   OF   OFFICE. 

Aim  CLE  LX. 

Fees  of  Officers. 

Sec.  4  300.      Fees  of  county,  township,  and  other  officers. 
4  300ft.   County  clerk's  fees. 

Fees  of  county,  township,  and  other  officers. 

S  4300.  The  following  county,  township,  and  other  ofiicers 
shall  charge  and  collect  the  following  fees : 

Enacted  March  18,  1907;  stats.  1907,  p.  548. 
1  Cal.  App.  245. 

County   clerk's  fees. 

S  4300«.  On  the  commencement  of  any  action  or  proceeding 
in  the  sn|)erior  court,  except  probate  itroceedings,  or  on  an 
appeal  thereto,  to  be  i»aid  by  the  party  commencing  such  action 
or  proceeding,  or  taking  such  appeal,  five  dollars. 

On  the  filing  of  a  petition  for  letters  of  administration,  testa- 
mentary, or  guardianship,  five  dollars,  to  be  paid  by  the  peti- 
tioner. 


§  4300a  POLITICAL   CODE.  373 

On  filing  the  petition  to  contest  any  will  or  codicil,  three  dol- 
lars. 

On  the  appearance  of  any  defendant,  or  any  number  of  defend- 
ants answering  jointly,  to  be  paid  upon  filing  the  first  paper  in 
the  action  by  him  or  them,  two  dollars. 

On  placing  any  action,  excepting  a  probate  proceeding  or 
default  case,  on  the  calendar  for  trial  or  hearing,  to  be  paid  by 
the  party  at  whose  request  such  action  or  proceeding  is  so 
placed,  two  dollars. 

For  every  additional  defendant  appearing  separately,  one 
dollar. 

The  foregoing  ftvs  shall  be  in  full  for  all  services  rendered 
by  such  clerk  in  the  cause,  to  and  including  the  making  uj)  of 
the  judgment  roll. 

On  the  tiling  of  any  notice  of  motion  to  move  for  a  new  trial 
of  any  civil  action  or  proceeding,  the  party  filing  same  shall 
pay  to  the  clerk,  in  full  for  all  services  to  be  rendered  in  con- 
nection with  said  motion,  except  as  hereinafter  in  this  section 
provided,  two  dollars. 

For  issuing  an  execution  or  order  of  sale  in  any  action,  one 
dollar. 

In  all  proceedings  begun  or  acts  performed  prior  to  this  sec- 
tion becoming  a  law,  such  fees  and  charges  as  were  provided  by 
law  at  the  time  such  proceedings  were  begun  or  acts  performed. 

The  clerk  shall  also  charge  and  collect  the  following  fees  and 
compensation  not  above  provided  for : 

For  any  copy  of  any  record,  proceeding,  or  paper  on  file  in  the 
office  of  the  clerk  relating  to  any  civil  action  i^ending  in  said 
court,  when  such  copy  is  made  by  him,  per  folio,  ten  cents. 

For  each  certificate  of  the  clerk,  under  the  seal  of  the  court, 
twenty-five  cents. 

For  filing  each  claim  iu  prol)ate  or  insolvency  proceedings, 
fifteen  cents. 

No  fees  shall  be  allowed  or  charged  by  the  clerk  for  services 
rendered  in  any  criminal  case. 

For  services  rendered  by  the  clerk,  not  in  connection  with 
civil  actions  or  proceedings  in  court,  he  shall  charge  and  col- 
lect, for  the  benefit  of  the  county,  the  following  fees  : 

For  issuing  marriage  license,  one  half  to  be  paid  to  the  county 
recorder,  two  dollars. 

For  filing  and  indexing  articles  of  incorporation,   one  dollar. 


374  POLITICAL  CODE.  §  4300a 

For  filiug  aud  indexing  certificates  of  co-partnership,  one 
dollar. 

For  filing  and  indexing  all  papers  to  be  kept  by  him,  other 
llinu  papers  filed  in  actions  or  proceedings  in  court,  and  official 
Ixinds  and  certificates  of  appointment,  each,  twenty-five  cents. 

For  issuing  any  license  required  by  law,  other  than  marriage 
licenses,  one  dollar. 

For  examining  and  certifying  to  a  copy  of  any  paper,  record 
or  proceedings  prepared  by  another,  aud  presented  for  his  certifi- 
cate, fifty  cents,  and  one  cent  per  folio  for  comparing  the  said 
copy  with  the  original. 

For  making  satisfaction  of  or  credit  on  judgment,  twenty-fivi' 
cents. 

For  receiving  aud  filing  remittitur  from  supreme  court,  fifty 
cents. 

For  administering  each  oath,  without  certificate,  except  in  a 
pending  action  or  proceeding,  ten  cents. 

For  taking  any  affidavit,  except  in  criminal  cases,  twenty-five 
cents. 

For  taking  aud  approving  each  undertaking,  and  the  justifica- 
tion thereof,  except  in  criminal  cases,  fifty  cents. 

For  searching  records  or  files,  for  each  year,  fifty  cents. 

For  taking  acknowledgment  of  any  deed  or  other  instrument, 
including  the  certificate,  fifty  cents. 

For  filing  notices  of  appeal  and  appeal  bonds,  each,  twenty- 
five  cents. 

Enacted  March  18,  1907 ;  stats.  1907,  p.  548. 


CHAPTER  XII. 
MISCELLANEOUS  PROVISIONS. 

Sec.  4323.     When   majority  of  supervisors  interested   in   applica- 
tion, procedure. 

When  majority  of  supervisors  interested  in  application,  pro- 
cedure. 
§  4323.  Whenever  an  application  is  made  to  the  board  for 
an  order,  franchise,  or  license  relating  to  any  toll  road,  bridge, 
ferry,  wharf,  chute,  pier,  or  other  subject  over  which  the  board 
has  jurisdiction,  in  which  a  majority  of  the  board  are  inter- 
ested,  the   application,   by   order  of   the  board,   must   be   trans- 


§  4323  POLITICAL  CODE.  375 

ferred  to  the  superior  court  of  the  county.  The  clerk  of  the 
board  must  thereupon  certify  the  application,  and  all  orders 
and  papers  relating  thereto,  to  said  superior  court,  and  there- 
after the  said  superior  court  shall  li;i\i^  full  Jurisrliclion  to  hear 
and  determine  the  application. 

Enacted  March  18,  ]007;  stals.  I'.sdT.  i..  '>:,s. 


TITLE  III. 

The  Government  of  Cities. 

CHAPTEK  III. 
LEGISLATIVE   POWERS. 

.Sei'.  I -J  1 0.      Coninion    council    may    grant    authority    to    gas    and 
water  companies. 

4411.  Reservations  by  cities. 

4412.  Contj-act  for  gas  and  water. 

4413.  Restrictions  and  conditions  to  be  imposed. 

Common    council    may    grant    authority    to    gas    and    water    com- 
panies. 
§  4410.     The  common  council,  by  ordinance,  approved  by  the 
mayor,  may  grant  to  any  gas  or  water  company  the  privilege 
of  laying  down  pipes  in  the  streets  and  alleys  of  such  city  for 
supplying  gas  and  water  for  the  streets  and  buildings  thereon, 
for  a  term  not  exceeding  twenty-five  years. 
Enacted  March  12,  1S7L'. 
2  Cal.  App.  722. 

Reservation   by  cities. 

§  4411.  In  exercising  the  authority  mentioned  in  preceding 
section,  the  common  council  must  reserve  the  right  to  grant 
similar  privileges  to  other  companies,  and  require  the  laying 
down  of  the  pipes  to  be  under  the  reasonable  direction  of  the  city 
authorities,  and  to  be  so  laid  as  to  do  no  injury  to  the  proper 
use  of  the  paving,  planking,  or  macadamizing  of  the  sti'eets  and 
alleys,  nor  to  private  property  situate  thereon. 

Enacted  March  12.  1S72. 
2  Cal.  App.  722. 


376  POLITICAL   CODE.  §  4412 

Contract  for  gas  and  water. 

§  4412.  The  common  council  may  contract  with  sas  and 
water  companies  for  supplying-  the  streets  and  public  buildings 
with  all  gas  and  water  necessary  for  their  proper  use  ;  the  rates 
to  be  paid  therefor  must  not  be  fixed  for  a  term  exceeding  five 
years,  and  the  city  authorities  must  reserve  the  right  to  abrogate 
such  contract  whenever  gas  or  water  is  offered  to  be  supplied 
at  two  thirds  of  such  fixed  contract  price. 

Enacted  March  12.  1S72. 

Restrictions  and   conditions  to   be   imposed. 

§4413.  In  granting  autliorily  (o  lay  down  pipes,  and  in  con- 
tracting for  gas  and  water,  the  common  council  must  impose 
such  restrictions  and  conditions,  and  provide  for  such  locations 
and  construction  of  gas  and  water  works  and  pipes  as  to  work 
the  least  possil)le  public  or  private  inconvenience,  anil  provide 
for  enforcing  such  restrictions  and  conditions. 

Enacted  March  12,  1872. 
2  Cal.  App.  722. 


§  10  CODE    OF    Civil.    PROCRDTIRE.  377 


CODE  OF  CIVIL  PROCEDURE. 


PORTIONS  RELATING  TO  PRIVATE  CORPORATIONS. 


Preliminary    Pf-ovisions. 
Sec.  10.     Holidays. 
1 1 .     Same. 
17.      Certain  term.s  used  in  tliis  code  defined. 

Koiidays. 

§  10.  Holidays,  within  the  nieanini;  of  this  code,  are  every 
Sunday,  the  first  day  of  January,  the  twenty-second  day  oi 
February,  the  thirtieth  day  of  May,  the  fourtli  day  of  July, 
the  ninth  day  of  September,  the  first  Monday  in  September, 
the  twelfth  day  of  October,  to  be  known  as  "Discovery  Day," 
the  twenty-fifth  day  of  December,  every  day  on  which  an  elec- 
tion is  held  throughout  the  state,  and  every  day  appointed  by  the 
president  of  the  United  States  or  by  the  governor  of  this  state 
for  a  public  fast,  thanksgiving  or  holiday.  If  the  first  day  of 
January,  the  twenty-second  day  of  February,  the  thirtieth  day 
of  May,  the  fourth  day  of  July,  the  ninth  day  of  September,  the 
twelfth  day  of  October  or  the  twenty-fifth  day  of  December  fall 
upon  a  Sunday,  the  Monday  following  is  a  holiday.  Every 
Saturday  from  twelve  o'clock  noon  until  twelve  o'clock  mid- 
night is  a  holiday  as  regards  the  transaction  of  business  in  the 
public  offices  of  this  state,  and  also  in  political  divisions  thereof 
where  laws,  ordinances  or  charters  provide  that  public  offices 
may  be  closed  on  holidays ;  provided,  this  shall  not  be  construed 
to  prevent  or  invalidate  the  issuance,  filing,  service,  execution  or 
recording  of  any  legal  process  or  written  instrument  whatever 
on  such  Saturday  afternoons. 

Amended  February  19,  1909;  stats.  1909,  p.  22;  in  effect  in 
sixty  days. 

152  Cal.   r.3I;   1.53  Cal.   .199;    VIII   Cal.   App.    Dec.  <)()2, 
G63. 

Similar  provisions:  Civ.  C.  §  7;  Pol.  C.  §  10. 


378  CODE    OF    CIVIL    PROCEDURE.  Ol 

Same. 

§  11.  If  the  first  day  of  January,  the  twenty-.secoud  day  of 
February,  the  thirtieth  day  of  May,  the  fourth  day  of  July,  the 
ninth  day  of  September,  the  twelfth  day  of  October  or  the 
twenty-fifth  day  of  December  fall  upon  a  Sunday,  the  Monday 
following  is  a  holiday. 

Amended  Feliruary  li».  I'.IO!)  ;  sinls.  liXC.t,  p.  Ii2 ;  in  ('It'ect  in 
sixty  days. 

Certain  terms  used   in  this  code   defined. 

§  17.  Words  used  in  this  code  in  Die  inosent  tense  include  the 
future  as  well  as  the  prcsiMil  :  words  used  in  the  masculine 
sender  include  the  feminine  and  neuter ;  the  .singular  number 
includes  the  plural,  and  the  plural  the  singular ;  the  word  "per- 
son" includes  a  corporation  as  well  as  a  natural  person:  the 
word  "county"  includes  "city  and  county;"  writing  includes 
printing  and  typewriting ;  oath  includes  affirmation  or  declara- 
tion ;  and  every  mode  of  oral  statement,  under  oath  or  affirma- 
tion, is  embraced  by  the  term  "testify,"  and  every  written  one 
in  the  term  "depose"  ;  signature  or  subscription  includes  mark, 
when  the  per.son  can  not  write,  his  name  being  written  near  it 
l)y  a  person  who  writes  his  own  name  as  a  witness ;  provided, 
that  when  a  signature  is  by  mark  it  must,  in  order  that  the 
same  may  be  acknowledged  or  may  serve  as  the  signature  to 
any  sworn  statement,  be  witnessed  by  two  persons  who  must 
subscribe  their  own  names  as  witness  thereto. 

The  following  words  have  in  this  code  the  signification  at- 
tached to  them  in  this  section,  unless  otherwise  apparent  from 
the  context : 

1.  The  word  "property"  includes  both  real  and  personal  prop- 
erty ; 

2.  The  words  "real  property"  are  coextensive  with  lands, 
tenements,  and  hereditaments  ; 

3.  The  words  "personal  property"  include  money,  goods,  chat- 
tels, things  in  action,  and  evidences  of  debt ; 

4.  The  word  "month"  means  a  calendar  month,  unless  other- 
wise expressed  ; 

5.  The  word  "will"  includes  codicil ; 

(i.  The  word  "writ"  signifies  an  order  or  precept  in  writing, 
issued  in  the  name  of  the  people,  or  of  a  court  or  judicial  officer ; 
and  the  word  "process"  a  writ  or  summons  issued  in  the  course 
of  judicial  proceedings ; 


SIT  CODE    OF    CIVIL    PROCEDURE.  379 

7.  The  word  "state,"  when  applied  to  the  different  parts  of  the 
United  States,  includes  the  District  of  Columbia  and  the  terri- 
tories ;  and  the  words  "United  States"  may  include  the  district 
and  territories  ; 

8.  The'  word  "section"  whenever  hereinafter  employed,  refers 
(o  a  section  of  this  code,  unless  some  other  code  or  statute  is 
expressly  mentioned  ; 

!).  The  word  "afKnity"  wlien  applied  to  the  marriage  relation, 
signifies  the  connection  existing  in  consequence  of  marriage, 
between  each  of  the  married  persons  and  the  blood  relatives  of 
(he  other. 

Amended  March  13,  VMS  ;  stats.  IDO:!,  p.  134. 
152  Cal.  255. 

Similar  provisions:   Civ.  C.  §  14;  Pol.  ('.  S  17  ;  Pen.  C.  §  7. 


PART  I. 

OF  COURTS  OF  JUSTICE. 


TITLE  I. 
Organization  and  Jurisdiction. 

CHAPTER  VII. 
GENERAL  PROVISIONS   RESPECTING   COURTS  OF  JUSTICE. 

Article  III. 

Judicial    Days. 

Sec.  133.     Days  on  which  courts,  etc.,  may  he  heM. 
134.     Nonjudicial  days. 
13.^.      Appointments  on  nonjudicial  days. 

Days  on  which  courts,  etc.,  may  be    held. 

§  133.     Courts  of  justice   may  be   held   and  judicial  business 
transacted  on  any  day,  except  as  provided  in  the  next  section. 
Amended  April  1,  1880;  amendts.  1880,  p.  37. 

57  Cal.  400;  03  Cal.  421  ;  05  Cal.  021  ;  97  Cal.  892;  112 
Cal.  010 ;  152  Cal.  572 ;  158  Cal.  .598. 


380  conE  OF  CIVIL  procedure.  §  134 

Nonjudicial   days. 

§  134.  No  coiut,  other  thau  the  supreme  court,  must  be  opeu 
for  the  transaction  of  judicial  business  on  any  of  the  holidays 
mentioned  in  section  ten,  except  for  the  following  purposes : 

1.  To  give,  upon  their  request,  instructions  to  jury  when 
deliberating  on  their  verdict ; 

2.  To  receive  a  verdict  or  discharge  a  jury  ; 

3.  For  the  exercise  of  the  powers  of  a  magistiatc  in  a  criminal 
nction,  or  in  a  jiroceeding  of  a  criminal  nature. 

Injunctions  and  writs  of  inohibitioii  may  be  issued  and  served 
on  any  day. 

.Vmended  March  V.),  1907;  stats.  1907,  p.  681. 

57  Cal.   400;   03  Cal.   421;   05  Cal.   021;    112   Cal.   010; 
138  Cal.  219  ;  147  Cal.  777. 

Courts  always  open  :  See  Constitution  of  California,  an.  \l. 
§5. 

Note. — §  134.  The  amendment  recast  the  section,  substituting 
the  words  "on  any  of  the  holidays  mentioned  in  section  10," 
instead  of  attempting  to  mention  the  holidays,  which  are  always 
changing'  Tlie  amendments  are  designed  to  conform  to  tlao 
section  in  tlie  constitution.  (See  RecUciiuition  Difitrict  vs.  Ham- 
ilton, 112  Cal.  610.) 

Appointments  on  nonjudicial  days. 

§  135.  If  any  day  mentioned  in  section  ten  be  a  day  appointed 
for  the  holding  or  sitting  of  any  court,  other  than  the  supreme 
court,  it  is  deemed  adjourned  to  the  next  succeeding  judicial  day. 

Amended  March  19.  1907  ;  stats.  1907,  p.  682. 

1.52  Cal.  531,  .572;  1.53  Cal.  .598,  599,  601,  603;  VIII  Cal. 
App.  Dec.  663. 

Note. — §  135.  The  amendment  changes  the  phraseology  of  the 
section  to  conform  with  section  10  and  with  the  amendments 
made  to  section  134. 

Ed.  Note. — §  135.  Tliis  section  was  again  amended  at  the 
extra  session  of  1907,  on  November  23d  (stats.  1909,  p.  9,  which 
volume  includes  statutes  of  extra  sessions  of  1907),  but  the 
amendment  was  held  by  the  supreme  court  to  be  unconstitutional 
and  void.  {Diepenhrock  vs.  Superior  Court  of  Sacramento,  153 
Cal.  597.)      See,  also,  VIII  Cal.  App.  Dec.  838. 

Restriction    of   judicial    business    on    special    holidays.      LUncon- 

stitutional.] 

§  135.     On  all  special   holidays   the  courts  of  this  state  shall 

be  open   for  the   transaction   of  any   and   all   judicial   business, 

except  the   trial  of  an   action  or  the   rendition   of  a  judgment 


§  135  CODE    OF    CIVIL   PROCEDURE.  .  381 

based  upou  a  contract,  expressed  or  implied,  for  the  direct  pay- 
ment of  money.  Provided,  if  any  day  mentioned  in  .section  10 
of  tliis  code  otiier  than  a  special  holiday  happen  to  be  the  day 
appointed  for  the  holding  or  sitting  of  a  court,  or  to  which  it 
is  adjourned,  it  shall  be  deemed  appointed  for  or  adjourned  to 
the  next  day. 

Ed.  Note. — §  13.5.  As  aniriidrd  November  .?•!,  l!)in  ;  .'^tats.  1907, 
p.  9  (which  volume  includes  statutes  of  extra  sessions  of  1907). 
Unconstitiitional.  See  editorial  note  to  section  13.5.  ante,  as 
amended  at  the  regular  session  of  1907. 


PART  II. 

OF  CIVIL  ACTIONS. 


TITLE  II. 


Of  the  Time  of  Commencing  Civil  Actions. 

CIIAPTEK   III. 

THE    TIME    OF    COMMENCING   ACTIONS   OTHER    THAN    FOR 
THE    RECOVERY  OF   REAL  PROPERTY. 

Skc.  311.     Within  six  months. 

318.      No  limitations  wliere  monej'  deposited  in  haul';. 

Within   six  months. 

S341.     Within  six  months: 

An  action  against  an  officer,  or  officer  de  faet(j : 
1.  To  recover  any  goods,  wares,  merchandise,  or  other  prop- 
erty, seized  by  any  such  officer  in  his  official  capacity  as  tax 
collector,  or  to  recover  the  price  or  value  of  any  goods,  wares, 
merchandise,  or  other  personal  property  so  seized,  or  for  dam- 
ages for  the  seizure,  detention,  sale  of,  or  injury  to  any  goods, 
wares,  merchandise,  or  other  ])ersonal  property  seized,  or  for 
damages  done  to  ;niy  person  or  propei-tA  in  M)nl<iii--  -auv  sueh 
.seizure  ; 


382  CODE    OF    CIVIL    PROCEDURE.  §  341 

2.  To  recover  stock  sold  for  a  deliuquent  assessment,  as  pro- 
vided in  section  347  of  the  Civil  Code. 

Amended  March  24,  ]S74;  amendts.  1S73-4.  p.  2!)2. 

117  Cal.  504  ;  130  Cal.  498 ;  133  Cal.  06. 
Stock  sold  for  assessment :  Civ.  C.  §  347. 

No  limitations  where  money  deposited  in  bank. 

S  348.  To  actions  brought  to  recover  money  or  other  prop- 
erty deposited  with  any  bank,  banker,  trust  company,  or  savings 
and  loan  society,  there  is  no  limitation. 

Enacted  March  24.  1874  ;  amendts.  1873-4.  p.  2!»3. 

(>4  Cal.  122;  65  Cal.  72;  73  Cal.  611  :  125  Val  412;  127 
Cal.  (;74:  153  Cal.  243:  1  Cal.  .\pp.  72(1. 


CHAPTER   IV. 

GENERAL  PROVISIONS  AS  TO  THE  TIME  OF  COMMENCING 
ACTIONS. 

Sec.  359.     This  title   not   applicable   to   actions   against   directors, 
etc.      Limitations  in  such  cases  prescribed. 

This  title  not  applicable  to  actions  against  directors,  etc.— Lim- 
itations in  such  cases  prescribed. 
S  359.     Tills  title  does  not   affect  actions  agdinst  directors  or 
stockholders  of  a  corporation,  to  recover  a  penalty  or  forfeiture 
imposed,    or    to   enforce   a    liability   created   by   law;    but   such 
actions  must  be  brought  within  three  years  after  the  discovery 
by  the  aggrieved  party  of  the  facts  ui)on  which   tlir  penalty  or 
forfeiture  attached,  or  the  liability  w;is  created. 
Enacted  March  11,  1872. 

59  Cal.  540;  74  Cal.  171;  82  Cal.  (SJ  :  97  Cal.  97;  99 
Cal.  613;  103  Cal.  596;  108  Cal.  5;  117  Cal.  163;  124 
Cal.  94;  125  Cal.  8,  409,  454,  488;  127  Cal.  167,  259, 
527,  671 ;  142  Cal.  384 ;  143  Cal.  224 ;  145  Cal.  703 ;  147 
Cal.  558;  6  Cal.  App.  472;  7  Cal.  App.  610,  611. 
Personal  liability  of  directors:  See  Civ.  C.  §309;  Constitu- 
tion of  California,  art.  XTT,  $3. 


§  895  CODE    OF    CIVIL    PKOCEDURE.  383 

TITLE  IV. 
Of  the  Place  of  Trial  of  Civil  Actions. 

.Sec.  3!).5.     Other  actions  according  to  the  residence  of  the  pai-tics. 

Other  actions  according  to  the  residence  of  the  parties. 

§  395.  In  all  other  cases,  the  action  must  be  tried  in  the 
county  in  which  the  defendants,  or  some  of  them,  reside  at  the 
commencement  of  the  action.  If  none  of  the  defendants  reside 
in  tlie  state,  or,  if  residing  in  the  state,  and  the  county  in  which 
they  reside  is  unknown  to  the  plaintiff,  the  same  may  be  tried 
in  any  county  which  the  plaintiff  may  designate  in  liis  com- 
plaint, and  if  the  defendant  is  about  to  depart  from  the  state, 
such  action  may  be  tried  in  any  county  where  either  of  the 
parties  reside,  or  service  is  had,  subject,  however,  to  the  power 
of  the  court  to  change  the  place  of  trial,  as  provided  in  this 
code.  If  any  person  is  improperly  joined  as  a  defendant,  or 
has  been  made  a  defendant  solely  for  the  purpose  of  having  the 
action  tried  in  the  county  where  he  resides,  his  residence  must 
not  be  considered  in  determining  which  is  the  proper  county  for 
tlie  trial  of  the  action. 

Amended  March  V.),  1907:  stats.  1!)07.  p.  700. 

tjl  Cal.  78;  «2  Cal.  319;  05  Cal.  394.  002;  69  Cal.  154 
71  Cal.  489;  77  Cal.  132,  449;  80  Cal.  503;  83  Cal.  497 
88  Cal.  575  ;  92  Cal.  200 ;  97  Cal.  1.39,  643  ;  100  Cal.  15 
101  Cal.  460;  102  Cal.  48,  336;  105  Cal.  141;  106  Cal 
58;  111  Cal.  376;  113  Cal.  609:  115  Cal.  2.50;  119  Cal 
79;  133  Cal.  60,  .507:  135  Cal.  1.55,  574;  136  Cal.  136 
138  Cal.  580 :  139  Cal.  715 ;  140  Cal.  472 ;  144  Cal.  774 
148  Cal.  59,  61;   150  Cal.  468;   151  Cal.   1.59;   1.53  Cal 
420 ;  3  Cal.  App.  603  ;  4  Cal.  App.  370 ;  6  Cal.  App.  433  ; 
7  Cal.  App.  189. 
Note. — §  395.     The    last    sentence    of    this    section    has    been 
added,   and   the   amendment   thereby   made   is   intended   to   reach 
cases  where  a  person  has  been  made  a  defendant  solely  for  the 
purpose    of    having    an    action    tried    in    the    county    wherein    he 
resides,  thus  taking- away  from  the  defendant  properly  joined  and 
from  tlie  real  defendants  the  rights  of  change  of  venue  intended 
to  he  vouclisHff'd  tf>  them  in  otlier  sections  of  th^  codf. 


oSl  CODE    OF    CIVIL    PKOCEDURE.  S  411 

TITLE  V. 
Of  the  Manner  of  Commencing  Civil  Actions. 

Sec.  411.     Summons,  how  .served. 

412.  Publication  of  summons,  wlien  defendant  is  absent 
from  the  state,  concealed,  or  a  foreign  corporation 
having  no  agent,  etc. 

Summons,   how  served. 

§411.  The  summons  must  bo  .served  by  delivering  a  copy 
thoreol',  -as  follows  : 

1.  If  the  suit  is  against  a  corporation  formed  under  the  laws 
of  this  state,  to  the  president  or  other  head  of  the  corporation, 
secretary,  cashier,  or  managing  agent  thereof ; 

2.  If  the  suit  is  agaiu.st  a  foreign  corporation,  or  a  nonresi- 
dent joint  stock  company,  or  association,  doing  business  and 
having  a  managing  or  business  agent,  cashier,  or  secretary  within 
this  state,  to  such  agent,  cashier,  or  secretary  ; 

3.  If  against  a  minor  under  the  age  of  fourteen  years,  resid- 
ing within  this  state,  to  such  minor,  personally,  and  also  to  his 
father,  mother,  or  guardian ;  or,  if  there  be  none  within  this 
state,  then  to  any  person  having  the  care  or  control  of  such 
minor,  or  with  whom  he  resides,  or  in  whose  service  he  is 
employed ; 

4.  If  against  a  person  residing  within  this  state,  who  has  been 
.iudicially  declared  to  be  of  unsound  mind,  or  incapable  of  con- 
ducting his  own  affairs,  and  for  whom  a  gu;irdian  has  been 
appointed,  to  such  person  and  also  to  his  guardian  ; 

r>.   If  against  a  county,  city  or  town,  to  the  president  of  the 
board    of  supervisors,    president   of   the   council    or    trustees,    or 
otlier  head  of  the  legislative  department  thereof ; 
0.   In  all  other  cases,  to  the  defendant  personally. 
Amended  March  24,  1874 ;  ameudts.  1S73-4,  p.  29S. 

59  Cal.  473,  493;  04  Cal.  597;  (!G  Cal.  315;  79  Cal.  104; 
S7  Cal.  531;  97  Cal.  397;  120  Cal.  430;  127  Cal.  68;  128 
Cal.  332;  134  Cal;  633;  139  Cal.  177,  178:  143  Cal.  21; 
2  Cal.-App.  585,  586,  589;  3  Cal.  App.  33. 

Publication    of    summons,    when    defendant    Is    absent    from    the 
state,    concealed,    or   a    foreign    corporation    having    no   agent, 
etc. 
§412.      WlnTi'    llir    |M'i':-iii:    oil     wiidui    service    is    to    lie    made 

resides  out   of  the  stale:  or  li;is  dcicii-tril  rnnn   tiie  sl;ite:  or  can 


§  412  CODE  OF  CIVIL  PROCEDURE.  385 

not,  after  due  diligence,  be  found  witliin  the  state ;  or  conceals 
liimself  to  avoid  the  service  of  summons  :  or  is  a  foreign  corpora- 
tion having  no  managing  or  business  agent,  cashier  or  secretary 
within  the  state,  and  the  fact  appears  by  affidavit  to  the  satis- 
faction of  the  court,  or  a  judge  thereof;  and  it  also  appears  by 
such  affidavit,  or  by  the  verified  complaint  on  file,  that  a  cause 
of  action  exists  again.st  the  defendant  in  respect  to  whom  the 
service  is  to  be  made,  or  that  he  is  a  necessary  or  proper  jiarty 
to  the  action:  or  when  it  appears  by  such  affidavit,  or  hy  the 
complaint  on  file  herein,  that  it  is  an  action  which  relates  to  or 
the  subject  of  which  is  real  or  personal  property  in  this  state, 
in  which  such  person  defendant  or  foreign  corporation'  defendant 
has  or  claims  a  lien  or  interest,  actual  or  contingent,  therein,  or 
in  which  the  relief  demanded  consists  wholly  or  in  part  in  exclud- 
ing such  person  or  foreign  corporation  from  any  interest  therein, 
such  court  or  judge  may  make  an  order  that  the  service  be  made 
by  the  publication  of  the  summons ;  provided,  that  where  service 
is  sought  to  be  made  upon  a  person  who  can  not,  after  due  dili- 
gence, be  found  within  the  state  it  must  first  appear  to  the  courl 
by  the  affidavit  aforesaid  that  there  has  not  been  filed,  on  behalf 
of  such  person,  in  the  county  where  such  action  is  pending,  the 
certificate  of  residence  provided  for  by  section  one  thousand  one 
hundred  and  sixty-three  of  the  Civil  Code  in  the  county  in  which 
the  action  is  brought ;  or  that  .said  certificate  was  so  filed  and 
that  the  defendan^  can  not  1k>  found  at  the  place  named  in  said 
certificate,  which  latter  fact  must  be  made  to  appear  by  the  cer- 
tificate of  the  sheriff  of  the  county  wherein  said  defendant  claims 
residence  in  and  by  said  certificate  of  residence,  and  which  cer- 
tificate of  said  sheriff  must  show  that  service  of  said  summons 
was  attempted  upon  said  defendant  at  the  place  named  in  said 
certificate  of  residence  but  that  said  defendant  was  not  to  be 
found  thereat. 

Amended  March  IS.  1!)0r> ;  stats.  WOr,.  p.  141. 

(U  Cal.  r.l)7;  67  Cal.  19;  08  Cal.  87:  70  Cal.  433:  72  Cal. 

<;8:  73  C^al.  600:  76  Cal.  611,  647:  86  Cal.  583;  92  Cal. 

346;  99  Cal.  32.-;  101  Cal.  573;   109  Cal.  254:  115  Cal. 

277;  119  Cal.  .301;  137  Cal.  426.  (!55  ;  138  Cal.  446;  144 

Cal.  415.  787;  149  Cal.  484:  150  Cal.  310,  322;  151  Cal. 

54.  514:  XXXVI  Cal.  Dec.  248;  XXXVII  Cal.  Dec.  313. 


386  CODE    OF    CIVIL    PROCEDUKE.  §  437o 

TITLE  VI. 
Of  the  Pleadings  in  Civil  Actions. 

CHAPTER  IV. 

THE  ANSWER. 

Sec.  437a.     Actions  to  recover  insurance,  what  defendant  claiming 
exemption  must  set  up. 

Actions  to  recover  insurance,  what  defendant  claiming  exemp- 
tion  must  set  up. 

§  437a.  In  an  action  to  recover  upon  a  contract  of  insurance 
wherein  the  defendant  claims  exemption  from  liability  upon  the 
ground  that,  although  the  proximate  cause  of  the  loss  was  a  peril 
insured  against,  the  loss  was  remotely  caused  by  or  would  not 
have  occurred  but  for  a  peril  excepted  in  the  contract  of  insur- 
ance, the  defendant  shall  in  his  answer  set  forth  and  specify  the 
peril  which  was  the  proximate  cause  of  the  loss,  in  what  manner 
the  peril  excepted  contributed  to  the  loss  or  itself  caused  the 
peril  insured  against,  and  if  he  claim  that  the  peril  excepted 
caused  the  peril  insured  against,  he  shall  in  his  answer  set  forth 
and  specify  upon  what  premises  or  at  what  place  the  peril 
excepted  caused  the  peril  insured  against. 

Enacted  March  21,  1907 ;  stats.  1907,  p.  836. 

CHAPTER  VI. 

VERIFICATION   OF   PLEADINGS. 

Sec.  4-16.      Vcrificatiun  of  pleadinK-s. 

Verification  of  pleadings. 

§  446.  Every  pleading  must  be  subscribed  by  the  party  or  his 
attorney  ;  and  when  the  complaint  is  verified,  or  when  the  state, 
or  any  officer  of  the  state,  in  his  oSicial  capacity,  is  plaiutilT, 
the  answer  must  be  verified,  unless  an  admission  of  the  truth  of 
the  complaint  might  subject  the  party  to  a  criminal  prosecution, 
or,  unless  an  officer  of  the  state,  in  his  ofl[icial  capacity,  is 
defendant.  In  all  cases  of  a  verification  of  a  pleading,  the 
affidavit  of  the  party  must  state  that  the  same  is  true  of  his  own 
knowledge,  except  as  to  the  matters  which  are  herein  stated  on 
his  information  or  belief,  and  as  to  those  matters  that  he  believes 


§  446  CODE   OF   CIVIL   PROCEDURE.  387 

it  to  be  true  ;  and  where  a  pleading  is  verified,  it  must  be  by 
the  afiidavit  of  a  party,  unless  the  parties  are  absent  from  the 
county  where  the  attorney  has  his  office,  or  from  some  cause 
unable  to  verify  it,  or  the  facts  are  within  the  knowledge  of  his 
attorney  or  other  person  verifying  the  same.  When  the  plead- 
ing is  verified  by  the  attorney,  or  any  other  person  except  one  of 
the  parties,  he  must  set  forth  in  the  afiidavit  the  reasons  why  it 
is  not  made  by  one  of  the  parties.  When  a  corporation  is  a 
party,  the  verification  may  be  made  by  any  ofiicer  thereof. 
When  the  state,  or  any  county  thereof,  or  any  officer  of  the 
state,  or  of  any  county  thereof,  in  his  official  capacity  is  iilaintiff, 
the  complaint  need  not  be  verified. 

Amended  March  20,  1907 ;  stats.  1907,  p.  707. 

52  Cal.  182;  58  Cal.  40;  60  Cal.  375;  65  Cal.  337;  68 

Cal.  410 ;  72  Cal.  88 ;  78  Cal.  121 ;  80  Cal.  60 ;  83  Cal. 

562 ;  98  Cal.  33 ;  106  Cal.  579 ;  113  Cal.  171 ;  114  Cal. 

475  ;  128  Cal.  328,  584  ;  138  Cal.  158,  447  ;  147  Cal.  494. 
Note. — §  44  6.     The  words  "where  the  attorney  has  his  office" 
have  been  sifbstituted  for  the  words  "where  the  attorney  resides," 
and  the  last  sentence  has  been  added. 


TITLE  VII. 

Of  the  Provisional  Remedies  in  Civil  Actions. 

CHAPTER  III. 

INJUNCTION. 

Sec.  531.     Injunction   to   suspend  business  of  a  corporation,   how 
granted. 

Injunction   to  suspend   business  of  a  corporation,   how  granted. 

§531.  An  injunction  to  suspend  the  general  and  ordinary 
business  of  a  corporation  can  not  be  granted  without  due  notice 
of  the  application  therefor  to  the  proper  officers  or  managing 
agent  of  the  corporation,  except  when  the  people  of  this  state  are 
a  party  to  the  proceeding. 

Amended  March  16,  1907  ;  stats.  1907,  p.  342. 

05  Cal.  189;  66  Cal.  163,  ,314;   110  Cal.  145;   125  Cal. 
299. 
Note. — §  531.     The    words    "except   by    the    court    or    a    judge 
thereof ;  nor  can  it  be  granted"  are  omitted,  as  entirely  super- 
fluous. 


388  CODE  OF  CIVIL  PROCEDURE.  §  541 

CHAPTER  IV. 

ATTACHMENT. 

Sec.  541.      Shares  of  stock  and  deljts  due  defendant,  how  attached 
and  disposed  of. 
.54  2.      How  real  and  personal  property  shall  be  attached. 

Shares  of  stock  and  debts  due  defendant,   how  attached  and  dis- 
posed of. 

S  541.  The  rights  ov  shares  which  the  defendant  may  have  in 
the  .stock  of  any  corporation  or  company,  togetlier,  with  the 
interest  and  profit  thereon,  and  all  debts  due  such  defendant,  and 
all  other  property  in  this  state  of  such  defendant  not  exempt 
from  execution,  may  be  attached,  and  if  judgment  be  recovered, 
l)e  sold  to  satisfy  the  judgment  and  execution. 

Enacted  March  11,  1872. 

57  Cal.  255 ;  144  Cal.  G7. 

Stocks  or  shares,  how  attached  :  §  542,  subd.  4.   . 

Debts  and  credits,  etc..  how  attached:  §542,  subd.  5. 

Exem])tion  in  certain  cases :   Code  ( 'iv.  Proc.  §  690. 

Mutual  asse.ssmeut  contract,  exemptions :   See  Civ.  C.   §  453fr. 

Cofiperative  business  association  :   See  Civ.  C.  S  G53f. 

How  real  and  personal  property  shall  be  attached. 

§  542.  The  sheriff  to  wliom  the  Avrit  is  directed  and  delivered, 
uuist  execute  the  same  without  delay,  and  if  the  undertaking 
mentioned  in  section  tiv(>  lumdred  and  foi-ty  be  not  given,  as 
follows  : 

1.  Real  projierty,  standing  upon  tlie  records  of  the  county  in 
the  name  of  the  defendant,  must  he  attached,  by  filing  with  the 
recorder  of  the  county  a  copy  of  the  writ,  together  with  a 
descri))tion  of  the  property  attached,  and  a  notice  that  it  is 
attached;  and  by  leaving  a  similar  copy  of  the  writ,  description, 
and  notice  with  an  occupant  of  tlie  jiroperty,  if  tliere  is  one:  if 

not,    then   by   posting   tlie   sn in    ;i    consijicuous    place   on    llie 

property  attached. 

2.  Real  property,  or  an  inleresi  llierein.  hi'longing  to  liii' 
defendant,  and  held  by  any  other  pei\sou,  or  standing  on  the 
records  of  the  county  in  the  'name  of  any  other  person,  must 
be  attached,  by  filing  witli  the  recorder  of  the  county  a  copy  of 
the   writ,    together   with   a   description    of   the   property,   and   a 


§  542  CODE    OF    CIVIL    PROCEDURE.  389 

notice  that  such  real  property,  and  any  interest  of  the  defend- 
ant therein,  held  by  or  standing  in  the  name  of  such  other 
person  (naming  him),  are  attached;  and  by  leaving  with  the 
occupant,  if  any,  and  with  such  other  person,  or  his  agent,  if 
Ijnown  and  within  the  county,  or  at  the  residence  of  either,  if 
within  the  county,  a  copy  of  the  writ,  with  a  similar  descrip- 
tion and  notice.  If  there  is  no  occupant  of  the  property,  a 
copy  of  the  writ,  together  with  such  description  and  notice,  must 
be  posted  in  a  conspicuous  place  upon  the  property.  The 
recorder  must  index  such  attachment  when  filed,  in  the  names, 
both  of  the  defendant  and  of  the  person  by  whom  the  property 
is  held  or  in  whose  name  it  stands  ou  the  records. 

3.  Personal  property,  capable  of  manual  delivery,  must  be 
attached  by  taking  it  into  custody. 

4.  Stocks  or  shares,  or  interest  in  stocks  or  shares,  of  any 
corporation  or  company,  must  be  attached  by  leaving  with  the 
in-esident,  or  other  head  of  the  same,  or  the  secretary,  cashier, 
or  other  managing-  agent  thei-eof,  a  copy  of  the  writ,  and  a 
notice  stating  that  the  stock  or  interest  of  the  defendant  is 
attached,  in  pursuance  of  such  writ. 

•5.  Debts  and  credits  and  other  personal  property,  not  capable 
of  manual  delivery,  must  be  attached  by  leaving  with  the  per- 
son owing  such  debts,  or  having  in  his  possession,  or  under  his 
control,  such  credits  and  other  personal  property,  or  with  his 
agent,  a  copy  of  the  writ,  and  a  notice  that  the  debts  owing  by 
him  to  the  defendant,  or  tfie  credits  and  other  personal  property 
in  his  possession,  or  under  his  control,  belonging  to  the  defend- 
ant, are  attached  in  pursuance  of  such  writ,  except  in  the  case 
of  attachment  of  growing  crops,  a  copy  of  the  writ,  together 
with  a  description  of  the  property  attached,  and  a  notice  that 
it  is  attached,  shall  be  recorded  the  same  as  in  the  attachment 
of  real  property. 

.Vmended  March  16,  1903  ;  stats.  1003.  p.  167. 

J54  Cal.  342 ;  57  Cal.  195,  256  ;  65  Cal.  .303  ;  77  Cal.  655 ; 

90  Cal.  568;  95  Cai.  .531  ;  96  Cal.  267:  101  Cal.  227;  103 

Cal.  655 ;  111  Cal.  235,  2.38 ;  119  Cal.  198  ;  121  Gal.  351 ; 

138  Cal.  194;  146  Cal.  742;  151  Cal.  71;  1  Cal.  App. 

482 ;  VIII  Cal.  App.  Dec.  366. 
Sales  on  execution  :   See  Code  Civ.  Proc.  §  688. 


3<J0  CODE    UK    CIVIL    PKOCEDUKK.  S  WU 

CHAPTER  V. 

RECEIVERS. 

Sec.  564.     Appointment  of  receiver. 

565.     Appointment  of  receivers  upon  dissolution  of  corpora- 
tions. 

Appointment  of  receiver. 

§  564.  A  receiver  may  he  appointed  by  the  court  iu  which  an 
action  is  pending,  or  by  the  judge  thereof : 

1.  In  an  action  by  a  vendor  to  vacate  a  fraudulent  purchase 
of  property,  or  by  a  creditor  to  subject  any  property  or  fund  to 
his  claim,  or  between  partners  or  others  jointly  owning  or  inter- 
ested in  any  property  or  fund,  on  the  application  of  the  plaintiff, 
or  of  any  party  whose  right  to  or  interest  in  the  property  or 
fund,  or  the  proceeds  thereof,  is  probable,  and  where  it  is  shown 
that  the  property  or  fund  is  in  danger  of  being  lost,  removed,  or 
materially  injured  ; 

2.  In  an  action  by  a  mortgagee  for  the  foreclosure  of  his 
mortgage  and  sale  of  the  mortgaged  property,  where  it  appears 
that  the  mortgaged  property  is  in  danger  of  being  lost,  removed, 
or  materially  injured,  or  that  the  condition  of  the  mortgage  has 
not  been  performed,  and  that  the  property  is  probably  insuffi- 
cient to  discharge  the  mortgage  debt ; 

3.  After  judgment,  to  carry  the  ju%ment  into  effect ; 

4.  After  judgment,  to  dispose  of  the  property  according  to  the 
judgment,  or  to  preserve  it  during  the  pendency  of  an  appeal, 
or  in  proceedings  in  aid  of  execution,  when  an  execution  has 
been  returned  unsatisfied,  or  when  the  judgment  debtor  refuses 
to  apply  his  property  in  satisfaction  of  the  judgment ; 

5.  In  the  cases  when  a  corporation  has  been  dissolved,  or  is 
insolvent,  or  in  imminent  danger  of  insolvency,  or  has  forfeited 
its  corporate  rights ; 

6.  In  all  other  cases  where  receivers  have  heretofore  been 
appointed  by  the  usages  of  courts  of  equity. 

Enacted  March  11,  1872. 

53  Cal.  551 ;  54  Cal.  287  ;  55  Cal.  456 ;  .56  Cal.  29,  627 
57  Cal.  522,  624  ;  60  Cal.  227 ;  65  Cal.  483  ;  66  Cal.  615 
72  Cal.  .573;  75  Cal.  .322;  78  Cal.  3.58;  84  Cal.  355 
85  Cal.  36 ;  95  Cal.  276 ;  98  Cal.  495 ;  99  Cal.  410 ;  108 


§  fin4  CODE   OF   CTVIL   PROCEDUltE.  391 

Cal.  435:   110  Cal.  140.  144;  115  Cal.  94.  274:    120  Cal. 
618;  121  Cal.  41,  544;  123  Cal.  235;  138  Cal.  238;  152 
Cal.  748 ;  5  Cal.  App.'  101. 
Receiver  on   dissolution   of   coopfrative   busines.^;   association  : 
See  Civ.  C.  §  653;. 

Appointment  of  receivers   upon   dissolution   of  corporations. 

§  565.  Upon  the  dissolution  of  any  corporation,  the  superior 
court  of  the  county  in  which  the  corporation  carries  on  its 
husine.ss,  or  has  its  principal  place  of  business,  on  application 
of  any  creditor  of  the  corporation,  or  of  any  stockholder  or 
member  thereof,  may  appoint  one  or  more  persons  to  be  receivers 
or  trustees  of  the  corporation,  to  take  charge  of  the  estate  and 
effects  thereof,  and  to  collect  the  debts  and  property  duo  and 
belonging  to  the  corporation,  and  to  pay  the  outstanding  debts 
thereof,  aud  to  divide  the  moneys  and  other  property  that  shall 
remain  over,  among  the  stockholders  or  members. 

Amended  March  9.  1880 ;  amendts.  1880,  p.  4. 

84  Cal.  366:  100  Cal.  319;  101   Cal.  148:  lOS  Cal.    i.T. : 
129  Cal.  631. 

Involuntary  dissolution  :   See  Civ.  C.  §  400. 

Voluntary  dissolution  :  Code  Civ.  Proc.  §  1227  ct  scq. 


TITLE  IX. 

Of  the  Execution  of  the  Judgment  in  Civil  Actions. 

CHAPTER  I. 

THE    EXECUTION. 

Sec.  688.     What  shall  be  liable  to  be  seized  in  execution.     Not  to 
be  affected  till  a  levy  is  made. 
690.     What  exempt  from  execution. 

What  shall  be  liable  to  be  seized  in  execution — Not  to  be  affected 
till  a  levy  is  made. 
§  688.  All  goods,  chattels,  moneys,  and  other  property,  both 
real  and  personal,  or  any  interest  therein,  of  the  judgment 
debtor,  not  exempt  by  law,  and  all  property  and  rights  of  prop- 
erty seized  and  held  under  attachment  in  the  action,  are  liable 
lo  execution.      Shares  aud  interests  in  auy  corporation  or  com- 


592  CODE  OF  civrr.  procedure.  §  688 

pauy,  aud  debts  and  ci-edits.  and  all  other  property,  both  real 
and  personal,  or  any  Interest  in  either  real  or  personal  property, 
and  all  other  property  not  capable  of  manual  delivery,  may  be 
levied  upon  or  released  from  levy  in  like  manner  as  like  prop- 
erty may  be  attached  or  released  from  attachment.  Gold  dust 
must  be  returned  by  the  officer  as  so  [much]  money  collected  at 
its  current  value,  without  exposing  the  same  to  sale.  TTntil  a 
levy,  property  is  not  affected  by  the  execution. 
Amended  March  19.  1907  ;  stats.  1907,  p.  683. 

52  Cal.  aSl ;  54  Cal.  342  ;  57  Cal.  522 :  58  Cal.  375  :  65 

Cal.  302 :  72  Cal.  70 ;  77  Cal.  655 ;  94  Cal.  221 ;  99  Cal. 

165 ;  100  Cal.  327 ;  101  Cal.  227 ;  118  Cal.  101 ;  119  Cal. 

194 ;  122  Cal.  97 :  131  Cal.  89 ;  133  Cal.  317 ;  138  Cal. 

194:  146  Cal.  742:  XXXVII  Cal.  Dec.  210,  211. 
Note. — §  688.     The    amendment    consi.sts    in    substituting    the 
words   "levied  upon   or  released"   for  the  word   "attached,"   thus 
providing  a  mode  of  releasing  a  levy  of  execution.     It  adopts  the 
method  proposed  for  the  release  of  attachments  by  section  560. 

Property  exempt  from  execution :   See  §  690. 
Cooperative  business  associations  :   See  Civ.  C.  §  653f. 
Levy  :   See  Code  Civ.  Proc.  §  542. 
Sale  of  franchises  under  execution:   See  Civ.  C.  §§388-393. 

What   exempt  from   execution. 

S  690.     The  following  property  is  exempt  from  execution   or 
attachment,  except  as  herein  otherwise  specially  provided : 
********** 

11.  The  shares  held  by  a  member  of  a  homestead  association 
duly  incorporated,  not  exceeding  in  value  one  thousand  dollars 
if  the  person  holding  the  shares  is  not  the  owner  of  a  home- 
stead under  the  laws  of  this  state ; 

*********** 

18.  All  moneys,  benefits,  privileges,  or  immunities  accruing 
or  in  any  manner  growing  out  of  any  life  insurance,  if  the 
annual  premiums  paid  do  not  exceed  five  hundred  dollars,  and 
if  they  exceed  that  sum  a  like  exemption  .shall  exist  which  shall 
bear  the  same  proportion  to  the  moneys,  benefits,  privileges,  and 
immunities  so  accruing  or  growing  out  of  such  insurance  that 
said  five  hundred  dollars  bears  to  the  whole  annual  premiums 
paid ; 


§  690  CODE   OF   CIVIL   PROCEDURE.  393 

19.  Shares  of  stock  in  any  building  and  loan  as.sociation  to 
the  value  of  one  thousand  dollars ; 

:i!  ********* 

No  article,  however,  or  species  of  property  mentioned  in  this 
section  is  exempt  from  execution  issued  upon  a  judgment  recov- 
ered for  its  price,  or  upon  a  judgment  of  foreclosure  of  a  mort- 
gage or  other  lien  thereon. 

Amended  March  22.  1907  ;  stats.  1907,  p.  882. 

62  Cal.  400,  106  ;  64  Cal.  291 ;  72  Cal.  244  ;  77  Cal.  195, 

404;  90  Cal.  546;  99  Cal.  203;  102  Cal.  536;  122  Cal. 

439;   145  Cal.   778;   2  Cal.   App.  232,  487,  490;   3  Cal. 

App.  655. 

Building  and  loan  corporatiou,  exemption  :   See  Civ.  C.  §  643. 

Contract,    mutual    assessiuent,    exemption    of    moneys :   See 

Civ.  C.  §  453/i-. 


TITLE  X. 
Actions  in  Particular  Cases. 

CHAPTER  V. 

ACTIONS  FOR  THE  USURPATION  OF  AN  OFFICE  OR 
FRANCHISE. 

Sec.  803.     Action   may   be   brought   against   party   usurping,    etc.; 

nnv  nffine^  nv  franfhise. 


any  office  or  franchise 


Action  may  be  iDrought  against  party  usurping,  etc.,  any  office 
or  franchise. 
S  803.  Au  action  may  be  brought  by  the  attorney  geucral, 
iu  the  name  of  the  people  of  this  state,  upon  his  own  informa- 
tion, or  upon  a  complaint  of  a  private  party,  against  any  person 
who  usurps,  intrudes  into,  or  unlawfully  holds  or  exercises  any 
public  ofBce,  civil  or  military,  or  any  franchise,  or  against  any 
corporation,  either  de  jure  or  de  facto,  which  usurps,  intrudes 
into,  or  unlawfully  holds  or  exercises  any  franchise,  within  this 
state.  And  the  attorney  general  must  bring  the  action,  when- 
ever he  has  reason  to  believe  that  any  sucli  office  or  franchise 


394  CODE   OF   CIVIL   PKOCEDURE.  §  803 

has  been  usurped,  intruded  into,  or  unlawfully  held  or  exercised 
by  any  person,  or  when  he  is  directed  to  do  so  by  the  governor. 
Amended  March  19,  1907  ;  stats.  1907,  p.  GOO. 

04  Cal.  321 ;  55  Cal.  GIG  ;  6G  Cal.  288 ;  69  Cal.  4G3  ;  73 
Cal.  491 ;  76  Cal.  437  :  77  Cal.  372 ;  82  Cal.  243 ;  84  Cal. 
120,  376 ;  96  Cal.  606 ;  100  Cal.  541 ;  101  Cal.  148 ;  114 
Cal.  474 ;  115  Cal.  284 ;  116  Cal.  100  ;  117  Cal.  614 ;  123 
Cal.  146 ;  125  Cal.  529 ;  127  Cal.  349,  571 ;  128  Cal.  259 ; 
129  Cal.  546 ;  132  Cal.  190 ;  145  Cal.  760 ;  151  Cal.  172. 
452,  453,  454 ;  XXXVII  Cal.  Dec.  340 ;  3  Cal.  App.  679 ; 

5  Cal.  App.  492. 

Note. — §  803.  The  amendment  suggested  by  the  commissioner 
simply  added  to  the  original  section  as  it  was  enacted  March  11, 
1872,  the  following  sentence:  "And  if  it  is  claimed  that  a  cor- 
poration, either  de  jure  or  de  facto,  is  exercising  a  franchise 
which  it  is  not  authorized  to  exercise,  or  is  exercising  corporate 
functions  when  not  authorized  to  do  so,  such  corporation  must  be 
made  a  party  defendant."  This  was  struck  out  on  the  floor  of 
the  senate  January  31,  1907,  and  the  following  inserted  after  the 
word  "franchise,"  where  it  first  appears :  "or  against  any  cor- 
poration, either  de  jure  or  dc  facto,  which  usurps,  intrudes  into, 
or  unlawfully  holds  or  exercises  any  franchise." 

Cooperative  business  association.  Attorney  general  may  in- 
vestigate :   See  Civ.  C.  §  653/f. 

Franchise  :   See  Civ.  C.  §  358. 

Dissolution  of  corporation  :   See  Civ.  C.  §  400. 

Investment  companies :   See  Pol.  C.  §  653i. 

Non-profit  cooperative  corporation,  suit  by  attorney  general : 
See  Civ.  C.  §  653.c. 

TITLE  XIV. 
Of  Miscellaneous  Provisions. 

CIIAT'TER  \\. 

OF  COSTS. 

>Skc.  I03f;.     When  plaintiff  is  a  non-resident  or  a  foreign  corpora- 
tion, defendant  may  require  security  for  costs. 
1037.     If  such  security  is  not  given,  the  action  may  bo  di.s- 
missed. 
When     plaintiff     is     a     non-resident     or     a     foreign     corporation, 
defendant  tnay  require  s  curity  for  costs. 
§  1036.     Wlipn  the  plaintiff  in  an  artion  or  special  proceeding 
resides  out  of  the  state,  or  is  a  foreign  corporation,  security  for 


§  1030  CODE    OF    CIVIL    PROCEDURE.  3!J5 

the  costs  and  charges,  which  may  be  awarded  against  such 
plaintiif,  may  be  required  by  the  defendant.  When  required,  all 
proceedings  in  the  action  or  special  proceeding  must  be  stayed 
until  an  undertaking,  executed  by  two  or  more  persons,  is  filed 
with  the  clerk,  to  the  effect  that  they  will  pay  such  costs  and 
charges  as  may  be  awarded  against  the  plaintiff  by  judgment, 
or  in  the  progress  of  the  action  or  special  proceeding,  not  exceed- 
ing the  sum  of  three  hundred  dollars.  A  new  or  an  additional- 
undertaking  may  be  ordered  by  the  court  or  judge,  upon  proof 
that  the  original  undertaking  is  insufficient  security,  and  pro- 
ceedings in  the  action  or  special  proceeding  stayed  until  such 
new  or  additional  undertaking  is  executed  and  filed. 
Amended  March  18,  1903 ;  stats.  1903,  p.  1S7. 

56  Cal.  251;  G2  Cal.  42;  93  Cal.  509;  118  Cal.  660;  137 

Cal.  449  ;  149  Cal.  490,  492,  493. 

Qualification  of  sureties:   See  Code  Civ.  Proc.   §  1057. 
If  such  security  is  not  given,  the  action  may  be  dismissed. 

§  1037.  After  the  lapse  of  thirty  days  from  the  service  of 
notice  that  security  is  required,  or  of  an  order  for  new  or  addi- 
tional security,  upon  proof  thereof,  and  that  no  undertaking  as 
requir'^d  has  been  filed,  the  court  or  judge  may  order  the  ad  ion 
or  special  proceeding  to  be  dismissed. 

Amended  March  18,  1903;  stats.  1903,  p.  188. 

93  Cal.  509  ;  118  Cal.  661  ;  137  Cal.  449  ;   149  Cal.  490, 
492  :  152  Cal.  348. 


CFIAPTEK   VII. 

GENERAL   PROVISIONS. 

Sec.  1056.      Corporations    may    beconii'    .sureties    on    undertakings 
and  bonds. 
1057.      Undertakings  or  bonds,  recnnsites  of. 

Corporations  may  become  sureties  on   undertakings  and   bonds. 

§  1056.  In  all  cases  where  an  undertaking  or  bond,  with  any 
number  of  sureties,  is  authorized  or  required  by  any  provision 
of  this  code,  or  of  any  law  of  this  state,  any  corporation  wi(;h 
a  paid-up  capital  of  not  less  than  one  hundred  thousand  dol- 
lars, incorporated  under  the  laws  of  this  or  any  other  state 
of   the   United   States   for   Ihe   pur[)ose   of   making,  guaranteeing. 


396  CODE  OF  CIVIL  PROCEDURE.  §  1050 

or  becoming  a  surety  upon  bonds  or  undertakings  required  or 
authorized  by  law,  or  which,  by  the  laws  of  the  state  where  it 
was  originally  incorporated  has  such  power,  and  which  shall 
have  complied  with  all  the  requirements  of  the  law  of  this  state 
regulating  the  formation  or  admission  of  these  corporations  to 
transact  such  business  in  this  state,  may  become  and  shall  be 
accepted  as  security  or  as  sole  and  sufficient  surety  upon  such 
undertaking  or  bond,  and  such  corporate  surety  shall  be  subject 
to  all  the  liabilities  and  entitled  to  all  the  rights  of  natural 
persons  sureties  ;  prorided,  that  the  insurance  commissioner  shall 
have  the  same  jurisdiction  and  powers  to  examine  the  affairs 
of  such  corporations  as  he  has  in  other  cases;  shall  require  them 
to  file  similar  statements  and  issue  to  them  a  similar  certificate. 
And  whenever  the  liabilities  of  any  such  corporation  shall 
exceed  its  assets,  the  insurance  commissioner  shall  require  the 
deficiency  to  be  paid  up  in  sixty  days,  and  if  it  is  not  so  paid 
up,  then  he  shall  issue  a  certificate  showing  the  extent  of  such 
deficiency,  and  he  shall  publish  the  same  once  a  week  for  three 
weeks,  in  a  daily  San  Francisco  paper.  And,  until  such  defi- 
ciency is  paid  up.  such  company  shall  not  do  business  in  this  state. 
In  estimating  the  condition  of  any  such  company,  the  commis- 
sioner shall  allow  as  assets  only  such  as  are  allowed  under  exist- 
ing laws  at  the  time,  and  shall  charge  as  liabilities,  in  addition 
of  eighty  per  cent  of  the  capital  stock,  all  outstanding  indebted- 
ness of  the  company,  and  a  premium  reserve  eciual  to  fifty  per 
centum  of  the  premiums  charged  l>y  said  companj^  on  all  risks 
then  in  force. 

Enacted  March  16,  1889  ;  stats.  1889,  p.  21.5. 
95  Cal.  599 ;  97  Cal.  355. 

For  in.surance  commissioner  :   See  Pol.  C  §  588  ct  sfq. 

See  act  of  1885,  under  heading  "Bonds,"  Appendix,  entitled 
"An  act  to  facilitate  the  giving  of  bonds  required  by  law." 

Undertakings  or  bonds,   requisites  of. 

§  1057.  In  any  case  where  an  undertaking  or  bond  is  author- 
ized or  required  by  any  law  of  this  state,  the  officer  taking  the 
same  must,  except  in  the  case  of  such  a  corporation  as  is  men- 
tioned in  the  next  preceding  section,  require  the  sureties  to 
accompany  it  with  an  affidavit  that  they  are  each  residents  and 
householders,  or  freeholders,  within  the  state,  and  are  each  worth 
the   sum  .siiccified   in   the   undi'rtaking  or  bond,   over  and  above 


§  1057  CODE   OF   CIVIL   PROCBDUBE.  397 

all  their  just  debts  and  liabilities,  exclusive  of  property  exempt 
from  execution ;  but  when  the  amount  specified  in  the  under- 
taking or  bond  exceeds  three  thousand  dollars,  and  there  are 
more  than  two  sureties  thereon,  they  may  state  in  their  affidavits 
that  they  are  severally  worth  amounts  less  than  the  amount 
specified  in  the  undertaking  or  bond,  if  the  whole  amount  is 
equivalent  to  that  of  two  sufficient  sureties.  Any  corporation 
such  as  is  mentioned  in  the  next  preceding  section,  may  become 
sole  surety  on  such  bond.  No  such  corporation  must  be  accepted 
in  any  case  as  a  surety  wheu  its  liabilities  exceed  its  assets  as 
ascertained  in  the  manner  provided  in  section  ten  hundred  and 
fifty-six.  Whenever  an  undertaking  has  been  given  and  approved 
in  any  action  or  proceeding,  and  it  is  thereafter  made  to  appear 
to  the  satisfaction  of  the  court  that  any  surety  upon  such  under- 
taking has  for  any  reason  become  insufficient,  the  court  may, 
upon  notice,  order  the  giving  of  a  new  undertaking,  with  suffi- 
cient sureties,  in  lieu  of  such  in.sufficient  undertaking.  In  case 
such  new  undertaking  so  required  shall  not  be  given  within  the 
time  required  by  such  order,  or  in  case  the  sureties  thereon  fail 
to  justify  thereon  when  required,  all  rights  obtained  by  the  filing 
of  such  original  undertaking  shall  immediately  cease. 
Amended  March  15,  1907 ;  stats.  1907,  p.  308. 

52  Cal.  448  ;  97  Cal.  355 ;  106  Cal.  46 ;  122  Cal.  208 ;  128 

Cal.  669. 
Note.- — §  1057.  The  change  consists  in  the  addition  of  the  last 
two  sentences,  and  authorizes  the  court  to  exact  a  new  under- 
taking in  any  case  in  which  it  is  sliown  that  any  surety  on  a 
bond  has  become  insufficient,  thus  avoiding  all  possible  doubt  of 
the  court's  power  in  the  premises. 


398  COIJE   OF    CIVIL   PROCEDUKE.  §  1227 

PART  III. 

OF  SPECIAL  PROCEEDINGS  OF  A  CIVIL  NATURE. 


TITLE  VI. 
Of  the  Voluntary  Dissolution  of  Corporations. 

Sec.  1227.  How  dissolved. 

1228.  Application,  what  to  contain. 

1229.  Application,  how  signed  and  verified. 

1230.  Filing  application  and  publication  of  notice. 

1231.  Objections  may  be  filed. 

1232.  Hearing  of  application. 

1233.  Judgment  roll  and  appeals. 

1234.  Application  by  savings  and  loan  society. 

How  dissolved. 

S?  1227.  A  corporation  may  be  dissolved  by  the  superior  court 
of  tlie  county  where  its  principal  place  of  business  is  situated, 
upon  its  vohintary  application  for  that  purpose. 

Amended  April  16,  1880;  amendts.  1880,  p.  109. 
81  Cal.  386 ;  84  Cal.  365 ;  150  Cal.  577,  578. 

A^'oluntary  dissolution,  receiver:  See  Code  Civ.  Proc.  §§564, 
565. 

Application,  what  to  contain. 

§  1228.  The  application  must  \h>  in  wilting,  and  must  set 
forth  : 

1.  That  at  a  meeting  of  the  stockholders  or  members  called 
for  that  purpose,  the  dissolution  of  the  corporation  was  resolved 
upon  by  a  vote  of  two  thirds  of  the  members  or  of  the  holders 
of  two  thirds  of  the  subscribed  capital  stock  ; 

2.  That  all  claims  and  denumds  aujiinst  the  corporation  ha\e 
been  satisfied  and  discharged. 

Amended  March  16,  1907:  slnls.   IlidT,  p.  318. 
150  Cal.  579. 

Note. — 8  1228.  The  amendment  is  in  subdi\'ision  1  and  sub- 
stitutes the  words  "vote  of  two  thirds  of  the  members  or  of  the 
holders  of  two  thirds  of  the  subscribed  capital  stock,"  for  the 
ambiguous  words  in  the  former  statute,  the  words  in  tlie  quota- 
tion marks  being  what  was  really  intended  by  the  legislature. 


§  1229  CODE    OF    CIVIL    PROCEDURE.  399 

Application,  how  signed  and  verified. 

§  1229.  The  application  must  be  signed  by  a  majority  of  the 
board  of  trustees,  directors,  or  other  officers  having  the  manage- 
ment of  the  affairs  of  the  corporation,  and  must  be  verified  in  the 
same  manner  as  a  complaint  in  a  civil  action. 

Enacted  March  11.  1872. 
47  Cal.  133. 

Filing  application  and  publication  of  notice. 

S  1230.  I'pon  the  filing  of  the  application,  the  clerli  must  give 
notice  of  the  same  for  such  time  as  the  court  may  order,  but  not 
li-ss  than  thirty  nor  more  than  fifty  days,  by  publication  in  some 
lu'w.spaper  ])ublished  in  the  county  ;  or  if  there  be  no  newspaper 
imblished  therein,  then  by  notices  posted  in  three  of  the  prin- 
cipal public  places  in  the  county. 

Amended  March  16,  1907 ;  stats.  1907,  p.  318. 

Note. — §  1230.  To  provided  for  the  notice  to  be  given,  and  by 
whom,  in  proceedings  for  the  voluntary  dissolution  of  corpora- 
tion.g. 

Objections  may  be  filed. 

S  1231.  At  any  time  before  tlie  expiration  of  the  time  of  pub- 
lication, any  person  may  file  his  objections  to  the  application. 

Enacted  March  11,  1872. 

Hearing  of  application. 

§  1232.  After  the  time  of  publication  has  expired,  the  court 
may,  upon  five  days'  notice  to  the  persons  who  have  filed  objec- 
tions, or  without  further  notice,  if  no  objections  have  been  filed, 
proceed  to  hear  and  determine  the  application,  and  if  all  the 
.statements  therein  made  are  shown  to  be  true,  must  declare  the 
corporation  dissolved.  A  certified  copy  of  the  decree  and  order 
of  the  court  dissolving  the  corporation  must  be  filed  in  the  offico 
of  the  secretary  of  state. 

.\mended  March  20,  1907;  stats.  1907,  p.  744. 
Note. — §  1232.      The  amendment  consists  in  tlie  addition  of  the 
List    sentence,    requiring    a    certified    copy    of    the    decree    to    be 
lecorded  in  the  ofiito  of  the  secretary  of  state. 

Judgment  roil  and  appeals. 

§  1233.  The  application,  notices  and  proof  of  publication, 
objections  (if  there  be  any),  and  declaration  of  dissolution,  con- 


400  CODE   OF    CIVIL   PROCEDURE.  §  1233 

stitute  the  judgment  roll ;  and  from  the  judgment  an  appeal  may 
be  taken,  as  from  other  judgments  of  the  superior  courts. 
Amended  April  16,  1880  ;  amendts.  1880,  p.  109. 
81  Cal.  386 ;  84  Cal.  365 ;  150  Cal.  577,  578. 

Application  by  savings  and  loan  society. 

§  1234.  If  the  applicant  is  a  savings  and  loan  association,  or 
engaged  in  the  business  of  receiving  money  on  deposit,  and 
there  is  any  unclaimed  deposit  or  dividend  in  its  hands  belong- 
ing to  a  person  whose  whereabouts  are  unknown  to  the  trustees, 
directors,  or  other  officers  presenting  the  application,  the  appli- 
cation must  set  forth  the  name  of  the  person  making  such 
deposit,  or  entitled  to  such  dividend,  the  time  when  such  deposit 
was  made  or  dividend  declared,  the  residence,  if  known,  of  such 
person  at  the  time  of  such  deposit,  the  amount  of  such  deposit 
or  dividend,  and  the  fact  that  the  whereabouts  of  such  person 
are  unknown.  The  same  facts  must  be  stated  in  the  notice  of 
the  application  given  by  the  clerk.  If,  at  any  time  before  the 
expiration  of  the  time  of  publication,  any  pennon  files  a  claim  to 
such  deposit  or  dividend,  the  court  must,  at  the  hearing  and 
upon  five  days'  notice  to  him,  hear  and  determine  his  claim,  and, 
if  such  claim  is  established,  order  such  money  to  be  paid  to  him. 
All  such  deposits  or  dividends  not  so  claimed,  or  as  to  which  no 
claim  shall  be  established,  must,  upon  order  of  the  court,  be 
paid  into  the  state  treasury,  accompanied  with  a  copy  of  the 
order,  which  must  set  forth  the  facts  hereinbefore  required  to  be 
stated  concerning  such  deposits  or  dividends ;  and,  upon  produc- 
tion of  the  treasurer's  receipt  for  such  payment,  the  court  may 
proceed  to  declare  the  corporation  dissolved  as  in  other  cases. 
All  unclaimed  deposits  and  dividends  so  paid  into  the  state 
treasury  must  be  received,  invested,  accounted  for,  and  paid  out, 
in  the  same  manner  and  by  the  same  ofiicers  as  is  provided  by 
law  in  the  ca.se  of  escheated  estates,  and  in  section  twelve  hun- 
dred and  seventy-two. 

Amended  March  16,  1907 ;  stats.  1907,  p.  318. 

Note. — §  1234.  The  word  "unknown,"  sub.stituted  for  the 
word  "known,"  to  correct  a  manifest  error. 


§  1275  CODE   OF   CIVIL  PROCEDURE.  401 

TITLE  IX. 
Of  Change  of  Names. 

Sec.  1275.     Jurisdiction. 

127G.     Application  for  change  of  name,  liow  made. 
1377.     Order  to   sliow  cause;   publication;   proof  of  publica- 
tion. 

1278.  Hearing   of    application    and    remonstrance;    corpora- 

tion.s  ;  change  of  name. 

1279.  County  clerk  to  file  copy  of  decree  with  secretary  of 

state. 

Jurisdiction. 

§  1275.  Applications  for  change  of  names  must  be  heard  and 
<lptermined  by  the  superior  courts. 

Amended  April  23.  1880 ;  amendts.  ISSO.  p.  117. 
12.3  Cal.  .526.  624;  1.50  Cnl.  320. 

Application  for  change  of  name,   how  made. 

§  1276.  All  applications  for  change  of  names  must  be  made 
to  the  superior  court  of  the  county  where  the  person  whose 
name  is  proposed  to  bo  changed  resides,  by  petition,  signed  by 
such  person  ;  and  if  such  per.son  is  under  twenty-one  years  of 
age,  if  a  male,  and  under  the  age  of  eighteen  years  of  age,  if  a 
female,  by  one  of  the  parents,  if  living,  or  if  both  be  dead,  then 
by  the  guardian  ;  and  if  there  be  no  guardian,  then  by  some  near 
relative  or  friend.  The  petition  must  specify  the  place  of  birth 
and  residence  of  such  person,  his  or  her  present  name,  the  name 
proposed,  and  the  reason  for  such  change  of  name  :  and  must,  if 
the  father  of  such  person  be  not  living,  name,  as  far  as  known  to 
the  petitioner,  the  near  relatives  of  such  person,  and  their  place 
of  residence.  Any  religious,  benevolent,  literary,  scientific,  or 
other  corporation,  or  any  corporation  bearing  or  having  for  its 
name,  or  using  or  being  known  by  the  name  of  any  benevolent 
or  charitable  order  or  society,  may,  by  petition,  apply  to  the 
.superior  court  of  the  county  in  which  its  articles  of  incorporation 
were  originally  filed,  or  in  which  the  property  of  such  incorpora- 
tion is  situated,  for  a  change  of  its  corporate  name.  Such  peti- 
tion must  be  signed  by  a  majority  of  the  directors  or  trustees 
of  the  corporation,  and  must  specify  the  date  of  the  formation 
of  the  corporation,  its  present  name,  the  name  proposed,  and  the 


402  CODE   OF    CTVII.   PROCEDTTRE.  §   1276 

leasou  for  such  cliauge  of  name.  Upou  filing-  sucli  petition  on 
behalf  of  such  corporation,  the  same  proceedings  shall  be  had  as 
upon  applications  for  changes  of  names  of  natural  persons,  and 
no  banking  corporation  hereafter  organized  shall  adopt  or  use 
I  he  name  of  any  friendly  association. 

.Vmended  March  12.  1885;  stats.  ISSH.  [..  112. 
123  Cal.  52(5.  530. 

Order  to  show  cause;   publication;   proof  of   publication. 

§  1277.  Upon  the  filing  of  the  said  petition  the  court  shall  there- 
upon make  an  order  reciting  the  filing  of  the  application,  the 
name  of  the  person  or  corporation  by  whom  it  is  filed  and  the 
name  proposed,  and  directing  all  persons  intei'ested  in  said 
matter  to  appear  before  the  court,  at  a  time  and  place  specified, 
not  less  than  four  or  more  than  eight  weeks  from  the  time  of 
making  such  order,  to  show  cause  why  the  application  for 
change  of  name  should  not  be  granted.  A  copy  of  the  order  1o 
show  cause  must  be  published  for  four  successive  weeks  in  some 
newspaper  of  general  circulation  to  be  designated  in  the  order, 
printed  in  the  county,  if  a  newspaper  be  printed  therein,  or. 
if  no  newspaper  be  printed  in  the  county,  a  copy  of  such  order 
to  show  cause  shall  be  posted  by  the  clerk  of  the  court  in  three 
of  the  most  public  places  in  the  county  in  which  the  court  is 
held,  for  a  like  period.  Proof  must  be  made  to  the  .satisfaction 
of  the  court,  of  such  publication,  or  posting,  at  the  time  of  the 
liearing  of  the  application. 

Amended  March  3,  1905 ;  stats.  1905,  p.  40. 
123  Cal.  526. 

Hearing  of  application  and  remonstrance;  corporations;  change 
of  name. 
S  1278.  Such  application  must  be  heard  at  such  time  as  the 
court  may  appoint,  and  objections  may  be  filed  by  any  person 
who  can,  in  such  ob.iections,  show  to  the  court  good  reason 
against  such  change  of  name.  On  the  hearing,  the  court  may 
examine  on  oath  any  of  the  petitioners,  remonstrants,  or  other 
persons,  touching  the  application,  and  may  make  an  order 
changing  the  name,  or  dismissing  the  application,  as  to  the 
court  may  seem  right  and  proper  ;  provided,  that  if  the  appli- 
cant for  a  change  of  name  be  a  corporation,  such  applicant  shall 
file  in  court  at  the  time  of  hearing  the  application,  the  certificate 
of  the  secretary  of  state  that  the  name  desired  to  be  used  by  the 


S  127S  CODE  OF   CIVIL   I'ROCELtUKK.  403 

applicant  is  not  the  corporate  name  of  any  cori)oration  exist iiij; 
at  said  time,  aiul  that  said  name  does  not  so  closely  resemble  the 
name  of  any  such  existing  corporation  as  will  tend  to  deceive. 
Amended  March  14,  1905 ;  stats.  1905.  p.  99. 
123  Cal.  526. 

County  clerk  to  file  copy  of  decree  with  secretary  of  state. 

§  1279.  A  certified  copy  of  the  decree  of  the  court,  changing 
the  name  of  a  person  or  corporation,  shall  within  thirty  days 
from  the  date  of  such  decree,  he  filed  in  the  oHico  of  ihe  secre- 
tary of  state. 

Amended  March  18,  1907 ;  stats.  1907,  p.  345. 
123  Cal.  52G ;  150  Cal.  320. 

Note. — §  1279.  The  change  compels  the  filing  ha  the  office  of 
the  secretary  of  state  of  a  certified  copy  of  the  decree  of  court, 
clianging  tlie  name  of  a  person  or  corporation,  instead  of  the 
former  metliod  of  malcing  return  to  tliat  office,  a  method  whicli 
experience  liad  shown  to  be  impossible  of  enforcement,  malting 
the  section  uniform  witli  the  provisions  of  section  300rt  of  the 
Civil  Code,  added  in  1903. 

See,  also,  section  SOOor  of  the  Civil  Code. 


TITLE  XI. 
Of  Proceedings  in  Probate  Courts. 

CHAPTER  III. 
OF   EXECUTORS  AND  ADMINISTRATORS,   ETC. 

Article  I. 
Letters  Testamentary  and  of  Administration,    Etc. 

Sec.  1348.      Corpor.'itidns  as  executor.s. 

Corporations  as  executors. 

§  1348.  Corporations,  authorized  by  their  articles  of  incor- 
poration to  act  as  executor,  administrator,  guardian  of  estates, 
assignee,  receiver,  depository,  or  trustee,  and  having  a  paid-up 
capital  of  not  less  than  two  hundred  and  fifty  thousand  dollars, 
of  which  one  hundred  thousand  dollars  shall  have  been  actually 
paid  in  in  cash,  may  be  appointed  to  act  in  such  capacity  in  like 
manner  as  individuals.     In  all  cases  in  which  it  is  required  that 


404  CODE   OF   CIVIL.   PROCEDURE.  §  1348 

an  executor,  aduiiuistrator,  guardian,  assignee,  receiver,  depos- 
itory, or  trustee,  shall  qualify  by  taking  and  subscribing  an  oath, 
or  in  which  an  affidavit  is  required,  it  shall  be  a  sufficient  qualifi- 
cation by  such  corporation,  if  such  oath  shall  be  taken  and 
subscribed,  or  such  affidavit  made,  by  the  president  or  secretary 
or  manager  thereof ;  and  such  officer  shall  be  liable  for  the  failure 
of  such  corporation  to  perform  any  of  the  duties  required  by  law 
to  be  perfonned  by  individiuils  acting  in  like  capacity  and  sub- 
ject to  like  penalties ;  and  such  corporation  shall  be  liable  for 
such  failure  to  the  full  amount  of  its  capital  stock  and  upon  the 
bond  required  upon  its  assuming  the  trusts  provided  for  herein. 

Enacted  March  5,  1887:  stats.  1887,  p.  21. 

See  act  of  April  0,  1891,  authorizing  certain  corporations  to 
act  as  executors,  Appendix,  under  heading  "Executors." 


PENAL    COUE.  405 


PENAL  CODE. 


PORTIONS  RELATING  TO  PRIVATE  CORPORATIONS. 


PRELIMINARY   PROVISIONS. 

Sec.  7.     Certain    terms   defined    in    tlie    senses   in    wliicli    they   are 
nsi'd  in  tin's  code. 

Certain  terms  defined  in  the  senses  in  which  tl-,ey  are  used  in 
this  code. 

S  7.  AVordK  used  in  this  code  in  the  present  tense  iiichule  the 
I'litnre  us  well  ;is  the  present  :  words  nsed  in  the  masculine 
:;ender  include  the  feminine  aixl  neuter :  the  siu;;ular  number 
includes  the  plural,  and  the  plural  the  sinjyular ;  the  word  "per- 
son" incktdes  a  con)oration  as  well  as  a  natural  person :  the 
word  "county"  includes  "city  and  county"  :  writing  includes 
printing  and  tyi)e\vritiug :  oath  includes  affirmation  or  declara- 
tion ;  and  every  mode  of  oral  statement,  under  oath  or  affirma- 
tion.  is  embraced  by  th(>  term  "testify."  and  every  written  one 
in  the  term  "depose":  si.anature  or  .subscription  includes  mark, 
when  the  person  can  not  write,  his  name  being  written  near  it, 
by  a  person  who  writes  his  own  name  as  a  witness;  provided, 
that  when  a  signature  is  made  liy  mark  it  must,  in  order  that 
the  same  may  be  acknowledged  or  serve  as  the  signature  to  any 
sworn  statement,  be  witnessed  by  two  persons  who  must  sub- 
scribe their  own  names  as  witnesses  thereto. 

The  following  words  liave  in  this  code  the  signification  attached 
to  them  in  this  section,  unless  otliei-wisc  apparent  from  the  con- 
te.xt  : 

I.  The  wofd  ■■wilit'iiJly,"  when  applied  lo  the  intent  with 
which  an  act  is  done  or  oniilieil.  implies  simply  a  purpose  or 
willingness  to  eoininit  ih<'  act.  of  make  the  omission  referred 
to.  It  does  not  require  any  intent  to  \iolate  law.  or  to  in.jurc 
anotlier,  or  to  acquire  any  advantage ; 


406  PENAL   CODE.  §  7 

2.  The  words  "neglect,"  "negligence,"  "negligent,"  and  "negli- 
gently" import  a  want  of  such  attention  to  the  nature  or  prob- 
able consequences  of  the  act  or  omission  as  a  prudent  man 
ordinarily  bestows'  in  acting  in  his  own  concerns ; 

3.  The  word  "corruptly"  imports  a  wrongful  design  to  acquire 
or  cause  some  pecuniary  or  other  advantage  to  the  person  guilty 
of  the  act  or  omission  referred  to,  or  to  some  other  person ; 

4.  The  words  "malice"  and  "maliciously"  import  a  wish  to 
vex,  annoy,  or  injure  another  person,  or  an  intent  to  do  a  wrong- 
ful act,  established  either  by  proof  or  presumption  of  law  ; 

5.  The  word  "knowingly"  imports  only  a  knowledge  that  the 
facts  exist  which  bring  the  act  or  omission  within  the  provisions 
of  this  code.  It  does  not  require  any  knoAvledge  of  the  unlawful- 
ness of  such  act  or  omission  ; 

6.  The  word  "bribe"  signifies  anything  of  value  or  advantage, 
present  or  prosijective,  or  any  promise  or  undertaking  to  give 
any,  asked,  given,  or  accepted,  with  a  corrupt  intent  to  influence, 
unlawfully,  the  person  to  Avhom  it  is  given,  in  his  action,  vote, 
or  opinion,  in  any  public  or  ofiicial  capacity; 

7.  The  word  "vessel,"  when  used  with  reference  to  shipping, 
includes  ships  of  all  kinds,  steamboats,  canal-boats,  barges,  and 
every  structure  adapted  to  be  navigated  from  place  to  place  for 
the  transportation  of  merchandise  or  persons ; 

8.  The  words  "peace  officer"  signify  any  one  of  the  officers 
mentioned  in  section  eight  hundred  and  seventeen ; 

9.  The  word  "magistrate"  signifies  any  one  of  the  oSicers 
mentioned  in  section  eight  hundred  and  eight ; 

10.  The  word  "property"  includes  both  real  and  personal 
property  ; 

11.  The  words  "real  property"  are  coextensive  with  lands, 
tenements,  and  hereditaments ; 

12.  The  words  "personal  property"  include  money,  goods, 
chattels,  things  in  action,  and  evidences  of  debt; 

13.  The  word  "month"  means  a  calendar  month,  unless  other- 
wise expressed  ;  the  word  "daytime"  mean.s  the  period  between 
sunrise  and  sunset,  and  the  word  "nighttime"  means  the  period 
between  sunset  and  sunrise  : 

14.  The  word  "will"  includes  codicil  ; 

15.  The  word  "writ"  signifies  an  order  or  precept  in  writing, 
issued  in  tlie  name  of  llie  people,  or  of  a  court  or  judicial  officf^r. 


§  7  PENAL   CODE. 


407 


and  the  word  "process"  a  writ  or  summons  issued  in  the  course 
of  judicial  proceedings ; 

16.  Words  and  phrases  must  be  construed  according  to  the 
context  and  the  approved  usage  of  the  language;  but  technical 
words  and  phrases,  and  such  others  as  may  have  acquired  a 
peculiar  and  appropriate  meaning  in  law,  must  be  construed 
according  to  such  peculiar  and  appropriate  meaning ; 

17.  Words  giving  a  joint  authority  to  three  or  more  public 
officers  or  other  persons,  are  construed  as  giving  such  authority 
to  a  majority  of  them,  unless  it  is  otherwise  expressed  in  the  act 
giving  the  authority  ; 

18.  When  the  seal  of  a  court  or  public  officer  is  required  by 
law  to  be  affixed  to  any  paper,  the  word  "seal"  includes  an 
impression  of  such  seal  upon  the  paper  alone,  or  upon  any  sub- 
stance attached  to  the  paper  capable  of  receiving  a  visible 
impre.^^sion.  The  seal  of  a  private  person  may  be  made  in  like 
manner,  or  by  the  scroll  of  a  pen,  or  by  writing  the  word  "seal" 
against  his  name ; 

19.  The  word  "state,"  when  applied  to  the  different  parts  of 
the  United  States,  includes  the  District  of  Columbia  and  the  ter- 
ritories, and  the  words  "United  States"  may  include  the  district 
and  territories ; 

20.  The  word  "section,"  whenever  hereinafter  employed,  refers 
to  a  section  of  this  code,  unless  some  other  code  or  statute  is 
expressly  mentioned. 

Amended  March  21,  190.5:  stats.  1905,  p.  035. 

58  Cal.  269 ;  G7  Cal.  422 ;  68  Cal.  363,  438  ;  70  Cal.  533 
72  Cal.  613,  616 ;  82  Cal.  468 ;  96  Cal.  177 ;  105  Cal.  639 
130  Cal.  577 ;  136  Cal.  530 ;  141  Cal.  114  ;  144  Cal.  355 
2  Cal.  App.  459 ;  4  Cal.  App.  721 :  7  Cal.  App.  367,  689 
VIII  Cal.  App.  Dec.  567. 


408  PENAL    CODE.  §  ITS 

PART  I. 

OF  CRIMES  AND  PUNISHMENTS. 

TITLE  VII. 
Of  Crimes  Against  Public  Justice. 

CIIAPTEK   VII. 

OTHER    OFFENSES    AGAINST    PUBLIC    JUSTICE. 

Sec.  178.     Officers  of  corporations  not   to  employ  Chinese.      [Re- 
pealed.] 
179.      Corporation.s   not   to  employ   Chinese.      [Repealed.] 

Officers  of  corporations   not  to  employ   Chinese.     [Repealed.] 

§  178.  Officers  of  corporations  not  to  euii)loy  Chinese.  [Re- 
pealed March  21.  100.5;  stats.  IIIO.-.  ,>.  C'c'.] 

Corporations   not  to  employ   Chinese.      [Repealed.] 

§179.  Corporations  not  t(j  <'in|>lny  Chinese.  [Itepealed  jNIarch 
21,  1905;  stats.  1905,  p.  652.] 

Note. — §Ji  178,  179.  These  sections  were,  in  the  circuit  court 
of  the  United  States,  nintli  judicial  district,  explicitly  held  to  be 
in  violation  of  the  Constitution  of  the  United  States,  on  May  22, 
1880.  (In  re  Parrutt.  5  Pac.  Coast  L.  J.  161.)  They  are  now 
obsolete.  An  ordinance  in  somewhat  similar  terms  was  also  held 
unconstitutional  in  Ex  parte  Kuback,  85  Cal.  274.  (See.  also, 
sec.  2,  art.  XIX,  Constitution  of  California,  ante.) 

TITLE  IX. 

Of  Crimes  Against  the  Person  and  Against  Public 
Decency  and  Good  Morals. 

CHAPTER   II. 

ABANDONMENT   AND    NEGLECT   OF    CHILDREN. 

Skc.  273c.      Minors  u<it   Ici  (li^liM'i-  ines.s;if;es.  I'lc.   to  certain  places. 
213f.       Sending  cliildren  lo  immoral  jjlace-s. 

Minors  not  to  deliver  messages,  etc.,  to  certain   places. 

S  273<'.  lOvcry  teleiihone,  special  delixcry  (•onii)any  oi-  asso- 
ciation,  and  e\ery   other  corjjoration   or   person   enga.uecl    in    the 


§  273''  PENAL    CODE.  409 

delivery  of  packages,  letters,  notes,  messages,  or  other  matter, 
aud  every  manager,  superintendent,  or  other  agent  of  such  per- 
son, corporation,  or  association,  who  sends  any  minor  in  the 
employ  or  under  the  control  of  any  such  person,  corporation, 
association,  or  agent,  to  the  keeper  of  any  house  of  prostitution, 
variety  theater,  or  other  place  of  questionable  repute,  or  to  any 
person  connected  with,  or  any  inmate  of,  such  house,  theater, 
or  other  place,  or  who  permits  such  minor  to  enter  such  house, 
theater,  or  other  place,  is  guilty  of  a  misdemeanor. 

Enacted  March  22,  1905 ;  stats.  1905,  p.  760. 
150  Cal.  118. 

Note. — §  273e.  The  matter  in  section  1389,  which  incorrectly 
stood  in  a  chapter  entitled  "Dismissal  of  the  action,"  lias  been  put 
into  a  new  section  designated  as  2736^  and  placed  in  its  proper 
chapter,  with  tlie  other  sections  relative  to  children,  and  section 
1389  accordingly  repealed. 

Sending  children  to  immoral  places. 

§  273/.  Any  person,  whether  as  parent,  guardian,  employer, 
or  otherwise,  and  any  firm  or  corporation,  who  as  employer  or 
otherwise,  shall  send,  direct,  or  cause  to  be  sent  or  directed  to 
any  saloon,  gambling  house,  house  of  prostitution,  or  other 
immoral  place,  any  minor  under  the  age  of  eighteen,  is  guilty  of 
a  misdemeanor. 

Enacted  March  18,  1907  ;  stats.  1907,  p.  5G5. 
7  Cal.  App.  529. 

CHAPTER  VII. 

OF    CRIMES    AGAINST    RELIGION    AND    CONSCIENCE,    AND 
OTHFR  OFFENSES  AGAINST  GOOD  MORALS. 

Sec.  310.     Advertisements,     etc.,     on     flag     proliibited.     Penalty. 
Exceptions. 

Advertisements,   etc.,  on   flag   proliibited— Penalty— Exceptions. 

§  310.  That  any  pcnsou,  firm  or  corporation,  who,  in  any 
manner,  for  exhibition  or  display,  puts,  places,  or  causes  to  be 
placed  an  inscription,  picture,  device,  design,  symbol,  name, 
advertisement,  word,  letter,  character,  mark  or  notice  of  any 
kind  whatsoever,  upon  any  flag  of  the  United  States,  or  ensign 
evidently  purporting  to  be  such  flag,  or  who  in  any  manner 
appends,  annexes  or  affixe.s  to  any  such  flag  any  inscription, 
picture,  device,  symbol,  name,  advertisement,  word,  letter,  char- 
18— CL 


410  PENAL    CODE.  §  310 

actei',  mark  or  notice  whatsoever,  or  who  displays  or  exhibits, 
or  causes  to  be  displayed  or  exhibited,  any  flag,  of  the  United 
States  or  ensign  purporting  to  be  such  flag,  upon  which  is  put, 
attached,  annexed,  aflixed  or  placed  in  any  manner,  any  inscrip- 
tion, picture,  design,  device,  symbol,  name,  advertisement,  word, 
letter,  mark  or  notice  whatsoever,  or  who  mutilates,  tramples 
upon,  or  otherwise  defaces  or  defiles  any  such  flag,  said  flag,  be 
public  or  private  property,  or  who  places  or  causes  to  be  placed 
on  any  manufactured  or  prepared  article  or  covering  of  said 
article,  such  flag,  or  indication  of  such  flag,  or  who  uses  or 
causes  to  be  used  for  purposes  of  a  commercial  or  other  trade- 
mark, such  flag,  or  indication  of  such  flag,  shall  be  fined  not 
more  than  two  hundred  dollars  or  imprisoned  not  more  than  one 
year,  or  both,  for  each  and  every  offense,  in  the  county  jail  of 
the  county  in  which  the  trial  is  held ;  provided,  hoicevcr,  that 
flags,  or  ensigns,  the  property  of  and  used  in  the  service  of  the 
United  States,  or  any  state,  territory  or  District  of  Columbia, 
may  have  inscriptions,  names  of  actions,  battles,  skirmishes,  or 
words,  marks  or  symbols,  which  are  placed  thereon  pursuant 
to  law  or  authorized  regulations ;  provided  further,  that  this 
act  shall  not  apply  to  banners  or  flags  carried  by  military  or 
patriotic  organizations  existing  under  the  laws  of  the  state  of 
California  and  the  United  States  of  America,  or  to  flags  used 
in  theatrical  performances,  or  to  flags  carried  by  political  parties, 
or  organizations,  in  parades,  or  in  public  meetings. 

New  section;  added  March  18,  1900;  stats.  1900,  p.  401  ;  in 
effect  in  sixty  days. 

CHAPTER  XI. 
PAWNBROKERS. 

Sec.  339.     Failing  to  ktep  a  register. 

34  3.     Refusing   to   allow   an    officer   with    -searcli-warrant    to 
inspect  register  of  pledged  articles. 

Falling  to  keep  a  register. 

§  339.  Every  person  who  carries  on  the  business  of  a  pawn- 
broker, or  who  purchases  gold  bars,  gold  quartz  or  gold  bullion 
or  mineral  containing  gold,  who  fails  at  the  time  of  the  trans- 
action to  enter  in  a  register  kept  by  him  for  that  purpose,  in 
the  English  language,  the  date,  duration,  amount,  and  rate  of 
interest  of  every  loan  made  by  him,  or  an  accurate  description 
of    the    proporty    pledged,    or    estimated    value    of    tlio    property 


§339  PENAL    CODE.  411 

purchased,  or  tlie  uame  and  residence  of  the  pledgor  or  seller, 
or  to  deliver  to  the  pledgor  or  seller  a  written  copy  of  such  entry, 
or  to  keep  an  account  in  writing  of  all  sales  made  by -him,  is 
guilty  of  a  misdemeanor. 

Amended  March  15,   1909;   stats.   1909,   p.   367;   in  effect   in 
sixty  days.      ( See  note  to  §  343,  post. ) 
150  Cal.  1S8,  193. 

Refusing  to  allow  an  officer  with  search-warrant  to  inspect 
register  of   pledged   articles. 

S  343.  Every  pawnbroker  or  person  who  purchases  gold  bul- 
lion, gold  bars  or  gold  quartz  or  mineral  containing  gold,  who 
fails,  refases,  or  neglects  to  produce  for  inspection  his  register, 
or  to  exhibit  all  articles  received  by  him  in  pledge,  or  his 
account  of  sales,  to  any  officer  holding  a  warrant  authorizing 
him  to  search  for  personal  property  or  to  any  person  appointed 
by  the  sheriff  or  head  of  the  police  department  of  any  city,  city 
and  county  or  town,  or  an  order  of  a  committing  magistrate 
directing  such  officer  to  inspect  such  register,  or  examine  such 
articles  or  account  of  sales,  is  guilty  of  a  misdemeanor. 

Amended  March  15,  1909;  stats.  1909.  p.  367;  in  effect  in 
sixty  days. 

Ed.  Note. — §  3  4.3.  Section  3  of  tlie  act  amending  sections  .330 
and  343  reads  as  follows:  "Sec.  3.  Providing  that  nothing  in 
this  act  shall  apply  to  persons  or  corporations  doing  a  banking 
business  in  this  state."     Stats.  1909,  p.  367. 

CITAPTER  XTI. 

OTHER    INJURIES  TO  PERSONS. 

Sec.  349a.   Frauds  in  stamping  and   labeling  produei;  and   nKinu- 
factured  goods. 

350.  Counterfeiting  trade-marks. 

351.  Selling  goods  which  bear  counterfeit  trade-mark.s. 

352.  Definition  of  "counterfeited  trade-marks,"  etc. 

353.  "Trade-mark"  defined. 

354.  Refilling  casks,  etc.,  bearing  trade-mark. 

3541/i. Selling  or  refilling  casks,  etc.,  containing  trade-mark. 

354%. Destroying  or  defacing  trade-marks. 

365.     Innkeepers  and  carriers  refusing  to  receive  guests. 

Frauds    in     stamping    and     labeling     produce    and     manufactured 
goods. 
S  349'/.      Any  i)"rson  engaged  in  the  i)roduc(i<>ii,  manufacture, 
or  sale  (if  any  ariicle  of  merchandise  made  in   whole  or  in   part 


412  PENAL  CODE.  §  349a 

in  this  state,  who,  by  auy  impi-iut.  label,  trade-mark,  tag,  stamp, 
or  other  iuscription  or  device,  placed  or  impressed  upon  such 
article,  or  upon  the  cask,  box,  case,  or  package  containing  the 
same,  misrepresents  or  falsely  states  the  kind,  character,  or 
nature  of  the  labor  employed  or  used,  or  the  extent  of  the  labor 
employed  or  used,  or  the  number  or  kind  of  persons  exclusively 
employed  or  used,  or  that  a  particular  or  distinctive  class  or  char- 
acter of  laborers  was  wholly  and  exclusively  used  or  employed, 
when,  in  fact,  another  class,  or  character,  or  distinction  of  laborers 
was  used  or  employed,  either  jointly  or  in  anywise  supplementary 
to  such  exclusive  class,  character,  or  distinction  of  laborers,  in  the 
production  or  manufacture  of  the  article  to  which  such  imprint, 
label,  trade-mark,  tag,  stamp,  or  other  inscription  or  device  is 
affixed,  or  upon  the  cask,  box,  case,  or  package  containing  the 
same,  is  guilty  of  a  misdemeanor,  and  punishable  by  a  fine  of  not 
less  than  fifty  nor  more  than  five  hundred  dollars,  or  by  imprison- 
ment in  the  county  jail  for  not  less  than  twenty  nor  more  than 
ninety  days,  or  both. 

Enacted  March  21,  1005;  stats.  1905,  p.  669. 

Counterfeiting  trade-marks. 

§  350.  Every  iserson  who  willfully  reproHuces,  copies,  imi- 
tates, forges,  or  counterfeits,  or  procures  to  be  I'eproduced, 
copied,  imitated,  forged,  or  countei'feited,  any  trade-mark  usually 
affixed  by  any  person  to  his  goods,  which  has  been  duly  recorded 
in  the  office  of  the  seci'etary  of  state,  or  with  the  commissioner 
of  patents  in  the  United  States  patent  office,  or  any  label  or 
brand,  composed  in  whole  or  in  part  of  a  reproduction  of  said 
trade-mark,  or  who  affixes  the  same  to  goods  of  essentially  the 
same  descriptive  properties  and  qualities  as  those  referred  lo 
in  the  registration  of  such  trade-mark,  with  intent  to  pass  off, 
or  to  assist  other  persons  to  pass  off,  any  goods  to  which  such 
reproduced,  copied,  imitated,  forged,  or  counterfeited  trade-mark, 
or  label,  or  brand  is  affixed,  or  intended  to  ho  affixed,  as  the 
goods  of  the  person,  firm,  company,  or  corpoi'atioii  owning  the 
said  trade-mark,  is  guilty  of  a  misdemeanor. 

Amended  March  27,  1S97;  stats.  1807,  p.  212. 

See  trade-marks.  Civ.  C.  §§  655,  991,  1772,  1773;  and  Pol.  C. 
§§  3196-3201.     See,  also.  Appendix,  heading  "Trade-marks." 

Selling   goods  which   bear  coimterfeit  trade-marks. 

S  351.  ]']\ery  jx-rson  a\Iio  sells  or  keeps  for  sale,  or  iiKUiufac- 
tures  or  xjrepares,  for  (he  purpose  of  sale,  any  goods  upon,  or  to 


§  351  PENAX    CODE.  413 

which  any  reproduced,  copied,  imitated,  forged,  or  counterfeited 
trade-mark,  or  label,  or  brand,  composed  in  whole  or  in  part  of 
such  a  reproduced,  copied,  imitated,  forged,  or  counterfeited 
trade-mark  has  been  affixed,  after  such  trade-mark  has  been 
recorder  in  the  oflBce  of  the  secretary  of  state,  or  with  the  com- 
missioner of  patents  in  the  United  States  patent  office,  intending 
to  represent  such  goods  as  the  genuine  goods  of  the  person,  firm, 
company,  or  corporation  owning  the  said  trade-mark,  knowing 
the  same  to  be  reproduced,  copied,  imitated,  forged,  or  counter- 
feited, is  guilty  of  a  misdemeanor. 

Amended  March  27,  1897 ;  stats.  1897,  p.  213. 

Genuineness  of  trade-mark  warranted  by  sale  of  article  bearing 
it :  Civ.  C.  §  1772. 

Definition  of  "counterfeited  trade-marl<s,"  etc. 

§  352.  The  phrases  "forged  trade-mark"  and  "counterfeited 
trade-mark,"  or  their  equivalents,  as  used  in  this  chapter,  include 
every  alteration  or  imitation  of  any  trade-mark  so  resembling  the 
original  as  to  be  likely  to  deceive. 

Enacted  February  14,  1872. 

"Trade-marl<"  defined. 

§  353.  The  phrase  "trade-mark,"  as  used  in  the  three  preced- 
ing sections,  includes  every  description  of  word,  letter,  device, 
emblem,  stamp,  imprint,  brand,  printed  ticket,  label,  or  wrapper, 
usually  affixed  by  any  mechanic,  manufacturer,  druggist,  mer- 
chant, or  tradesman,  to  denote  any  goods  to  be  goods  iruported, 
manufactured,  produced,  compounded,  or  sold  by  him,  other  than 
any  name,  word,  or  expression  generally  denoting  any  goods  to 
be  of  some  particular  class  or  description. 

Enacted  February  14,  1872. 

Refilling  casks,  etc.,   bearing  trade-mark. 

§  354.  Every  person  who  has  in  his  possession,  or  who  uses 
any  cask,  bottle,  vessel,  case,  cover,  label,  brand,  or  other  thing 
bearing,  or  having  in  any  way  connected  with  it,  the  trade-mark 
of  another,  which  has  been  duly  recorded  in  the  office  of  the 
secretary  of  state,  or  with  the  commissioner  of  patents  in  the 
United  States 'patent  office,  or  the  trade  name  of  another,  for  the 
purpose  of  disposing  of  any  article  other  than  that  which  such 
cask,  bottle,  vessel,  case,  cover,  label,  brand,  or  other  thing 
originally  contained,  or  is  connected  with  by  the  owner  of  such 


414  PENAI,    CODE.  §  354 

trade-mark  or  trade  name,  with  intent  to  deceive  or  defraud,  is 
guilty  of  a  misdemeanor. 

Amended  March  27,  1897;  stats.  1897,  p.  213. 

Selling   or  refilling  casks,  etc.,  containing  trade-mark. 

§  354|/2.  Every  person  who  willfully  sells,  or  traffics  in  any 
cask,  keg,  bottle,  vessel,  siphon,  can,  case,  or  other  package  bear- 
ing the  duly  filed  trade-mark  or  name  of  another,  printed, 
branded,  stamped,  engraved,  etched,  blown,  or  otherwise  attached 
or  produced  thereon,  or  refills  any  such  cask,  keg,  bottle,  vessel, 
siphon,  can,  case,  or  other  package  with  intent  to  defraud  the 
owner  thereof,  without  the  consent  of  the  owner  thereof,  or 
unless  the  same  shall  have  been  purchased  from  the  owner 
thereof,  is  guilty  of  a  misdemeanor. 

Enacted  March  14,  1899 ;  stats.  1899,  p.  103. 

See,  also,  "Trade-marks,"  statutes  at  large,  Appendix. 

Destroying  or  defacing  trade-marks. 

§  354%.  Every  person  who  .shall  willfully  deface,  erase,  oblit- 
erate, cover  up,  or  otherwise  remove,  destroy,  or  conceal  the 
duly  filed  trade-mark,  or  name  of  another,  printed,  branded, 
stamped,  engraved,  etched,  blown,  impressed,  or  otherwise 
attached  to,  or  produced  upon  any  cask,  keg,  bottle,  vessel, 
siphon,  can,  case,  or  other  package,  for  the  purpose  of  selling 
or  traflicking  in  such  cask,  keg,  bottle,  vessel,  siphon,  can,  case, 
or  other  package,  or  refilling  such  cask,  keg,  bottle,  vessel, 
siphon,  can,  case,  or  other  package,  with  intent  to  defraud  the 
owner  thereof  without  the  consent  of  the  owner,  or  unless  the 
same  shall  have  been  purchased  from  the  owner,  is  guilty  of  a 
misdemeanor. 

Enacted  March  9,  1899 ;  stats.  1899,  p.  86. 

See  "Trade-marks,"  Appendix. 

Innkeepers  and  carriers  refusing  to  receive  guests. 

§  365.  Every  person,  and  every  agent  or  officer  of  any  cor- 
poration, carrying  on  business  as  an  innkeeper,  or  as  a  common 
carrier  of  passengers,  who  refuses,  without  just  cause  or  excuse, 
to  receive  and  entertain  any  guest  or  to  receive  and  carry  any 
passenger,  is  guilty  of  a  misdemeanor. 

Enacted  February  14,  1872. 

See,   also,   "Emigration,"   statutes   at  large.   Appendix. 

Common  carriers  of  passengers:  See  Civ.  C.  §§2168  to  2176, 
and  2180  to  2191. 


§  369a  PENAL  CODE.  415 

TITLE  X. 

Of  Crimes  Against  the  Public  Health  and  Safety. 

Se<::.  3G9«..   Street  cars  to  have  proper  brakes  and  IVmlers. 

■iC'ib.   Confining   cattle,    sheep,    or    swuie    in    ears    Idr    longer 

than  certain  time. 
375a.  Record  of  sale  of  explosives. 
383rt.   Sale  of  process  or  renovated  butter. 

386.  Maintaining  bridge  or  ferry  without  authority. 

387.  Violating  cohdition  of  undertaking  to  keep  ferry. 

388.  Riding  or  driving  faster  than  a  walk  on  toll-bridges. 

389.  Crossing  toll-bridges,  etc.,  without  paying  toll. 
402c.  Unsafe  scaffolding,  ladders,  etc. 

Street  cars  to  have  proper  brakes  and  fenders. 

§  369^/.  Any  person,  company,  or  corporation,  operating  cars 
on  the  streets  of  cities  or  towns,  or  on  the  county  roads  within 
the  state,  for  the  conveyance  of  passengers,  propelled  by  means 
of  wire  roi>es  attached  to  stationary  engines,  or  by  electricity  or 
compressed  air,  who  runs,  operates,  or  uses  any  car  or  dummy, 
unless  each  car  and  dummy,  while  in  use,  is  fitted  with  a  brake 
capable  of  bringing  such  car  to  a  stop  within  a  reasonable  dis- 
tance, and  a  suitable  fender,  or  appliance  placed  in  front  or 
attached  to  the  trucks  of  such  dummy  or  car,  for  the  purpose 
of  removing  and  clearing  obstructions  from  the  track,  and  pre- 
venting any  obstacles,  obstructions,  or  person  on  the  track  from 
getting  under  such  dummy  or  car,  and  removing  the  same  out 
of  danger,  and  out  of  the  way  of  such  dummy  or  car,  is  guilty  of 
a  misdemeanor.  Where  the  board  of  supervisors  of  any  county, 
or  the  city  council  or  other  governing  body  of  any  city,  by  ordi- 
nance, order,  or  resolution,  prescribes  the  fender  or  brake  to  be 
used  as  aforesaid,  then  a  compliance  with  such  ordinance,  order, 
or  resolution  must  be  deemed  a  full  compliance  with  the  pro- 
visions of  this  section. 

Enacted  March  22,  1905  ;  stats.  1905,  p.  7G6. 

Note. — §  369a.     This  is  a  codification  of  the   statute  of   1899, 
page  183. 


416  PENAL  CODE.  §  3696 

Confining  cattle,  sheep,  or  swine  in  cars  for  longer  than  certain 
time. 

§  369Z).  Any  ofTicer,  agent  or  conductor  of  any  company  or 
person  operating  any  railroad  in  this  .state,  who  is  carrying  and 
transporting  cattle,  sheep,  or  swine  in  carload  lots,  confines  the 
same  in  cars  for  a  longer  period  than  thirty-six  consecutive 
hours,  without  unloading  for  rest,  water  and  feeding,  for  a 
l)eriod  of  at  least  ten  con.secutive  hours,  is  guilty  of  a  misde- 
meanor. In  estimating  such  time  of  confinement,  the  period 
during  which  the  animals  have  been  confined  without  such  rest 
on  connecting  roads  from  which  they  are  received,  must  be  com- 
puted. In  case  the  owner  or  person  in  charge  of  such  animal 
refuses  or  neglects  to  pay  for  the  care  and  feed  of  animals  so 
rested,  the  company  or  person  operating  such  railroad  may  charge 
the  expense  thereof  to  the  owner  or  consignee  and  retain  a  lien 
upon  the  animals  therefor  until  the  same  is  paid. 

Enacted  March  21,  1905 ;  stats.  Id0~>,  p.  G72. 

Note. — §  369^.  Tliis  is  a  codification  of  section  2  of  cliapter  3 
of  the  statute  of  1S77-S,  page  969. 

Record  of  sale  of  explosives. 

§  375a.  It  is  the  duty  of  each  and  every  person,  association, 
joint  stock  company,  and  corporation,  manufacturing,  storing, 
selling,  transferring,  disposing  of,  or  in  any  manner  dealing  in, 
or  with,  or  using,  or  giving  out  nitroglycerine,  dynamite,  vigorite, 
horcules  powder,  giant  powder,  or  other  high  explosive,  by  what- 
ever name  known,  to  keep  at  all  times  an  accurate  journal,  or 
hook  of  record,  in  which  must  be  entered,  from  time  to  time,  as 
it  is  made,  each  and  every  sale,  delivery,  transfer,  gift,  or  other 
disposition  made  by  such  person,  firm,  association,  joint  stock 
loinpany,  or  corporation,  in  the  course  of  business  or  otherwise, 
of  any  quantity  of  such  explosive  substance.  Such  journal  or 
record  book  must  show,  in  a  legible  handwriting,  to  be  entered 
therein  at  the  time,  a  complete  history  of  each  transaction,  stat- 
ing the  name  and  quantity  of  the  explosive  sold,  delivered,  given 
away,  transferred,  or  otherwise  disposed  of;  the  name,  place  of 
residence,  or  business  of  the  purchaser,  or  transferee ;  the  name 
of  the  individual  to  whom  delivered,  with  his  or  her  address,  with 
a  description  of  such  individual  sufiicient  for  identification. 
Such  journal  or  record  book  must  be  kept  by  the  person,  firm, 
association,  joint  stock  company,  or  corporation  so  selling,  deliv- 
ering,  or   otherwise   disposing  of  such   explosive   substance,   or 


§  375a  PENAL  CODE.  417 

substances,  in  his  or  their  principal  office  or  place  of  business 
at  all  times  subject  to  the  inspection  and  examination  of  the 
peace  officers,  or  other  police  authorities  of  the  state,  county,  or 
municipality  where  the  same  is  situated,  on  proper  demand  made 
therefor.  Any  failure  or  neglect  to  keep  such  book,  or  to  make 
the  proper  entries  therein  at  the  time  of  the  transaction,  as 
herein  provided,  or  to  exhibit  the  same  to  the  peace  officers  or 
other  police  authorities  on  demand,  is  deemed  a  misdemeanor, 
and  punishable  accordingly.  In  addition  to  such  punishment, 
and  as  a  cumulative  penalty,  such  person,  firm,  association,  joint 
stock  company,  or  corporation  so  offending,  shall  forfeit,  for  each 
offense,  the  sum  of  two  hundred  and  fifty  dollars,  to  be  recovered 
in  any  court  of  competent  jurisdiction.  The  party  instituting  an 
action  for  such  forfeiture  shall  not  be  entitled  to  dismiss  the 
same  without  consent  of  the  court  before  which  the  suit  has  been 
instituted.  Nor  shall  any  judgment  recovered  be  settled,  sat- 
isfied, or  discharged,  save  by  order  of  such  court,  after  full  pay- 
ment into  court,  and  all  moneys  so  collected  must  be  paid  to  the 
party  bringing  the  suit. 

Enacted  March  22,  1905  ;  stats.  1905,  p.  7G8. 

Note. — §375a.  This  is  a  codification  of  sections  1,  2,  3  and  4 
of  tlie  statute  of  1S87,  page  110. 

Sale  of  process  or  renovated  butter. 

§  383ff.  Any  person,  firm,  or  corporation,  who  sells  or  offers 
for  sale,  or  has  in  his  or  its  possession  for  sale,  any  butter 
manufactured  by  boiling,  melting,  deodorizing,  or  renovating, 
which  is  the  product  of  stale,  rancid,  or  decomposed  butter,  or 
by  any  other  process  whereby  stale,  rancid,  or  decompo.scd  butter 
is  manufactured  to  resemble  or  appear  like  creamery  or  dairy 
I)ulter,  unless  the  same  is  plainly  stenciled  or  branded  upon  each 
and  every  package,  barrel,  firkin,  tub,  pail,  square,  or  roll,  in 
letters  not  less  than  one  half  inch  in  length,  "process  butter,"  or 
"renovated  butter,"  in  such  a  manner  as  to  advise  the  pur- 
chaser of  the  real  character  of  such  "process"  or  "renovated" 
butter,  is  guilty  of  a  misdemeanor. 

Enacted  March  22,  1905 ;  stats.  1905,  p.  770. 
Note. — §  383a.     The  statute  of  1899,  page   25    (I'-epealed   1005, 
page  470),   is  liere  re-enacted  and  codified. 

Maintaining   bridge  or  ferry  without   authority. 

§  386.  Every  person  who  demands  or  receives  compensation 
for  the  use  of  any  bridge  or  ferry  or  sets  up  or  keeps  any  road, 


418  PENAL    CODE.  §  386 

bridge,  fen-.v,  or  constructed  ford,  for  the  purpose  of  receiving 
any  remuneration  for  the  use  of  the  same,  without  authority  of 
hvw,  is  guilty  of  a  misdemeanor. 

Enacted  February  14,  1872. 

I'ublic  ferries  and  toll-bridges  :  §  284.3  ct  scq.,  I'ol.  C. 

Violating    condition    of    undertaking    to   keep   ferry. 

S  387.  E\ery  person  who,  having  entered  into  an  undertaking 
to  keep  and  attend  a  ferry,  violates  the  conditions  of  such  under- 
taking, is  guilty  of  a  misdemeanor. 

Enacted  February  14,  1872. 

Undertaking  by  ferryman  :    §  2850,  Tol.  C. 

Riding   or   driving   faster  than   a   walk   on   toll-bridges. 

§  388.  Every  person  who  willfully  rides  or  drives  faster  than 
a  walk  on  or  over  any  toll-bridge,  lawfully  licensed,  is  punishable 
by  fine  not  exceeding  twenty  dollars. 

Enacted  February  14,  1872. 

Crossing   toll- bridges,    etc.,    without    paying   toll. 

§  389.  Every  person  not  exempt  from  paying  tolls,  who 
crosses  on  any  ferry  or  toU-bridgo,  or  passes  through  any  toll- 
gate,  lawfully  kept,  without  paying  the  toll  therefor,  and  with 
intent  to  avoid  such  payment,  is  punishable  by  fine  not  exceeding 
twenty  dollars. 

Enacted  February  14,  1872. 

Unsafe  scaffolding,  ladders,  etc. 

§  402o.  Any  jierson  or  corporation  employing  or  directing 
another  to  do  or  perform  any  labor  in  the  construction,  altera- 
tion, repairing,  painting  or  cleaning  of  any  house,  building  or 
structure  within  this  state,  who  knowingly  or  negligently  fur- 
nishes or  erects  or  causes  to  be  furnished  or  erected  for  the  per- 
formance of  such  labor,  unsafe  or  improper  scaffolding,  slings, 
hangers,  blocks,  pulleys,  stays,  braces,  ladders,  irons,  ropes  or 
other  mechanical  contrivances,  or  who  hinders  or  obstructs  any 
officer  attempting  to  inspect  the  same  under  the  provisions  of 
section  "twelve"  of  "an  act  to  establish  and  support  a  bureau  of 
labor  statistics  approved  March  3,  1883,  approved  February  20, 
IMOl"  or  who  destroys,  defaces,  or  removes  any  notice  posted 
llicrcon  by  such  officer,  or  i)ermits  the  use  thereof,  afler  the  same 
li.is  been  declared  unsafe  by  such  officer,  contrary  to  the  provi- 


§  402o  PENAL   CODE.  419 

sions  of  said  section  "twelve"  of  said  act,  shall  be  guilty  of  a 
misdemeanor. 

Amended  March  13,  1909;  stats.  1909,  p.  337;  in  effect  in 
sixty  days. 

TITLE  XI. 
Of  Crimes  Against  the  Public  Peace. 

Sec.  421.     National  giiard,   discrimination  again.st  members  of. 

National   guard,   discrmlnation   against   members  of. 

§  421.  No  association  or  corporation  shall  by  any  constitu- 
tion, rule,  by-law,  resolution,  vote  or  regulation,  discriminate 
against  any  member  of  the  National  Guaixl  of  California  because 
of  his  membership  therein.  Any  person  who  willfully  aids  in 
enforcing  any  such  constitution,  rule,  by-law,  resolution,  vote  or 
regulation  against  any  member  of  said  National  Guard  of  Cali- 
fornia, is  guilty  of  a  misdemeanor. 

Enacted  March  18,  1905  ;  stats.  190.5,  p.  190. 


TITLE  XII. 

Of  Crimes  Against  the  Revenue  and  Property  of 
This  State. 

Sec.  434.     Refusing  to  give  names  of  persons  employed,  etc.,   to 

tax  or  license  collector. 
435.     Carrying  on  business  without  license. 
439.     Effecting   insurance   on   account   of  foreign    companies 

that  have  not  complied  with  the  laws  of  this  state. 

Refusing  to  give  names  of  persons  employed,  etc.,  to  tax  or 
license  collector. 

§  434.  Every  person  who,  when  requested  by  the  collector  of 
taxes  or  licenses,  i-efuses  to  give  to  such  collector  the  name  and 
residence  of  each  man  in  his  employment,  or  to  give  such  col- 
lector access  to  the  building  or  place  where  such  men  are 
i'mi)loyed,  is  guilty  of  a  misdemeanor. 

Enacted  February  14,  1872. 


420  PENAL    CODE.  §  435 

Carrying   on   business  without   license. 

§  435.  Every  person  who  commences  or  carries  on  any  busi- 
ness, trade,  profession,  or  calling,  for  the  transaction  or  carrying 
on  of  which  a  license  is  reHinired  by  any  law  of  this  state,  with- 
out taking  out  or  procuring  the  license  prescribed  by  such  law, 
is  guilty  of  a  misdemeanor. 
Enacted  February  14,  1872. 

69  Cal.  608;  71  Cal.  468;  85  Cal.  210;  106  Cal.  404; 
114  Cal.  282;  149  Cal.  768;  152  Cal.  703,  704;  5  Cal. 
App.  578,  579,  580,  581;.  VIII  Cal.  App.  Dec.  254. 

Effecting  insurance  on  account  of  foreign  companies  that  have 
not  complied  with  the  laws  of  this  state. 

§  439.  Every  person  who  in  this  state  procures,  or  agrees  to 
procure,  any  insurance  for  a  resident  of  this  state,  from  any 
insurance  company  not  incorporated  under  the  laws  of  this  state, 
unless  such  company  or  its  agent  has  filed  the  bond  required  by 
the  laws  of  this  stale  relating  to  insurance,  is  guilty  of  a  mis- 
demeanor. 

Enacted  February  14,  1872. 

Bonds  from  foreign  corporations:  See  I'ol.  (".  §S  .59('),  62.3,  624. 


TITLE  XIII. 
Of  Crimes  Against  Property. 

CHAPTER  VI. 
EMBEZZLEMENT. 

Sec.  504.     When  officer,  etc.,  guilty  of  embezzlement. 

505.  Carrier,  when  guilty  of  embezzlement. 

506.  When  trustee,  banker,  etc.,  guilty  of  embezzlement. 

When  officer,  etc.,  guilty  of  embezzlement. 

§  504.  Every  oflicer  of  this  state,  or  of  any  county,  city,  city 
and  county,  or  other  municipal  corporation  or  subdivision  thereof, 
and  every  deputy,  clerk,  or  servant  of  any  such  officer,  and  every 
officer,  director,  trustee,  clerk,  servant,  or  agent  of  any  associa- 
tion, society,  or  corporation  (public  or  privatel,  who  fraudu- 
lently appropriates  to  any  use  or  purpose  not  in  the  due  and 
lawful  execution  of  his  trust,  any  property  which  he  has  in  his 
possession  or  under  his  control  by  virtue  of  his  trust,  or  secretes 


§  504  PENAL    CODE.  421 

it  with  a  fraudulent  intent  to  appropriate  it  to  such  use  or  pur- 
pose, is  guilty  of  embezzlement. 

Amended  April  6,  1880 ;  amendts.  1880,  p.  8. 

G7  Cal.  274;  G9  Cal.   237;  82  Cal.  5S(i ;   lOG  Cal.   312; 
108  Cal.  541;  124  Cal.  453;  134  Cal.  303;  130  Cal.  451  ; 
143  Cal.  G7 ;  4  Cal.  App.  22G. 
See,  also.  Constitution  of  California,  art.  XII,  §3. 

Carrier,  when  guilty  of  embezzlement. 

§  505.  Everj'  carrier  or  other  person  having  under  his  control 
personal  property  for  the  purpose  of  transportation  for  hire,  who 
fraudulently  appropriates  it  to  any  use  or  purpose,  inconsistent 
with  the  safe-keeping  of  such  property  and  its  transportation 
according  to  his  trust,  is  guilty  of  embezzlement,  Avhether  he  has 
broken  the  package  in  wliich  such  property  is  contained,  or  has 
otlierwisc  separated  the  items  thereof,  or  not. 

Enacted  February  14,  1872. 

When  trustee,   banker,  etc.,  guilty  of  embezzlement. 

§  506.  Every  trustee,  banker,  merchant,  broker,  attorney, 
ngent,  assignee  in  trust,  executor,  administrator,  or  collector,  or 
person  otherwise  intrusted  with  or  having  in  his  control  prop- 
erty for  the  use  of  any  other  person,  who  fraudulently  appro- 
priates it  to  any  use  or  purpose  not  in  the  due  and  lawful 
execution  of  his  trust,  or  secret.es  it  with  a  fraudulent  intent  to 
appropriate  it  to  such  use  or  purpose,  and  any  contractor  who 
appropriates  money  paid  to  him  for  any  use  or  purpose,  other 
than  for  that  which  he  received  it,  is  guiltj^  of  embezzlement. 

Amended  March  22,  1907;  stats.  1007.  p.  802. 

09  Cal.  237;  IIG  Cal.  390;  13G  Cal.  443;  4  Cal.  App.  12.-.. 

CHAPTER  VII. 
EXTORTION. 

Sec.  525.     Officers  of  railroad  company  making  overcharges. 

Officers  of  railroad  company  making  overcharges. 

§  525.  Every  officer,  agent,  or  employee  of  a  railroad  com- 
pany, who  asks  or  receives  a  greater  sum  than  is  allowed  by  law 
for  the  carriage  of  passengers  or  freight,  is  guilty  of  a  misde- 
meanor. 

Enacted  February  14,  1872. 
145  Ciil.  G37. 

Kate  of  charges  ;  Civ.  C.  §  489. 


422  PENAL  couE.  §  548 

CHAPTER  XI. 

FRAUDULENT     DESTRUCTION     OF     PROPERTY     INSURED. 

Src.  54  S.     Burning  or  destroying  property  insured. 

.■)4  0.     Presenting  false  proofs  upon  policy  of  insurance. 

Burning  or  destroying  property  insured. 

§  548.  Every  person  who  willfully  burus  or  iu  uuy  other  man- 
ner injures  or  destroys  any  property  which  is  at  the  time  insured 
against  loss  or  damage  by  fire,  or  by  any  other  casualty,  with 
intent  to  defraud  or  prejudice  the  insurer,  whether  the  same  be 
the  property  of  or  in  possession  of  such  person,  or  of  any  other, 
is  punishable  by  imprisonment  in  the  state  prison  not  less  than 
one  nor  more  than  ten  years. 

Enacted  February  14,  1872. 
120  Cal.  1G9,  687. 

Presenting  false  proofs  upon  policy  of  insurance. 

§  549.  Every  per.son  who  presents  or  causes  to  be  presented 
any  false  or  fraudulent  claim,  or  any  proof  in  support  of  any 
such  claim,  upon  any  contract  of  insurance  for  the  payment  of 
any  loss,  or  who  prepares,  makes,  or  subscribes  any  account, 
certificate  of  survey,  afiidavit,  or  proof  of  loss,  or  other  book, 
paper,  or  writing,  with  intent  to  present  or  use  the  same,  or  to 
allow  it  to  be  presented  or  used  in  support  of  any  such  claim,  is 
punishable  by  imprisonment  in  the  state  prison  not  exceeding 
three  years,  or  by  fine  not  exceeding  one  thousand  dollars,  or  by 
both. 

Enacted  February  14,  1872. 
VI  Cal.  App.  Dec.  700. 

CHAPTER  XIII. 

FRAUDULENT     INSOLVENCIES     BY     CORPORATIONS     AND 

OTHER    FRAUDS    IN    THEIR    MANAGEMENT. 

Sec.  557.  Frauds  in  subscriptions  for  stock  of  corporations. 

558.  Frauds  in  organization  or  increasing  capital. 

559.  Unauthorized  use  of  names  in  prospectus. 
5G0.  Mi.sconduct  of  directors  of  .'Jtock  corporations. 
5G1.  Officer  of  savings  bank  overdrawing  accomit. 

562.  Receiving  depo.sits  in  insolvent  banks. 

563.  Frauds  in  keeping  accounts  in  books  of  corporations. 


§  557  PENAL    CODE.  423 

Sec.  o6-1.  Officer  of  corporation  publishing  false  reports. 

5  65.  Officer  must  permit  inspection  of  books. 

566.  Contracting  debt  of  railway. 

567.  Same. 

568.  Director  presumed  to  know  condition  of  corporation. 

569.  Director  present  at  meeting,  when  presumed  to  assent. 

570.  Director  when  absent,  when  presumed  to  assent. 

571.  Foreign,  doing  business  in  this  state. 

572.  Director  defined. 

Frauds   in  subscriptions  for  stock  of  corporations. 

§  557.  Every  person  who  signs  the  name  of  a  fictitious  person 
to  any  subscription  for  or  agreement  to  take  stock  in  any  cor- 
lioration  existing  or  proposed,  and  every  person  who  signs  to 
any  subscription  or  agreement  tlie  name  of  any  person,  knowing 
that  such  person  has  not  means  or  does  not  intend  in  good  faith 
to  comi)ly  with  all  the  terms  tliereof,  or  under  any  understand- 
ing or  agreement  that  the  terms  of  such  subscription  or  agree- 
ment are  not  to  be  complied  with  or  enforced,  is  guilty  of  a 
misdemeanor. 

Enacted  February  14,  1872. 

Subscription  to  articles  of  incorporation:  Civ.  C.  §202. 

Subscription  to  capital  stock,  in  certain  cases:  Civ.  C.  §293. 

Oath  to  subscription,  in  certain  cases  :  Civ.  C.  §  205. 

Frauds   in   organization  or  increasing  capital. 

§  558.  Every  officer,  agent,  or  clerk  of  any  corporation,  or  of 
any  persons  proposing  to  organize  a  corporation,  or  to  increase 
the  capital  stock  of  any  corporation,  who  knowingly  exhibits  any 
false,  forged,  or  altered  book,  paper,  voucher,  security,  or  other 
instrument  of  evidence,  to  any  public  officer  ot  lioard  authorized 
by  law  to  examine  the  organization  of  such  corporation,  or  to 
investigate  its  affairs,  or  to  be  allowed  an  increase  of  its  capital, 
with  intent  to  deceive  such  officer  or  board  in  respect  thereto,  is 
punishable  by  imprisonment  in  the  state  prison  not  less  than 
three  nor  more  than  ten  years. 

Enacted  February  14,  1872. 

False  certificates,  report,  or  notice — civil  liability  of  officers  : 
Civ.  C.  §  31  r>. 

Organization  of  corporations:  Civ.  C.  §283  ct  scq. 

KecoT-ds :  Civ.  C.  §§  377,  378. 

Increasing  capital  stock:  Civ.  C.  §  3.jO. 

See,  also.  Pen.  C.  §§  550,  504. 


424  PENAL    CODE.  §  559 

Unauthorized   use  of  names   in   prospectus. 

S  559.  Every  person  who,  without  being  authorized  so  to  do, 
subscribes  the  name  of  another  to  or  inserts  the  name  of  another 
in  any  prospectus,  circular,  or  other  advertisement  or  announce- 
ment of  any  corporation  or  joint  stocit  association,  existing  or 
intended  to  be  formed,  with  intent  to  permit  the  same  to  be 
published,  and  tliereby  to  lead  persons  to  believe  that  the  person 
whose  name  is  so  subscribed  is  an  officer,  agent,  member,  or 
l)roraoter  of  siicii  corporation  or  association,  is  guilty  of  a  mis- 
demeanor. 

Enacted  February  14,  1872. 

See,  also.  "Fraudulent  K'l'ports,"  statutes  at  large.  .\pp<Mulix. 

Persons  engaged  in  banking  nnisl  show  true  name:  Civ.  ('. 
§  582. 

See,  also,  I'en.  ('.  §  558. 

Misconduct   of   directors  of  stock   corporations. 

S  560.  I']\ery  dircf'lor  of  any  stock  corporation  who  concurs 
ill  any  vole  or  act  of  the  directors  of  such  cori)oi-a(iou  or  any  of 
I  hem,  hy  which  it  is  intended,  either — 

1.  'i'o  make  any  dividend,  except  from  the  surplus  profits  aris- 
ing from  tlie  business  of  the  corporation,  and  in  the  cases  and 
manner  alloAved  by  law  ;  or, 

2.  To  divide,  withdraw,  or  in  any  manner,  except  as  provided 
by  law,  pay  to  the  stockholders,  or  any  of  them,  any  part  of  the 
capital  stock  of  the  coi-poration ;  or, 

','>.  To  disc(Mi!il  or  receive  any  note-  or  oilier  evidence  of  del)t 
in  itaymcnt  of  any  inslaliment  aclnally  calli'd  in  and  r('(|uired  to 
be  paid,  or  willi  iIh'  inlint  to  |iro\idr  the  means  of  making  such 
payment ;  or, 

4.  To  receive  or  discount  any  note  or  other  evidence  of  liclil, 
with  the  intent  to  enable  any  slockholiler  to  withdraw  any  part 
of  the  money  paiii  in  by  him,  or  his  stock;  or, 

5.  To  receive  from  any  other  stock  cori)oration,  in  exchange 
for  the  shares,  notes,  bonds,  or  other  evidences  of  debt  of  their 
own  corporation,  shares  of  the  capital  stock  of  such  other  cor- 
poration, or  notes,  bonds,  or  other  evidences  of  debt  issued  by 
such  other  corporation  ; 

— is  guilty  of  a  misdemeanor. 
Enacted  February  14,  1872. 
72  Cal.  50 ;  11(J  Cal.  415. 


§  560  PENAL    CODE.  425 

Dividends  to  be  made  from  surplus  profits :  Civ.  C.  §  309. 

Bank  officer  advertising  or  making  statement  of  capital  stock 
without  showing  amount  paid  up  :  Civ.  C.  §  583a. 

Bank  officers  making  illegal  loans  or  investments :  Civ.  C. 
§  581. 

Officer  of  savings  bank  overdrawing  account. 

§561.  Every  officer,  agent,  teller,  or  clerk  of  any  savings 
bank,  who  knowingly  overdraws  his  account  with  such  bank,  and 
thereby  wrongfully  obtains  the  money,  note,  or  funds  of  .such 
bank,  is  guilty  of  a  misdemeanor. 

Enacted  February  ]4,  1872. 

Receiving   deposits  in   insolvent   banks. 

§  562.  Every  oiricer,  agent,  teller,  or  clerk  of  any  bank,  and 
every  individual  banker,  or  agent,  teller,  or  clerk  of  any  indi- 
vidual banker,  who  receives  any  deposits,  knowing  that  such 
bank,  or  association,  or  banker  is  insolvent,  is  guilty  of  a  mis- 
demeanor. 

Enacted  Februai'y  14,  1872. 

Frauds  in  keeping  accounts  in  books  of  corporations. 

§  563.  Every  director,  officer,  or  agent  of  any  corporation  or 
joint  stock  association,  who  knowingly  receives  or  possesses  him- 
self of  any  property  of  such  corporation  or  association,  otherwise 
than  in  payment  of-  a  just  demand,  and  who,  with  intent  to 
defraud,  omits  to  make,  or  to  cause  or  direct  to  be  made,  a  full 
and  true  entry  thereof  in  the  books  or  accounts  of  such  corpora- 
tion or  association,  and  every  director,  officer,  agent,  or  member 
of  any  corporation  or  joint  stock  association  who,  with  intent 
to  defraud,  destroys,  alters,  mutilates,  or  falsifies  any  of  the 
l)ooks,  papers,  writings,  or  securities  belonging  to  such  corpora- 
lion  or  association,  or  makes,  or  concurs  in  making,  any  false 
entries,  or  omits,  or  concurs  in  omitting  to  make  any  material 
entry  in  any  book  of  accounts,  or  other  record  or  document  kept 
by  such  corporation  or  association,  is  punishable  by  imprisonment 
in  the  state  prison  not  less  than  three  nor  moi'e  than  ten  years, 
or  by  imprisonment  in  a  county  jail  not  exceeding  one  year,  and 
a  fine  not  exceeding  five  hundred  dollars,  or  by  both  such  fine  and 
imprisonment. 

Enacted  February  14,  1872. 

53  Cal.  015:  103  Cal.  202;  VIII  Cal.  App.  Dec.  .-)22. 

See,  also,  Pen.  C.  §  558. 


426  ■  PENAL    CODE.  §  564 

Officer  of  corporation  publishing  false  reports. 

§  564.  Every  director,  officer,  or  agent  of  any  corporation  or 
joint  stock  association,  who  knowingly  concurs  in  making,  pub- 
lishing, or  posting  either  generally  or  privately  to  the  stock- 
holders or  other  persons,  any  written  report,  exhibit,  or  state- 
ment of  its  affairs  or  pecuniary  condition,  or  book  or  notice 
containing  any  material  statement  which  is  false,  or  any  untrue 
or  willfully  or  fraudulently  exaggerated  report,  prospectus, 
account,  statement  of  operations,  values,  business,  profits, 
expenditures,  or  prospects,  or  any  other  paper  or  document 
intended  to  produce  or  give,  or  having  a  tendency  to  produce 
or  give,  the  shares  of  stock  in  such  corporation  a  greater  value 
or  a  less  apparent  or  market  value  than  they  really  possess,  or 
refuses  to  make  any  book  or  post  any  notice  required  by  law,  in 
the  manner  required  by  law,  is  guilty  of  a  felony. 

Amended  March  21,  1905  ;  stats.  190o.  p.  G83. 
r.3  Cal.  648. 

Note. — §  564.  The  amendment  incorporates  in  the  section 
such  provisions  of  the  statute  of  1877-S.  page  695,  as  are  not 
already  sufficiently  expressed  therein.  The  statute,  however,  is 
limited  to  corporations  whose  stock  is  listed  on  the  stock  board 
or  exchange.  The  amendment  omits  this  limitation,  for  the 
reason  that  its  constitutionality  is  dovibtful. 

See,  also.  Appendix,  heading  "Fraudulent  Keports." 

See,  also.  Pen.  C.  §  558,  and  Civ.  C.  §  31(t, 

Officer  must  permit  inspection  of  books. 

§  565.  Every  officer  or  agent  of  any  corporation,  having  or 
keeping  an  office  within  this  state,  who  has  in  his  custody  or 
control  any  book,  paper,  or  document  of  such  corporation,  and 
who  refuses  to  give  to  a  stockholder  or  member  of  such  corpora- 
tion, lawfully  demanding,  during  office  hours,  to  inspect  or  take 
a  copy  of  the  same,  or  of  any  part  thereof,  a  reasonable  oppor- 
tunity so  to  do,  is  guilty  of  a  misdemeanor. 

Enacted  February  14,  1872. 

Records  of  corporation  :  Civ.  C.  §§  377,  378,  382,  383. 

Contracting  debt  of  railway. 

§  566.  Every  officer,  agent,  or  stockholder  of  any  railroad 
company,  who  knowingly  assents  to,  or  has  any  agency  in  con- 
tracting any  debt  by  or  on  behalf  of  such  company,  unauthorized 
by  a  special  law  for  the  purpose,  the  amount  of  which  debt,  with 
other  debts  of  the  company,  exceeds  its  available  means  for  the 


§  r)(!(;  PENAL    CODE.  427 

payment  of  its  debts,  iu  its  possession,  under  its  control,  and 
belonging  to  it  at  the  time  such  debt  is  contracted,  including 
its  bona  fide  and  available  stock  subscriptions,  and  exclusive  of 
its  real  estate,  is  guilty  of  a  misdemeanor. 

lOuacted  February  14,  1ST2. 

See.  nlso.  Civ.  C  §§  ;5(»!».  4.'">(;.  4.".7. 

Same. 

S  567.  The  last  section  does  not  affect  the  validity  of  a  (l(>I>t 
created  iu  violation  of  its  provisi(uis,  as  against  the  company. 

Enacted  February  14,  1872. 

Directors   presumed   to    know   condition    of   corporation. 

§  568.  Every  director  of  a  corporation  or  joint  stock  associa- 
tion is  deemed  to  possess  such  a  knowledge  of  the  affairs  of  his 
corporation  as  to  enable  him  to  determine  whether  any  act,  pro- 
ceeding, or  omission  of  its  directors  is  a  violation  of  this  chapter. 

Enacted  February  14,  1872. 

Director  present  at  meeting,  when   presumed  to  assent. 

S  569.  Every  director  of  a  corporation  or  joint  stock  associa- 
tion, who  is  present  at  a  meeting  of  the  directors  at  which  any 
act,  proceeding,  or  omission  of  such  directors,  in  violation  of  this 
chapter,  occurs,  is  deemed  to  have  concurred  therein,  unless  he 
at  the  time  causes,  or  in  writing  requires,  his  dissent  therefrom 
to  be  entered  in  the  minutes  of  the  directors. 

Enacted  February  14,  1872. 

See.  also.  Civ.  C.  §§  .309,  377. 

Director  when  absent,  when  presumed  to  assent. 

§  570.  Every  director  of  a  corporation  or  joint  stock  a.ssocia- 
tion,  although  not  present  at  a  meeting  of  the  directors  at  which 
any  act,  proceeding,  or  omission  of  such  directors,  in  violation 
of  this  chapter,  occurs,  is  deemed  to  have  concurred  therein,  if 
the  facts  constituting  such  violation  appear  on  the  records  or 
minutes  of  the  proceedings  of  the  board  of  directors,  and  he 
remains  a  director  of  the  same  company  for  six  months  there- 
after, and  does  not  within  that  time  cause,  or  in  writing  require, 
his  dissent  from  such  illegality  to  be  entered  in  the  minutes  of 
the  directors. 

Enacted  February  14,  1872. 


428  PENAL    CODE.  §  571 

Foreign,  doing  business  in  this  state. 

§  571.  It  is  no  defense  to  a  prosecution  for  a  violation  of  the 
provisions  of  this  chapter,  that  the  corporation  was  one  created 
by  the  laws  of  another  state,  government,  or  country,  if  it  was 
one  carrying  on  business  or  lieeping  an  office  therefor  within  this 
state. 

Enacted  February  14,  1872. 

Director   defined. 

§  572.  The  term  "director,"  as  used  in  this  chapter,  embraces 
any  of  the  persons  having  by  law  the  direction  or  management 
of  the  affairs  of  a  corporation,  by  whatever  name  such  persons 
are  described  in  its  charter  or  known  by  law. 

Enacted  February  14,  1872. 


TITLE  XV. 
Miscellaneous  Crimes. 

CHAPTER  I. 

VIOLATION    OF    THE    LAWS    FOR    THE    PRESERVATION    OF 
FISH    AND    GAIVIE. 

Sec.  627«.   Unlawful  carrying  of  deer  and  other  game. 
G27f*.    Limit  as   to   .shipment   of  certain   game. 
G29.      Screen  over  canal,   ditch,   mill  i-ace,   etc. 
Gol«.   Penalty  for  violation. 

637.     Fishways.     Fish  commissioners   to  examine  dams. 
637d.   Transportation  of  nongame  birds. 
637c.   Certificates  giving  right  to  take  birds. 

Unlaw/ful  carrying  of  deer  and  other  game. 

S  627(/.  Every  railroad  company,  express  company,  trans- 
jiortatiou  company,  or  other  common  carrier,  its  officers,  agents, 
and  servants,  and  every  other  person  who  transports,  carries  or 
takes  out  of  this  state,  or  who  receives  for  the  purpose  of  trans- 
porting from  this  state,  any  deer,  deerskin,  buck,  doe  or  fawn, 
or  any  quail,  partridge,  pheasant,  grouse,  or  sage  hen  or  prairie 
chicken,  dove,  wild  pigeon,  or  any  wild  duck,  rail,  snipe,  ibis, 
curlew,  plover,  or  other  shore  birds  (Limicolae)  except  for  the 
purpose  of  pi'opagation  or  scientific  purposes,  under  a  permit,  in 
writing,  first  obtained  from  the  board  of  fish  commissioners  of 


§  627a  PENAL  CODE.  429 

the  State  of  California,  or  who  trausports,  carries  or  takes  from 
tlie  state,  or  receives  for  the  purpose  of  ti-ansportation  from  the 
state,  the  carcass  of  any  such  animal  or  any  such  bird,  or  any 
part  of  the  carcass  of  any  such  animal  or  bird,  is  guilty  of  a 
misdemeanor. 

Amended  March  18,  1905 ;  stats.  1905.  p.  257. 

Limit  as  to  shipment  of  certain  game. 

§  6276.  Every  common  carrier  which  receives  for  shipment  or 
transportation  from,  or  which  ships  or  transports  for,  any  one 
person  during  any  one  calendar  day  more  than  twenty-five  wild 
ducks,  or  black  sea  brant,  or  more  than  twenty  quail,  snipe, 
curlew,  ibis,  plover,  i-ail,  or  other  shore  birds  (Limicolae),  or 
more  than  twenty  doves ;  or  which  ships  or  transports,  or  any 
person  offering  for  shipment  or  transportation  any  of  the  said 
birds,  or  any  deer,  or  any  deer  meat,  in  any  quantity,  unless  such 
birds,  or  deer,  or  deer  meat  are  at  all  times  in  open  view  and 
tagged  or  labeled  with  the  name  and  residence  of  the  person  by 
whom  they  are  shipped  ;  or  any  person  who  shall  at  the  time  of 
such  shipment  or  transportation  fail  to  furnish  to  any  such  com- 
mon carrier  a  tag  or  label  bearing  his  name,  residence  and  the 
exact  contents  of  the  package  offered  for  shipment  or  transporta- 
tion, is  guilty  of  a  misdemeanor  ;  provided,  that  nothing  in  this 
section  contained  shall  be  construed  to  permit  any  person  to  have 
in  his  possession  any  game  or  fish  contrary  to  the  provisions  of 
tills  chapter,  nor  to  permit  any  common  carrier  to  have  in  its  pos- 
session more  than  the  above  specified  number  of  said  birds  during 
any  one  calendar  day,  though  lawfully  received,  except  during  the 
shipment  or  transportation  thereof. 

Amended  March  22.  1009 ;  stats.  1009,  p.  G71 ;  in  effect  in 
sixty  days. 

Screen  over  canal,  ditch,  mill-race,  etc. 

S  629.  Any  person,  comiiany,  or  corpoi'allon,  owning.  In  whole 
or  In  part,  or  leasing,  operating,  or  liaving  in  charge  any  mill- 
race,  irrigating  ditch,  pipe,  flume,  or  canal,  taking  or  receiving 
its  waters  from  any  river,  creek,  stream,  or  lake  in  which  fish 
have  been  placed,  or  may  exist,  shall  put,  or  cause  to  be  placed 
and  maintained,  over  the  inlet  of  such  pipe,  flume,  ditch,  canal, 
or  mill-race,  a  screen  of  such  construction  and  fineness,  strength, 
and  quality  as  shall  prevent  nny  such  fisli  from  entering  such 
difcli,   pipe,    llunu",   cnnal,   or   nilll-racc,    when    I'cMiuired    to   do   .so 


430  PENAL    CODE.  §  629 

by  the  slate  board  of  fish  commissioners.  Any  person,  company, 
or  corporation  violating  any  of  the  provisions  of  this  section,  or 
who  shall  neglect  or  refuse  to  put  up  or  maintain  such  screen, 
shall  be  guilty  of  a  misdemeanor,  and,  upon  conviction  thereof, 
shall  be  punished  by  a  fine  of  not  less  than  twenty  dollars  or 
imprisoned  in  the  county  jail  of  the  county  in  which  the  con- 
viction shall  be  had  not  less  than  ten  days,  or  by  both  such  fine 
and  imprisonment ;  and  all  fines  imposed  and  collected  for  viola- 
tion of  any  of  the  provisions  of  this  section  shall  be  paid  into 
Iho  state  treasury  to  the  credit  of  the  "fish  commission  fund"; 
prori(Jc(J,  that  the  continuance  from  day  to  day  of  the  neglect 
or  refusal,  after  notification  in  writing  by  the  state  board  of  fish 
commissioners,  shall  constitute  a  separate  offense  for  each  day. 
Amended  March  18,  1905  ;  stats.  1905,  p.  187. 
77  Cal.  32. 

Penalty  for  violation. 

S  631«.  Every  person  found  guilty  of  a  violation  of  any  of 
the  provisions  of  sections  626,  626o.  626&,  626c,  G2Gd,  626f,  G26g, 
026/t,  626/,  626./,  626A-,  626m,  sections  627,  627o,  6276,  and 
section  631,  must  be  fined  in  a  sum  not  less  than  twenty-five  dol- 
lars nor  more  than  five  hundred  dollars,  or  imprisonment  in  the 
county  jail  of  the  county  in  which  the  conviction  shall  be  had, 
not  less  than  twenty-five  days  nor  more  than  one  hundred  and 
fifty  days,  or  by  both  sucli  fine  and  imprisonment. 

Amended  March  18,  1905;  stats.  1905,  p.  258. 

Fishways — Fish  commissioners  to  examine  dams. 

§  637.  It  shall  be  the  duty  of  the  state  board  of  fish  com- 
missioners to  examine,  from  time  to  time,  all  dams  and  artificial 
obstructions  in  all  rivers  and  streams  in  this  state  naturally  fre- 
quented by  salmon,  shad,  and  other  migratory  fish;  and  if,  in 
their  opinion,  there  is  not  free  passage  for  fish  over  or  around 
any  dam  or  artificial  obstruction,  to  notify  the  owners  or  occupants 
thereof  to  provide  the  same,  within  a  specified  time,  with  a 
durable  and  efticient  fishway,  of  such  form  and  capacity,  and  in 
such  location  as  shall  be  determined  l)y  the  fish  commissioners, 
or  persons  authorized  by  them,  and  such  fishway  must  be  com- 
pleted by  the  owners  or  occupants  of  such  dam  or  artificial 
obstruction  to  the  satisfaction  of  said  commissioners,  within  the 
time  specified ;  and  it  shall  be  incumbent  upon  the  owners  or 
occupanls  of  all  dams  or  artificial  oltstrucfions,  where  the  state 


§  637  PENAL    CODE.  431 

hoard  of  tisli  coinmissiouers  require  such  fishways  to  be  pro- 
vided, to  keep  the  same  in  repair  and  open  and  free  from  obstruc- 
tions to  the  passage  of  fish  at  all  times;  and  no  person  shall 
willfully  destroy,  injure,  or  obstruct  any  such  fishway,  or  at  any 
time  take  or  catch  any  salmon,  shad,  or  other  migratory  fish  or 
trout,  except  by  hook  and  line  within  three  hundred  feet  of  any 
fishway  required  by  the  state  board  of  fish  commissioners  to  be 
provided  and  kept  open,  or  at  any  time  take  or  catch  any  such 
fish  in  any  manner  within  fifty  feet  of  such  fishway  ;  and  every 
person  violating  any  of  the  provisions  of  this  act  is  guilty  of  a 
misdemeanor,  and  every  person  found  guilty  of  a  violation  of  any 
of  the  provisions  of  this  act  mu.st  be  fined  in  a  sum  not  less  than 
one  hundred  dollars,  or  imprisonment  in  the  county  jail  of  the 
county  in  which  the  conviction  shall  be  had  not  less  than  fifty 
days,  or  by  both  such  fine  and  imprisonment ;  and  all  fines 
imposed  and  collected  for  any  violations  of  the  provisions  of  this 
act  shall  be  paid  into  the  state  treasury  to  the  credit  of  the  "fish 
commission  fund." 

Amended  February  12.  1903;  stats.  1903,  p.  25. 
135  Cal.  470. 

Transportation  of  nongame  birds. 

§  637(/.  Every  i)erson  or  corporation  acting  as  a  common  car- 
rier, its  officers,  agents  or  servants,  who  shall  ship,  carry,  take 
or  transport  whether  within  or  beyond  the  confines  of  the  state 
any  resident  or  migratory  nongame  bird,  except  as  permitted  by 
this  code,  shall  be  guilty  of  a  misdemeanor. 

New  section;  added  April  IG,  1909;  stats.  1909,  p.  9.3(5;  in 
effect  in  sixty  days. 

Certificates  giving  right  to  take  birds. 

§  637c.  facetious  G37a,  637c,  and  037'/  shall  not  apply  to  any 
person  holding  a  certificate  giving  the  right  to  take  birds,  their 
nests  or  eggs  for  scientific  purposes  only,  as  hereinafter  provided. 
Certificates  may  be  granted  by  the  board  of  fish  commissioners 
to  any  properly  accredited  person  permitting  the  holder  thereof 
to  collect  birds,  their  nests  or  eggs  for  scientific  purposes  only. 
All  certificates  authorized  by  this  act  shall  expire  on  the  31st  day 
of  December  of  the  year  issued,  and  shall  not  be  transferable. 
On  proof  that  the  holder  of  such  certificate  has  killed  any  bird, 
or  has  taken  the  nest  or  eggs  of  any  bird  for  other  than  strictly 
scientific   purposes   his   certificate  shall   become   void,    the  birds, 


432  PENAL  CODE.  §  087 r- 

nests  01-  eggs  eollected  uuder  such  certilicule  shall  be  forfeiLed, 
and  shall  be  delivered  by  the  board  of  fish  commissioners  to  some 
public  museum  of  natural  history  in  the  state,  and  the  holder  of 
the  certificate  shall  be  guilty  of  a  misdemeanor. 

New  section;  added  April  16,  1909;  stats.  1909,  p.  936;  in 
effect  in  sixty  days. 

CHAPTER  II. 

OF  OTHER   AND    MISCELLANEOUS   OFFENSES. 

Sec.  G18.      Issuing  or  circulating  paper  monoy. 

Issuing  or  circulating  paper  money. 

S  648.  Every  person  who  makes,  issues,  or  i)uts  in  circula- 
tion any  bill,  check,  ticket,  certificate,  promissory  note,  or  the 
paper  of  any  bank,  to  circulate  as  money,  except  as  authorized 
by  the  laws  of  the  United  States,  for  the  first  offense  is  guilty 
of  a  misdemeanor,  and  for  each  and  every  subsequent  offense  is 
guilty  of  felony. 

Enacted  February  14,  1ST2. 

See  Civ.  C.  §3.56;  Constitution  of  California,  art.  XII.  §5. 


TITLE  XVI. 
General  Provisions. 

Sec.  R54«.   False  representation  as  to  quality  or  nieriLs  of  goods 
sold  or  advertised  ;  penalty. 
C79.     Coercion  or  compul.slon  of  persons  seeking  employment. 

False  representations  as  to  quality  or  merit  of  goods  sold  or 
advertised;  penalty. 

S  654r7.  Any  person,  linn  or  cori)oration  doing  business  in 
this  State  as  a  mcrchanl.  who  advertises  or  displays  any  brand 
of  goods  known  to  the  general  public  and  quotes  prices  in  con- 
nection therewith  as  an  inducement  to  attract  purchasers  to  the 
place  of  business  so  advertised,  who  shall  make  verbal  or  show 
printed  or  written  false  statements  regarding  the  quality  or 
merits  of  the  goods  advertised,  is  guilty  of  a  misdemeanor. 

Enacted  March  18,  190-5  ;  stats.  3905,  p.  22S. 

See,  also,  act  of  April  22,  1909,  statutes  at  larjic,  Aiijiendix, 
under  heading  "Franduli'iit    Reports."" 


8  r.T'.t  PKNAT,    CUDK.  4?,'.\ 

Coercion  or  compulsion  of  persons  seeking  employment. 

§  679.  Any  person  or  corporation  within  this  State,  or  agent 
or  officer  on  belialf  of  sucfi  person  or  corporation,  wlio  shafl 
hereafter  coerce  or  compel  any  person  or  persons  to  enter  into 
an  agreement,  either  written  or  verbal,  not  to  join  or  become  a 
member  of  any  labor  organization,  as  a  condition  of  such  person 
or  persons  securing  employment  or  continuing  in  the  employ- 
ment of  any  such  i)erson  or  corporation,  shall  be  guilty  of  a 
misdemeanor. 

Enacted  March  14,  1893 ;  stats.  1893,  p.  17G. 


PART  II. 

OF  CRIMINAL  PROCEDURE. 

TITLE  X. 

Miscellaneous  Proceedings. 

CHAPTER  IX. 
PROCEEDINGS  AGAINST  CORPORATIONS. 

Sec.  1390.  Summons  upon  information  against  corporation. 

1391.  Form  of  summons. 

1392.  When  and  how  served. 

1393.  Examination  of  the  charge. 

1394.  Certificate  of  magistrate  and  return  of  depositions. 

1395.  Grand  jury  to  investigate  if  there  is  sufficient  cause. 

1396.  Appearance  and  plea. 

1397.  Fine  on  conviction,   how  collected. 

Summons    upon    information    against   corporation. 

S  1390.  Upon  an  information  or  presentment  against  a  cor- 
poration, the  magistrate  must  issue  a  summons  signed  by  him. 
with  his  name  of  office,  requiring  the  corporation  to  appear 
before  him,  at  a  specified  time  and  place,  to  answer  the  charge, 
the  time  to  be  not  less  than  ten  days  after  the  issuing  of  the 
summons. 

Enacted  February  14,  1872. 

4  Cal.  App.  721  :  VII  Cal.  App.  Dec.  73.5. 

19— CL 


434  I'ENAI.  CODE.  S  1391 

r'orm    Of   summons. 

§  1391.  The  summous  must  be  substantially  iu  the  following 
form  : 

"County  of (as  the  case  may  be). 

"The  people  of  the  State  of  California  to  the  (naming  the  cor- 
poration) : 

"You  are  hereby  simmioned  lu  appear  before  me  at  (naming 
the  place),  on  (specifying  the  day  and  hour),  to  answer  a  charge 
made  against  you  upon  the  information  of  A.  B.  (or  the 
presentment  of  the  grand  jury  of  the  county,  as  the  case  may 
be),  for  (designating  the  offense  generally). 

"Dated  at  the  city   (or  township)  of  — ,  this  •  day 

of ,  eighteen  . 

"G.  H., 
"Justice  of  the  Peace"   (or  as  the  case  may  be). 

Enacted  February  14,  1872. 

See,  also,  Pen.  C.  §  1427. 

When  and   how  served. 

S  1392.  The  summous  must  be  served  at  least  five  days 
before  the  day  of  appearance  fixed  therein,  by  delivering  a  copy 
thereof  and  showing  the  original  to  the  president  or  other  head 
of  the  corporation,  or  to  the  secretary,  cashier,  or  managing 
agent  thereof. 

Enacted  February  14,  1872. 

Examination  of  the  charge. 

§  1393.  At  the  appointed  time  in  the  summons,  the  magis- 
trate must  proceed  to  investigate  the  charge  in  the  same  manner 
as  in  the  case  of  a  natural  person,  so  fai"  as  these  proceedings 
are  applicable. 

Enacted  February  14,  1872. 

Certificate  of  magistrate  and  return  of  depositions. 

§  1394.  After  hearing  the  proofs,  the  magistrate  must  cer- 
tify upon  the  depositions,  either  that  there  is  or  is  not  sufiicient 
cause  to  believe  the  corporation  guilty  of  the  offense  charged, 
and  must  return  the  deposition  and  certificate,  as  prescribed  in 
section  eight  hundred  and  eighty-three. 

Enacted  February  14,  1872. 

Grand  jury  to  investigate  if  there  is  sufficient  cause. 

§  1395.  If  the  magistrate  returns  a  certificate  that  there  is 
sufficient  cause  to  believe  the  corporation  guilty  of  the  offense 


§  1395  PENAL   CODE.  435 

charged,  the  grand  jury  may  proceed,  or  the  district  attorney 
tile  an  information  thereon,  as  in  case  of  a  natural  person  held 
to  answer. 

Amended  April  9,  1880 ;  stats.  1880.  p.  29. 

Appearancte  and  plea. 

S  1396.  If  an  indictment  is  found,  or  information  filed,  the 
corporation  may  nppear  by  counsel  to  answer  the  same.  If  it 
does  not  thus  appear,  a  plea  of  not  guilty  must  be  entered,  ;ind 
the  same  proceedings  had  thereon  as  in  other  cases. 

Amended  April  9,  1880;  stats.  1880,  p.  29. 
YII  Cal.  App.  Dec.  731,  735,  736. 

Fine  on  conviction,  how  collected. 

§  1397.  When  a  fine  is  imposed  upon  a  corporation  on  con- 
viction, it  may  be' collected  by  virtue  of  the  order  imposing  it, 
i)y  the  sheriff  of  the  county,  out  of  its  real  and  personal  prop- 
erty, in  the  same  manner  as  upon  an  execution  in  a  civil  action. 

Enacted  February  14,  1872. 

4  Cal.  App.  721 ;  VII  Cal.  App.  Dec.  735. 


TITLE  XI. 

Of  Proceedings  in  Justices'  and  Police  Courts,  and 
Appeals  to  Superior  Courts. 

CHAPTER   I. 
PROCEEDINGS    IN    JUSTICES'  AND   POLICE   COURTS. 

Sec.  1427.     Wlien  warrant  of  arrest  must  Issue.      Form   of  wai-- 
rant.      Summons  to  issue  in  case  of  corporation. 

When  warrant  of  arrest  must  issue — Form  of  warrant — Sum- 
mons to  issue  in  case  of  corporation. 

S  1427.  If  the  .iustice  of  the  peace,  or  police  judge,  is  sat- 
isfied therefrom  that  the  offense  complained  of  has  been  com- 
mitted, he  must  issue  a  warrant  of  arrest,  which  must  be 
substantially  in  the  following  form  : 

"County  of  

"The  People  of  the  State  of  California  to  any  Sheriff,  Con- 
stable, Marshal,  or  Policeman  in  this  State  ; 

"Complaint    upon    oath    having    been    this    day    made    before 


436  PKNAT.  oonK.  §  1427 

me,  (justice  of   the  peace  or  police  judge,   as  the  case 

may  be),  by  C.  D.,  that  the  offense  of  (designating  it  gen- 
erally) has  been  committed,  and  accusing  E.  F.  thereof;  you 
are  therefore  commanded  forthwith  to  arrest  the  above  named 
E.  F.  and  bring  him  before  me  forthwith,  at  (naming  the 
place). 

"Witness  my   hand   and   s<'al    at ,    this  day   of 

:   A.    I). . 

"A.  B." 

If  it  appears  that  the  offense  complained  of  has  been  com- 
mitted by  a  corporation,  no  warrant  of  arrest  need  issue,  but 
the  justice  of  the  peace  or  police  judge  must  issue  a  summons 
substantially  in  the  form  prescribed  in  section  thirteen  hundred 
and  ninety-one.  Such  summons  must  be  served  at  the  time 
and  in  the  manner  designated  in  section  thirteen  hundred  and 
ninety-two.  At  the  time  named  in  the  summons  the  corpora- 
tion may  appear  by  counsel  and  answer  the  complaint.  If  it 
does  not  appear,  a  plea  of  not  guilty  must  be  entered,  and  th(> 
same  proceedings  had  therein  as  in  other  cases. 

Amended  March  21,  1905;  stats.  1905,  p!  TOG. 

60  Cal.  105 ;  4  Cal.  App.  722 ;  7  Cal.  App.  7(J7. 

IsToTE. — §  1427.  The  changes  consist  in  the  matter  providing 
a  mode  for  compelling  a  corporation  to  appear  in  response  to  a 
complaint  accusing  it  of  a  misdemeanor. 


APPENDIX. 


STATUTES  AT  LARGE. 
LEGISLATION  PRIOR  TO  THE  CODES. 

FORMS  AND  PRECEDENTS. 
FEDERAL  CORPORATION  TAX  LAW. 


ADVERTISEMENTS. 

See  Fraudulent  Reports. 


AGRICULTURAL  ASSOCIATIONS. 

An  act  entitled  an  act  to  form  agricultural  districts,  to  provide 
for  formation  of  agricultural  associations  tlierein,  and  for 
the  management  and  control  of  tine  same  by  the  state,  and  to 
repeal  all  acts  and  parts  of  acts  in  conflict  with  this  act. 

Approved  March  31,  1897;  stats.  1897,  p.  304. 
Amended  March  15,  1901  ;  stats.  1901,  p.  304. 
Amended  April  19,  1909  ;  stats.  1909,  p.  994. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 


Sec.    1 


Agricultural  districts  defined. 

Representation   wliere    two   or   more   counties   lorm   one 

district. 
Formation  of  association. 
Officers  of  association. 
Appointments  by  governor. 
Organization  of  board  of  directors. 
Terms  of  office. 
Status  as  state  institution. 

Reports  to  governor  and  state  board  of  agriculture. 
Sale  of  real  estate. 

Election  for  issuance  of  capital  stock  as  a  corporation. 
Repeal  of  conflicting  acts. 
Time   act  shall   tal^e   effect. 


Agricultural  districts  defined. 

Skction  1.  The  several  counties  of  this  state  are  divided 
Mild  classiiied  into  agricuUurtil  districts  and  numbered  as  follows 
l<)  wit : 

'l^he  counties  of  Sau  Francisco  and  Alainedn  shall  constitute 
agriculturaJ  district  No.  ]. 

The  couniy  of  San  Joaquin  shall  constitute  agricultural  dis- 
trict No.  2. 


440  STATUTES    AT    LARGE. 

The  county  of  Butte  shall  constitute  agricultural  district  No.  B. 

The  counties  of  Sonoma  and  Marin  shall  constitute  agricul- 
tural district  No.  4. 

The  counties  of  San  Mateo  and  Santa  Clara  shall  constitute 
agricultural  district  No.  5. 

The  county  of  Los  Angeles  shall  constitute  agricultural  dis- 
trict No.  6. 

The  county  of  Monterey  shall  constitute  agricultural  district 
No.  7. 

The  county  of  El  Dorado  shall  constitute  agricultural  district 
No.  S. 

The  county  of  Humboldt  shall  constitute  agricultural  district 
No.  0. 

The  county  of  Siskiyou  shall  constitute  agricultural  district 
Xo.  ]0. 

The  counties  of  Plumas  and  Sierra  shall  constitute  agricultural 
district  No.  11 ;  provided,  that  the  first  fair  held  in  the  eleventh 
agricultural  district  after  the  passage  of  this  act  shall  be  held 
in  Sierra  county  ;  the  next  fair  in  Plumas  county,  and  thereafter 
said  counties  shall  so  alternate  in  holding  such  fairs. 

The  county  of  Lake  shall  constitute  agricultural  district 
No.  12. 

The  counties  of  Sutter  and  /uba  shall  constitute  agricultural 
district  No.  13. 

The  county  of  Santa  f'ruz  shall  constitute  agricultural  dis- 
trict No.  14. 

The  county  of  Kern  shall  constitute  agricultural  district 
No.  15. 

The  county  of  San  Luis  Obispo  shall  constitute  agricultural 
district  No.  16. 

The  county  of  Nevada  shall  constitute  agricultural  district 
No.  17. 

The  counties  of  Mono.  Inyo,  and  Alpine  shall  constitute  agri- 
cultural district  No.    18. 

All  that  i)ortion  of  Santa  P.arbara  county  lying  east  of  the 
fiaviota  and  south  of  the  Santa  Ynoj5  mountains,  shall  constitute 
agricultural  district  No.  10. 

The  county  of  Placei-  shall  constitute  agricultural  district 
No.  20. 

The  counties  of  Fivsno  and  Madera  shall  constitute  agricul- 
tural district  No.  21. 

The  county  of  San  Diego  shall  constitute  agricultural  district 
No.  22. 


AGRICITLTURAL  ASSOCIATIONS.  441 

'IMie  cuiiiilN  of  ('iinlni  Cosla  slinll  coiislil  iili-  .■liiririilliinil  dis- 
li-ict  No.  28. 

The  counties  of  'rulnrr  and  Kinss  sliall  .•niistitute  agricultural 
ilistrict  No.  24. 

The  oouiil.v  (if  Napa  slinll  coiislilul.'  a«rieullui-al  <listrirl 
No.  25. 

The  c-ouiily  <iL'  Aiiiadni-  sliall  c-uiisf itiilr  ai;rirultui-al  disli'icl 
No.  2G. 

The  counties  ot'  Shasta  and  Trinity  sliall  constitute  agricul- 
tural district  No.  '^7. 

The  counties  of  Sau  Bernardino  and  Itiverside  shall  constitute 
agricultural  district  No.  28. 

The  county  of  Tuolumne  shall  constitute  agricultural  district 
No.  29. 

The  county  of  Tehama  shall  constitute  agricultural  district 
No.  30. 

The  county  of  Ventura  shall  coiislitulc  agricultural  district 
No.  31. 

The  county  of  Orange  shall  const  it  ute  agricultural  district 
No.  32. 

The  county  of  San  Benito  shall  consliinic  agricultural  district 
No.  33. 

The  county  of  Modoc  shall  constitute  agricultural  district 
No.  34. 

The  counties  of  Merced  and  Mariposa  shall  constitute  agricul- 
tural district  No.  35. 

The  county  of  Solano  shall  constitute  agricultural  district 
No.  3t). 

All  thai  portion  of  Santa  Barbara  county  not  included  in 
agricultural  district  No.  19  shall  constitute  agricultural  district 
No.  37. 

The  county  of  Stanislaus  shall  constitute  agricultural  dislrici 
No.  38. 

The  county  of  Calaveras  shall  constitute  agricultural  district 
No.  39. 

The  counties  of  Yolo  and  Sacramento  shall  constitute  agricul- 
tural district  No.  40. 

The  county  of  Del  Norte  shall  consliinic  agricultural  district 
No.  41. 

The  county  of  Glenn  shall  constitute  agricultural  district 
No.  42. 

The  county  of  Ijassen  shall  constitute  agricultural  district 
No.  43. 


442  STATUTES   AT   LABGE. 

'I'he  county  of  Cohisii  shall  conslilule  agricultural  district 
No.  44. 

The  county  of  Mendocino  shall  constitute  agricultural  district 
No.  45. 

The  county  of  Imperial  shall  constitute  agricultural  district 
No.  4(;. 

|«ec.  1  amended  April  lU,  19()!>:  stats.  U)OJ».  p.  !t!>4  ;  in  effect 
immediately.] 

Representation  where  two  or  more  counties  form  one  district. 

Sec.  2.  Where  two  or  more  counties  shall  constitute  an  agri- 
cultural district,  each  county  shall  be  represented  in  the  district 
board  of  directors  by  at  least  two  resident  citizens,  as  directors 
in  said  board ;  'provided,  that  when  by  reason  of  the  formation 
of  a  new  agricultural  district,  a  director  of  one  district  becomes 
a  resident  of  another,  his  term  of  office  as  director  will  expire 
in  sixty  days  after  the  formation  of  the  new  agricultural  district. 
Whenever  the  board  of  directors  of  two  or  more  agricultural  dis- 
tricts shall,  by  a  majority  vote  of  each  board,  elect  to  unite,  the 
said  several  districts  may  associate  as  one  district,  and  hold  a 
fair  in  any  of  said  districts,  and  may  for  such  i)urpose  draw  the 
appropriation  for  all  of  said  districts,  and  expend  the  same  for 
said  fail". 

Formation  of  association. 

Sec.  3.  Any  fifty  or  more  persons,  representing  a  majority 
of  the  counties  within  any  one  of  the  districts  above  constituted, 
may  form  an  association,  for  the  improvement  of  the  material 
industries  within  such  district,  and  when  so  formed,  the  associa- 
tion  shall   be   known   and   designated   by   the   name   of  — 

agricultural  association,  and  by  such  name  and  style  shall  have 
perpetual  succession,  and  shall  have  power  and  authority  to 
contract  and  be  contracted  with,  to  sue  and  be  sued,  to  have  and 
use  a  common  seal,  to  purchase  and  hold  and  lease  real  estate, 
with  such  buildings  and  improvements  as  may  be  erected 
thereon,  and  may  sell  and  lease  and  dispose  of  the  same  at 
pleasure.  The  said  real  estate,  except  as  hereinafter  provided, 
shall  be  used  by  such  association  for  the  purpose  of  holding 
exhibitions  of  horses,  cattle,  and  other  stock,  and  of  the  agri- 
cultural, horticultural,  viticultural,  mechanical,  manufacturing, 
and  domestic  products  of  such  district,  with  a  view  to  the 
improvement  of  all  industries  in  the  same.  But  the  said  asso- 
ciation shall  have  the  power,  and  are  hereby  authorized,  to  sell 


AGRICULTURAL  ASSOCIATIONS.  443 

aud  convey  any  poitioii  of  the  real  estate  held  by  it,  by  whatever 
title  derived,  which  may  not  be  necessary  for  the  [iin'manent  nse 
of  said  association  for  the  purposes  aforesaiil. 

Officers  of  association. 

Sec.  4.  The  ofhcers  of  such  association  shall  consist  of  eight 
(lii-ectors,  who  shall  constitute  a  district  board  of  agriculture  for 

district  No.  ;  a  president,  who  shall  be  one  of  their  number, 

and  a  secretary  and  treasurer,  not  of  their  number. 

Appointments  by  governor. 

Sec.  5.  Within  ten  days  after  the  formation  of  any  new 
agricultural  association  within  any  of  the  districts  above  consti- 
tuted in  accordance  with  the  provisions  of  this  act,  and  notice 
of  such  formation  to  the  governor,  the  governor  shall  appoini 
eight  resident  citizens  of  such  district  as  members  of  a  district 
hoard  of  agriculture  for  said  district,  whose  term  of  ottice  shall 
he  four  years,  except  as  hereinafter  provided. 

Organization    of    board   of   directors. 

Sec.  ti.  Within  ten  days  after  their  appointment,  the  per- 
sons so  appointed  shall  qualify  as  required  by  the  constitution, 
and  shall  meet  at  a  place  within  the  district  and  organize  by  the 
election  of  one  of  their  number  as  president  of  the  board  and 
association,  who  shall  hold  said  office  of  president  one  year,  and 
until  his  successor  is  elected  ;  they  shall  also  elect  a  secretary 
and  treasurer. 

Terms  of  office. 

Sec.  7.  At  the  same  meeting  the  members  of  the  board  shall, 
l)y  lot  or  otherwise,  classify  themselves  into  four  classes  of  two 
members  each.  The  term  of  office  of  the  first  class  shall  expire 
at  the  end  of  the  first  fiscal  year ;  of  the  second  class,  of  the 
second  fiscal  year ;  of  the  third  class,  of  the  third  fiscal  year ; 
and  of  the  fourth  class,  at  the  end  of  the  full  term  of  four  years. 
The  fiscal  year  shall  be  from  December  first  to  December  first ; 
provided,  that  all  officers  of  agricultural  districts  now  in  office, 
under  any  law  heretofore  passed,  shall  hold  office  for  the  term 
for  which  they  were  appointed,  except  in  cases  specified  in  sec- 
tion two  of  this  act.  And  the  agricultural  associations  hereto- 
fore established  shall  be  continued  in  force,  and,  so  far  as  appli- 
cable, are  made  agricultural  associations  under  this  act. 


444  STATUTKS    AT    LARGE. 

Status  as  state  institution. 

Sec.  S.  Each  association  so  formed  and  organized  is  hereby 
declared,  and  shall  be  recognized,  a  state  institution,  and  the 
hoard  so  appointed  and  qualified  shall  have  the  exclusive  control 
and  management  of  such  institution,  for  and  in  the  name  of  the 
state,  and  shall  have  possession  and  care  of  all  the  property  of 
the  association,  and  shall  fix  the  terms  of  office  and  the  bonds 
of  the  secretary  and  treasurer,  and  determine  their  salaries  and 
duties.  They  shall  have  the  power  to  make  all  necessary  by-laws, 
rules,  and  regulations  for  the  government  of  the  association  and 
the  management  of  its  prudential  and  financial  affairs.  They 
shall  provide  for  an  annual  fair  or  exhibition  by  the  association 
of  all  the  industries  and  industrial  products  in  the  district,  at  ■ 
such  time  and  place  as  they  deem  advisable ;  provided,  that  the 
state  shall,  in  no  event,  be  liable  for  any  premium  offered  or 
award  made,  or  for  any  debt  contracted  by  any  district  board 
of  agriculture,  or  agricultural  association  ;  and  provided  further, 
that  nothing  in  this  section  shall  be  so  construed  as  in  any  way 
to  affect  or  modify  any  of  the  provisions  of  section  eleven. 

Reports  to  governor  and  state  board  of  agriculture. 

Sec.  0.  When  any  district  board  of  agrieultui-e  shall  have 
been  classified  and  oi-ganized  as  herein  provided,  the  secretary  of 
the  board  shall  report  such  classification  and  organization  to  the 
state  board  of  agriculture.  He  shall  also  report  the  same  to 
the  governor,  and  shall  report  any  vacancy  that  may  occur  in 
the  board  to  the  governor,  who  shall  fill  the  same,  by  appoint- 
ment, for  the  unexpired  term. 

It  shall  be  the  duty  of  each  district  association  formed  under 
this  act,  to  report  to  the  state  board  of  agriculture,  on  or 
before  January  first  of  each  year,  a  detailed  financial  statement, 
together  with  a  complete  statistical  review  of  the  agricultural 
resources  of  each  county  in  the  district,  for  the  year  ending 
December  thirty-first.  Said  review  to  contain  the  acreage  and 
yield  of  all  agricultural  productions  for  the  year  previous,  and 
such  other  data  as  may  be  asked  for  by  the  state  board  of 
agriculture  in  the  furtherance  of  its  duties. 

Sale  of  real   estate. 

Sec.  10.  Wheuever  any  such  association  shall  desire  to  sell 
any  portion  of  its  real  estate  not  needed  for  the  permanent  use 
of  the  association,   for  the  purposes  specified  in  section   three. 


AOlilClir.TTTRAL   ASSOCIATIONS.  445 

itud  such  ii'al  estate  be  held  hy  such  association  under  a  deed  or 
deeds  of  trust  conveying  the  said  hinds  in  trust,  to  he  held  in 
perpetuity  as  a  place,  for  holding  agricultural  exhibitions  or 
fairs,  or  for  other  permanent  purposes  of  such  association,  it 
shall  be  lawful  for  such  association  to  file  its  complaint  in  the 
superior  court  of  the  county  in  which  such  lands  are  situaled, 
setting  forth  the  nature  of  the  title  under  which  they  ar(»  held, 
and  that  it  is  the  desire  of  the  said  association  to  sell  and  dispose 
of  such  real  estate,  and  praying  for  judgment  authorizing  it  to 
sell  and  convey  the  same.  In  such  action  the  trustee  or  trustees 
in  such  deed  or  deeds,  or  the  survivor  or  survivors  of  them,  or 
the  heirs,  or  administrators,  or  executors  of  deceased  trustees, 
as  the  case  may  require,  shall  be  made  parties  defendant :  and 
upon  service  of  the  summons  upon  such  defendants,  personally 
or  by  publication,  or  upon  their  app<'arance,  the  court  shall 
have  full  jurisdiction  in  the  premises,  and  the  deed  executed 
under  and  in  pursuance  of  the  judgment  of  the  court  shall  1»' 
valid  and  effectual  to  convey  to  the  purchaser  the  title  of  said 
association,  and  that  of  all  of  its  iiredecessoi-s  in  title  made 
parties  to  the  suit. 

Election   for   issuance   of  capital   stock  as   a   corporation. 

Sec.  n.  Every  such  association  (U-gauized  and  existing  umler 
the  laws  of  the  state,  and  which  has  heretofore  issued  certifi- 
cates of  the  capital  stock  of  such  association,  and  which  cer- 
tificates last  mentioned  have  been  accepted  by  the  members  of 
such  association  in  lieu  of  certificates  of  membership  therein, 
may  elect  to  have  a  capital  stock,  and  may  issue  certificates  of 
stock  therefor,  in  the  same  manner  and  with  like  effect  as  cor- 
porations formed  under  the  provisions  of  chapter  one,  article 
one,  of  the  Civil  Code,  relating  to  the  formation  of  corporations. 
In  order  to  effect  such  change,  a  meeting  of  the  liolders  of  such 
alleged  certificates  of  capital  stock  may  be  called,  at  which  the 
holders  of  such  alleged  stock  shall  be  entitled  to  one  vote  for 
each  share  of  such  stock  appearing  in  their  names,  respectively, 
ui)on  the  books  of  such  association.  Upon  the  receipt  of  a 
written  application,  signed  by  the  holders  of  one  fourth  of  the 
shares  of  such  alleged  capital  stock  of  such  association,  request- 
ing him  so  to  do,  the  secretary  of  such  association  shall  give 
notice  of  the  time  and  place  of  holding  such  meeting,  by  publi- 
cation in  some  newspaper  printed  and  published  in  sucli  county, 
or  city  and  comity,  in  which  the  principal  place  of  business  of 


446  STATUTES    AT    LARGE. 

siK'Ii  nssocintioii  is  located,  a  I  least  onre  a  week  IVir  Ihree  suc- 
cessive weeks  next  prior  to  the  holding-  thei-euf.  Such  notice 
shall  state  that  the  object  of  the  meeting  is,  (1)  to  determine 
whether  such  corporation  elects  to  have  a  capital  stock  as  pro- 
vided by  this  act;  (2)  the  amount  of  such  capital  stock,  and 
(3)  the  number  of  shares  into  which  the  same  shall  be  divided. 
At  such  meeting,  should  (he  holders  of  a  majority  of  the  shares 
of  such  alleged  capital  stock  vote  in  favor  of  having  a  capital 
stock,  and  fix  the  amount  thereof,  and  the  number  of  shares  into 
which  it  shall  be  divided,  then  such  corporation  shall  issue  cer- 
tificates of  capital  stock  to  tlae  amount  fixed  at  such  meeting, 
divided  into  the  number  of  shares  provided  by  said  meeting,  to 
the  holders  of  such  alleged  capital  stock,  in  the  same  proportion 
as  such  alleged  stock  appears  in  the  names  of  such  holders, 
respectively,  upon  the  books  of  such  association.  A  copy  of  the 
notice  calling  such  meeting,  the  affidavit  of  publication  thereof, 
the  proceedings  of  such  meeting,  the  amount  of  capital  stock 
voted,  luimber  of  shares  into  which  the  capital  stock  was  divided, 
and  to  whom  assigned,  duly  certified  by  the  chairman  of  such 
meeting,  and  the  secretary  of  such  association,  under  the  seal 
thereof,  must  be  filed  with  the  secretary  of  state  and  the  clerk 
of  the  county  where  such  association  has  its  principal  place  of 
business.  Thereafter  such  association  shall  be  possessed  of  all 
rights  and  powers,  and  shall  be  subject  to  all  the  obligations  and 
restrictions,  as  if  it  had  been  originally  created  a  corporation 
with  a  capital  stock,  including  the  right  to  elect  a  board  of 
directors  authorized  to  exercise  such  control  of  all  the  property 
of  such  association,  as  provided  in  chapters  one,  two,  three,  aud 
four  of  the  Civil  Code,  relating  to  corporations;  provided,  such 
association  shall  have  no  authority  to  sell  any  portion  of  the  real 
estate  owned  and  held  by  it,  by  whatever  title  derived,  which 
may  be  necessary  for  the  permanent  use  of  such  association,  for 
the  purposes  aforesaid  ;  and  provided  further,  that  in  the  event 
that  such  association,  after  the  issuance  of  a  capital  stock  as 
aforesaid,  shall  be  offered  aid  at  any  time  from  the  state  by 
appropriation,  for  the  purpose  of  holding  an  annual  district  fair, 
and  such  association,  by  a  vote  of  the  board  of  directors,  elected 
as  hereinafter  provided,  adopts  a  resolution  accepting  such  appro- 
priation, then  and  in  that  event  said  annual  fair  shall  be  held 
under  the  control  and  management  of  the  district  boai-d  of  agri- 
cultui-e  of  such  district;  but  said  district  board  of  agriculture 
shall  have  no  other  authority,  control,  or  management  of  or  over 


AGRICULTURAL  ASSOCIATIONS.  447 

(he  properly  of  such  association,  and  the  authority  which  it  may 
exercise  over  said  property  shall  continue  only  during  the  time 
occupied  in  holding  the  said  district  fair,  which  time  shall  not 
extend  over  more  than  one  week  annually. 

When  any  corporation  has  elected  to  issue  capital  stock  under 
this  act,  the  president  thereof  shall,  within  ten  days  after  filing 
with  the  secretary  of  state  of  the  certificate  hereinbefore  i>ro- 
vided,  call  a  meeting  of  the  stockholders  of  such  corporation,  for 
the  purpose  of  electing  a  board  of  directors  of  such  corporation, 
which  board  of  directors  shall  hold  their  office  until  their  suc- 
cessors are  elected  and  qualified,  and  thereafter  a  board  of 
directors  of  such  corporation  shall  be  elected  annually,  on  the 
day  of  the  month  upon  which  the  election  of  said  first  board  of 
directors  elected  as  aforesaid  is  held,  unless  a  different  day  for 
holding  such  election  is  fixed  by  the  board  of  directors  of  such 
corporation,  by  its  by-laws,  properly  adopted. 

Repeal    of   conflicting    acts. 

Sec.  32.  All  acts  or  parts  of  acts  in  confiict  with  this  act  are 
hereby  repealed. 

Time  act  shall  take  effect. 

Sec.  13.  This  act  shall  take  effect  from  and  after  its  passage, 
l.^il  Cal.  804  ;  XXXVI  Cal.  Dec.  112. 

(See,  also,  act  of  April  17,  1909,  for  formation  of  agricultural 
districts,  etc.,  post.) 


An  act  to  form  agricultural  districts,  to  provide  for  the  forma- 
tion, organization  and  powers,  of  agricultural  associations 
therein  and  for  the  management  and  control  of  the  same  by 
the  state,  and  repealing  all  acts  and  portions  of  acts  in  con- 
flict with  this  act. 

Approved  April  17,  1909;  stats.  1909,  p.  979. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assemhly,  do  enact  as  follows: 

Agricultural  districts,  numbers  of. 

Section  1.  The  several  counties  of  this  state  are  divided  and 
classified  into  agricultural  districts,  and  numbered  as  follows, 
to  wit : 

The  counties  of  San  Francisco  and  Alameda  shall  constitute 
agricultural  district  No.   1. 


14(S  STATUTES    AT    T.ARGE. 

'I'lic  couiily  of  San  Joaquin  shall  coiislidile  agrit-iill  ural  ilis- 
li'iol  No.  -. 

The  couuty  of  Butte  shall  constitute  tij;riciilUiral  distriLrt  No.  3. 

The  counties  of  Sononaa  and  Marin  shall  constitute  agrioul- 
liiial  district  No.  4. 

The  counties  of  San  Maleo  and  Santa  Clara  shall  .•onsliliile 
agricultural  district  No.  .^». 

The  couuty  of  Los  Angeles  shall  constitute  agricultural  tlis- 
trict  No.  C. 

The  county  of  Monterey  shall  constitute  agricultural  district 
No.  7. 

The  county  of  El  Dorado  shall  constitute  agricultural  district 
No.  8. 

The  county  of  Humboldt  shall  constitute  agricultural  d'strict 
No.  [). 

The  county  of  Siskiyou  shall  ronstilule  agi-icult  ural  district 
No.   10. 

The  counties  of  I'lumas  and  Sierra  shall  coustitute  agricul- 
tural district  No.  11;  provided,  that  the  lirst  fair  held  ui  the 
eleventh  agricultural  district  after  the  passage  of  this  act  shall 
he  held  in  Sierra  county;  the  next  fair  in  Plumas  county. 
and  thereafter  said  counties  shall  so  alternate  in  lu)lding  such 
fairs. 

The  counties  of  Lake  aiul  Mendocino  shall  constitute  agricul- 
tural district  No.  12. 

The  counties  of  Sutter  and  Yuba  shall  constitute  agricultural 
district  No.  l.'i. 

The  county  of  Sanla  Cru/.  shall  constitute  agricultural  dis- 
trict No.  14. 

The  county  of  Kern  shall  constitute  agricultural  district 
No.  15. 

The  county  of  San    I>uis  Obispo  shall  constitute  agricultural 

district  No.  16. 

The  county  of  Nevada  shall  constitute  agricultural  district 
.No.  17. 

The  counties  of  Mono,  Inyo,  and  Alpine  shall  constitute  agri- 
cultural district  No.  18. 

All  that  portion  of  Santa  Barbara  county  lying  east  of  the 
(iaviota  and  south  of  the  Santa  Ynez  mountains,  shall  constitute 
agricultural  district  No.  l'.>. 

The  couuty  of  I'lacer  shall  constitute  agricultural  district 
No.  20. 


AGRICULTURAL   ASSOCIATIONS.  449 

The  counties  of  Fresno  and  Madera  shall  constitute  agricul- 
tural district  No.  21. 

The  county  of  San  Diego  shall  constitute  agricultural  district 
No.  22. 

The  county  of  Contra  Costa  shall  constitute  agricultural  dis- 
trict No.  23. 

The  counties  of  Tulare  and  Kings  shall  constitute  agricultural 
district  No.  24. 

The  county  of  Napa  shall  constitute  agricultural  district 
Xo.  25. 

The  county  of  Amador  shall  constitute  agricultural  district 
No.  26. 

The  counties  of  Shasta  and  Trinity  shall  constitute  agricul- 
tural district  No.  27. 

The  counties  of  San  Bernardino  and  Riverside  shall  consti- 
tute agricultural  district  No.  28. 

The  county  of  Tuolumne  shall  constitute  agricultural  district 
No.  20. 

The  county  of  Tehama  shall  constitute  agricultural  district 
No.  30. 

The  county  of  Ventura  shall  constitute  agricultural  district 
No.  31. 

The  county  of  Orange  shall  constitute  agricultural  district 
Xo.  32. 

The  couuly  of  San  Benito  shall  constitute  agricultural  district 
No.  33. 

The  county  of  ATodoc  shall  constitute  agricultural  district 
Xo.  34. 

The  counties  of  i\Iei-ccd  and  Mariposa  shall  constitute  agri- 
cultural district  No.  35. 

The  county  of  Solano  shall  constitute  agricultural  district 
No.  36. 

All  that  portion  of  Santa  Barbara  county  not  included  in 
agricultural  district  No.  10  shall  constitute  agricultural  district 
i\o.  37. 

The  county  of  Stanislaus  shall  constitute  agrirultural  district 
No.  38. 

The  county  of  Calaveras  shall  constitute  agricultural  district 
No.  39. 

The  county  of  Yolo  shall  constitute  agricultural  district 
Xo.  40. 

The  county  of  Del  Norte  shall  constitute  agricultural  district 
No.  41. 


450 


STATUTES    AT    LARGE. 


The  county  of  Glenn  shall  constitute  agricultural  district 
No.  42. 

The  county  of  Lassen  shall  constitute  agricultural  district 
No.  43. 

The  county  of  Colusa  shall  constitute  agricultural  district 
No.  44. 

The  county  of  Imperial  shall  constitute  agricultural  district 
No.  45. 

Formation  of  associations. 

Sec.  2.  Any  fifty  or  more  persons  residents  of  a  majority  of 
the  counties  embraced  within  any  of  the  above  districts  may 
form  an  association  for  the  purpose  of  holding  fairs,  exposi- 
tions and  exhibitions  of  all  of  the  industries  and  industrial 
enterprises,  resources  and  products  of  every  kind  or  nature  of 
the  state  with  a  view  of  improving,  exploiting,  encouraging  and 
stimulating  the  same. 

Officers. 

Sec.  3.  The  officers  of  such  association  shall  consist  of  eight 
directors  to  be  appointed  by  the  governor  of  the  State  of  Cali- 
fornia who  shall  constitute  a  district  board  of  agriculture  for 
.said  district ;  provided,  however,  where  two  or  more  counties 
shall  constitute  an  agricultural  district,  each  county  shall  be 
represented  in  the  district  board  of  directors  by  at  least  two 
resident  citizens,  as  directors  in  said  board ;  provided,  that 
when  by  reason  of  the  formation  of  a  new  agricultural  district, 
a  director  of  one  district  becomes  a  resident  of  another,  his  term 
of  office  as  director  will  expire  in  sixty  days  after  the  formation 
of  the  new  agricultural  district. 


Appointment  of  directors. 

Sec.  4.  After  the  formation  of  an  agricultural  association 
within  any  of  the  districts  above  constituted  in  accordance  with 
the  provisions  of  this  act,  and  notice  of  such  formation  to  the 
governor,  the  governor  shall  appoint  eight  resi<lent  citizens  of 
such  district  as  members  of  a  district  board  of  agriculture  for 
said  district  whose  term  of  office  shall  be  four  years,  except  as 
hereinafter  provided ;  and  thereafter  there  shall  be  two  members 
of  said  board  appointed  in  the  same  manner  every  year  whose 
term  of  office  shall  continue  four  years,  and  until  their  suc- 
cessors are  appointed  and  qualified. 


AGRICULTURAL   ASSOCIATIONS.  451 

Terms  of  office. 

Sec.  5.  Within  ten  days  after  their  appointment  the  mem- 
bers of  the  board  shall,  by  lot  or  otherwise  classify  themselves 
into  four  classes  of  two  members  each.  The  term  of  office  of 
the  first  class  shall  expire  at  the  end  of  the  first  fiscal  year,  the 
second  class  at  the  end  of  the  second  fiscal  year,  the  third  class 
at  the  end  of  the  third  fiscal  year  and  the  fourth  class  at  the 
end  of  the  fourth  fiscal  year ;  provided,  that  all  ofiicers  of  agri- 
cultural districts  now  in  office,  under  any  law  heretofore  passed, 
shall  hold  office  for  the  term  for  which  they  were  appointed, 
except  in  cases  specified  in  section  3  of  this  act.  And  the  agri- 
cultural associations  heretofore  established  shall  be  continued  in 
force,  and  are  made  agricultural  associations  under  this  act. 

Organization. 

Sec.  6.  The  fiscal  year  shall  be  from  December  1st  to  Decem- 
ber 1st  and  the  persons  so  appointed  shall  qualify  as  required 
by  the  constitution,  and  shall  meet  at  a  place  within  the  district 
and  organize  by  the  election  of  one  of  their  number  as  president 
of  the  board,  who  shall  hold  said  office  of  president  one  year 
and  until  his  successor  is  elected ;  they  shall  also  elect  a  secre- 
tary and  treasurer  not  of  their  number. 

Name  of  association,  and  powers. 

Sec.  7.  Each  association  so  formed  and  organized  is  hereby 
declared  and  shall  be  recognized  as  a  state  institution,  and  shall 

i)e  known  and  designated  by  the  name  of 

district  agricultural  association,  and  by  such 

name  and  style  shall  have  perpetual  succession  and  shall  have 
power  to  contract,  to  sue  and  to  be  sued,  to  have  a  seal,  to  pur- 
chase, to  hold  and  lease  real  estate  and  personal  property,  and 
may  sell,  lease,  beautify,  improve  and  dispose  of  the  same,  and 
do  any  and  all  acts  and  things  necessary  to  carry  out  the 
objects  and  purposes  for  which  said  associations  are  formed ; 
and  the  l)oard  so  appointed  and  qualified  shall  have  the  exclusive 
control  and  management  of  such  institution,  for  and  in  the  name 
of  the  state,  and  shall  liave  possession  and  care  of  all  the  property 
of  the  association  and  shall  fix  the  term  of  ofiice  and  the  bonds  of 
(he  secretary  and  treasurer  and  determine  their  salaries  and 
(luti(>s.  They  shall  have  the  power  to  make  all  necessary  by- 
laws, rules  and  regulations  for  the  government  of  the  association 
and  (he  management  of  its  prudential  and  financial  alTairs. 
They   may   provide   for  a   fair,   exposition   or   exhibition   by    the 


452  STATUTES    AT    LARGE. 

association  of  all  iudustrios  and  industrial  products  in  the  dis- 
trict or  state,  at  such  time  and  place  as  they  deem  advisable ; 
provided,  that  tlie  state,  shall  in  no  event,  be  liable  for  any 
premium  offered  or  award  made,  or  on  account  of  any  premium 
offered  or  award  made,  or  on  account  of  any  contract  made  by 
any  district  board  of  agriculture  or  agricultural  association ; 
provided,  however,  that  any  such  agricultural  association  having 
a  speedway  or  race  course  upon  any  lands  owned  by  it,  or  under 
its  control,  shall  maintain  the  same  for  the  purpose  of  holding 
speed  contests  and  training  and  speeding  horses  thereon. 

Advances  from  state  association. 

Sec.  S.  Wlienever  such  association  shall  liave  been  formed 
within  any  of  the  districts  provided  for,  and  it  is  proposed  to 
hold  an  agricultural  fair  in  said  district,  the  secretary  of  the 
board  of  directors  of  the  district,  shall  notify  the  state  board 
of  agriculture  of  the  said  intention,  and  shall  also  forward  to 
the  board  of  agriculture  a  list  of  the  articles  upon  which  pre- 
miums are  to  be  paid  and  the  amount  upon  each  item,  and  the 
said  board  shall  have  the  power  to  advance  to  said  association 
a  sum  not  exceeding  live  thousand  dollars  ($5,000)  to  pay  said 
premiums  out  of  any  money  that  may  have  been  appropriated 
to  the  said  state  agricultural  society  for  that  purpose,  and 
which  may  at  the  time  be  available  ;  provided,  however,  that  no 
one  district  shall  i-eceive  such  aid  for  more  than  ()ne  fair  in  any 
one  year. 

State  aid. 

Sec.  9.  The  fairs  or  exhibitions  to  be  given  by  the  district 
agricultural  association  shall  be  held  at  such  place  or  places 
within  such  districts,  as  the  board  of  directors  of  the  said  dis- 
trict may  select.  But  only  one  of  such  district  fairs  shall 
receive  state  aid  in  any  district  during  any  given  year,  and 
the  money  provided  by  the  state  as  premium  money  shall  be 
applied  to  exhibits  at  this  one  fair ;  provided,  hoivevcr,  when- 
ever the  board  of  directors  of  two  or  more  agricultural  districts 
shall,  by  a  majority  vote  of  each  board,  elect  to  unite,  the  sev- 
eral districts  may  associate  and  combine  as  one  district,  and 
hold  a  fair  in  any  of  said  districts  that  may  be  agreed  on  by 
the  ijoards  of  directors  of  said  associations  so  combining,  and 
may  for  such  purpose  draw  the  approi)rlation  for  all  the  said 
districts,  and  expend  the  same  for  said  fair. 


AflRrOTTT.TTTR AT-   ASSOOTATroNS.  ITu', 

Reports  to  state  association. 

Sec.  10.  The  directors  of  such  agricultural  district  herein 
created  shall  each  year  make  a  full  aud  complete  report  of  all 
transactions  of  the  said  a.ssociation  to  the  state  board  of  agri- 
culture. 

Repeai  of  conflicting  acts. 

Sec.  11.  All  acts  or  parts  of  acts  in  conflict  with  this  act 
are  hereby  repealed. 

Time  act  shail  take  effect. 

Seo.  12.  This  net  shall  take  effect  immediately  from  and 
after  its  passage. 

(See,  also,  an  act  to  form  agricultural  districts,  etc.,  approved 
March  31,  1897,  <iiitr.) 


An  act  authorizing  district  agricultural  associations  organized 
under  tine  laws  of  the  State  of  California,  to  lease  lands 
owned,  managed  or  controlled,  in  trust  or  otherwise,  to 
municipal  corporations,  counties  or  cities  and  counties,  in 
which  such  lands  are  situated,  and  repealing  all  acts  and 
parts  of  acts  in  conflict  herewith. 

Approved  April  22.  1909;  .stats.  1909,  p.  1082. 

The  people  of  the  State  of  California,  represented  in  senate  and 
asseiiiblii,  do  enact  as  follows: 

May  lease  lands  not  needed. 

Section  1.  Any  district  agricultural  association  organized, 
or  hereafter  organized  under  the  laws  of  the  State  of  California, 
is  hereby  authorized  and  empowered  to  lea.se  lands  owned,  man- 
aged or  controlled  by  said  association,  whether  in  trust  or  other- 
wise, not  needed  for  the  permanent  use  of  said  association,  to 
any  municipal  corporation,  county,  or  city  and  county,  in  which 
said  lands  are  located,  for  a  period  not  to  exceed  fifty  years,  for 
purposes  not  inconsistent  with  the  objects  and  purposes  for 
which  said  association  is  formed  and  for  which  said  lands  are 
held,  owned,  or  controlled  by  it. 

Repeal  of  conflicting  acts. 

Sec.  2.  All  acts  and  parts  of  acts  in  conflict  with  this  act 
are  hereby  repealed. 

Time  act  shall  take  effect. 

Sec.  3.     This  act  shall  take  effect  immediately. 


454  STATUTES    AT   LARGE. 

ANIMALS. 

An  act   for  the   more  effectual    prevention   of   cruelty  to  animals. 

Approved  March  20,  1874  ;  stats.  1873-4,  p.  499.  Amended  and 
§§  20  to  22  added,  1901,  p.  285;  amended  1903,  p.  69;  1905. 
p.  498  (date  of  act  not  mentioned  in  title).  §§  1  to  5  (as 
amended  1901,  p.  285),  14  (a.s  amended  1903,  p.  69),  and  15 
superceded  by  Civ.  C.  §§  607,  607«,  QOlf,  a.s  adopted  in  1905  ;  §  6 
of  the  act  (as  amended  in  1901)  superseded  by  Pen.  C.  §  597,  as 
amended  in  1905  ;  §§  7,  8,  9,  11,  12,  and  13  (as  amended  in 
1901,  superseded  by  Pen.  C.  §§  597a  to  597f,  as  adopted  in  1905  ; 
§  10  (as  amended  in  1901)  sujicrseded  by  Pen.  C.  §  599«,  as 
adopted  in  1905  ;  §§  16,  17  superseded  by  Pen  C.  §§  599b,  599c. 
as  adopted  in  1905;  §§  20,  21  (added  1901,  p.  287)  superseded 
by  Pen.  C.  §§  599d,  599e,  as  adopted  in  1905  ;  §  22  (added  1901, 
p.  287)  superseded  by  Code  Civ.  Proc.  §  1208,  as  adopted  in  1905. 


An    act    to    prevent    the    spread    of    contagious    diseases    among 
animals. 

Approved  March  20,   1905;   stats.   1905,   p.   317. 

The  people  of  I  lie  State  of  California,  represented  in  stnate  and 
assembly,  do  enact  as  follows: 

Animals  dead  from  contagious  disease  to  be  immediately  buried 
or  cremated. 
Section  1.  Any  iierson  having  the  care,  custody  or  control 
of  any  animal  that  dies  from  tuberculosis,  glanders,  farcy,  Texas 
fever,  or  other  infectious  di.sease,  shall  immediately  upon  the 
death  of  such  animal  cremate  or  bury  the  same,  or  cause  the 
same  to  be  cremated  or  buried. 

Transportation  by  common  carrier. 

Sec.  2.  Any  common  carrier  of  persons  or  freight  that  shall 
transport  any  animal  suffering  with  or  that  has  died  from  the 
diseases,  or  any  of  them,  mentioned  in  section  1  of  this  act  a 
greater  distance  than  is  necessary  to  transport  such  animal  to 
the  nearest  crematory,  shall  be  deemed  guilty  of  a  misdemeanor. 

Not  to  be  used  for  food. 

Sec.  8.  No  animal  that  has  died  of  any  of  the  diseases 
named   in   section  one  of   this  act,  shall   be  sold,   used   or  per- 


ANIMALS. 


455 


mitted  to  be  used  for  the  food  of  humaa  beiugs  or  sold,  used  or 
permitted  to  be  used  for  the  food  of  any  domestic  animal  or 
fowl. 

Penalty  for  violation. 

Sec.  4.  Any  person,  tirm  or  corporation  that  shall  violate 
any  of  the  provisions  of  this  act  shall  be  deemed  guilty  of  a 
misdemeanor,  and  upon  a  conviction  thereof  shall  be  punished 
by  a  fine  of  not  less  than  ^50  and  not  more  than  $500,  or  by 
imprisonment  in  the  county  jail  for  a  term  not  exceeding  180 
days,  or  by  both  such  fine  and  imprisonment. 

Time  act  shall  take  effect. 

Sec.  5.     This  act  shall  take  effect  immediately. 


ANTI-TRUST. 

See  Comiinations. 


BANKS  AND  BANKING. 

See,  also,  Executors. 

An  act  providing  for  the  dissolution  and  winding  up  of  savings 
banks,  trust  companies,  and  banks  of  deposit,  and  providing 
for  the  disposition  of  all  funds  deposited  therein  and  not 
claimed  within  five  years  after  such  banks  have  ceased  to  do 
business,  or  after  the  commencement  of  proceedings  to  dis- 
solve. 

Approved  Mareli  31,  1891;  stats.  18'.)1,  p.  271. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Right  to  dissolve  savings  banks,  etc. 

Section  1.  That  any  savings  bank,  or  tru.st  company,  or 
bank  of  deposit,  heretofore  created,  or  which  may  be  hereafter 
created,  shall  have  the  right,  on  application  of  the  stockholders 
or  members  to  the  superior  court  of  the  county  wherein  its  prin- 
cipal place  of  business  i.s  situated,  to  dissolve  said  corporation 
in  the  manner  provided  for  in  title  six,  part  three  of  the  Code  of 
Civil  Procedure. 


456  STATUTES    AT   LARGE. 

"Dissolved   savings   bank   fund"   created. 

Sec.  2.  It  is  hereby  made  the  duty  of  every  person  or  cor- 
poration holding  funds  of  any  savings  bank,  or  trust  company, 
or  bank  of  deposit,  at  the  end  of  five  years  from  and  after  such 
bank  has  ceased  to  receive  deposits,  or  do  business,  to  pay  the 
same  into  the  state  treasury,  which  money  shall  be  held  in  the 
state  treasury  in  n  fund  which  is  hereby  designated  a.s  "the 
dissolved  savings  bank  fund"  ;  and  at  the  same  time  it  shall  be 
the  duty  of  such  person  or  corporation  to  furuisli  to  the  state 
controller  a  list  of  the  names  of  all  depositors  to  whom  said 
money.s  belong  or  to  whom  said  bank  owes  the  same. 

How  drawn  upon. 

Sec.  3.  The  money  in  said  "the  dissolved  savings  bank 
fund"  may  be  drawn  out  on  the  warrants  of  the  state  controller, 
issued  on  proofs  of  ownership,  approved  and  allowed  by  the 
state  board  of  examiners. 

When    same   escheats. 

Sec.  4.  All  moneys  paid  into  the  said  "the  dis.solved  savings 
bank  fund,"  uncalled  for  within  five  years  after  being  paid  in, 
shall  escheat  to  the  state,  and  thereafter  only  drawn  out  in  such 
manner  as  now  provided  for  by  law  for  the  estates  of  deceased 
persons  escheated  to  this  state. 

Attorney  general  empowered  to  bring  actions — Expense  of 
recovery. 
Sec.  5.  That  any  person  or  corporation  failing  to  comply 
with  the  provisions  of  this  act  shall  be  liable  to  the  State  of 
California  for  the  amount  of  money  so  retained  by  them  con- 
trary to  the  provisions  of  the  first  four  sections  of  this  act; 
and  the  attorney  general  of  this  state  is  hereby  authorized, 
empowered,  and  directed  to  bring  action,  in  the  name  of  the 
people  of  the  State  of  California,  in  such  manner  and  upon  the 
same  terms  as  now  provided  for  escheated  estates,  to  recover 
judgment  for  said  money,  and  when  so  recovered,  to  be  paid 
into  the  state  treasury  and  held  subject  to  the  provisions  of  this 
act ;  provided,  that  said  fund  shall  be  liable  for  the  expense  of 
the  recovery  of  the  same,  to  be  paid  out  upon  demands  audited 
by  the  state  board  of  examiners. 

Investment  of  funds. 

Sec.  6.  Whenever,  and  as  often  as  there  is  in  the  state 
treasury  to  the  credit  of  the  said  "the  dissolved  savings  hank 


HANKS   AXn   r.ANKTNf!.  i" 

fund"  the  sum  of  ten  thousautl  dollars,  the  state  board  of 
examiuers  must  invest  the  same  in  civil  funded  bonds  of  this 
state,  or  in  bonds  of  the  United  States,  or  in  bonds  of  the 
several  counties  of  this  state ;  the  investments  to  be  made  in 
such  manner  and  upon  such  terms  as  the  board  shall  deem  for 
the  best  interests  of  the  said  "the  dissolved  savings  bank  fund"  : 
proridcd,  that  no  bonds  of  any  counties  shall  be  purchased  of 
which  the  debt,  debts,  or  liabilities  at  the  time  exceed  fifteen 
per  cent  of  the  assessed  value  of  the  taxable  property  of  said 
county. 

Bonds  purchased. 

Sec.  7.  All  boncLi  purchased  by  the  board  under  the  provi- 
sions of  this  act  must  be  delivered  to  the  state  treasurer,  who 
shall  keep  them  as  a  portion  of  said  "The  dissolved  savings  bank 
fund,"  the  interest  upon  such  bonds  to  be  placed  by  him  to  the 
credit  of  said  fund. 

To  sell  bonds  to  meet  payments. 

Sec.  S.  Whenever  the  moneys  on  hand  in  the  state  treasury 
to  the  credit  of  the  said  "the  dissolved  savings  bank  fund"  Is 
not  sufficient  to  pay  the  claims  allowed  by  the  state  board  of 
examiners  against  said  fund,  it  shall  bo  the  duty  of  said  board 
to  sell  such  bouds  belonging  to  said  fund  as  they  may  deem 
proper,  for  the  purpose  of  providing  funds  for  the  payment  of 
such  claims  so  allowed  by  them. 

Time  act  shall  take  effect. 

Sec.  9.     This  act  shall  take  effect  from  and  after  its  passage. 


An  act  to  compel  savings  banks  to  publish  a  sworn  statement  of 
all   unclaimed   deposits. 

Approved  March  23,  1893  ;  stats.  1893,  p.  183  ;  repealed  March 
21,  1905  ;  stats.  190.'),  p.  582  ;  superseded  by  Civ.  C.  §  583&,  as 
adopted  in   1905. 


An  act  to  compel  all  depositaries  of  money  and  commercial 
banks  to  publish  a  sworn  statement  of  all  unclaimed 
deposits. 

Approved    February    25,    1897;    stats.    1897,    p.    27;    repealed 
March  21,  1905  ;  stats.  1905,  p.  582  ;  superseded  by  Civ.  C.  §  5836, 
as  adopted  in  1905. 
20— CL 


45S  STATtJTKS   AT  LARGE. 

An  act  creating  a  board  of  bank  commissioners,  and   prescribing 
their  duties  and    powers. 

Approved  March  24,  1903,  stats.  1903,  p.  365  ;  amended  1905. 
p.  304  ;  1907,  p.  572.  Superseded  and  repealed  by  "Bank  Act" 
of  1909;  stats.   1909,  p.   87.      (.See  page  4fi.T,  this  vohime. ) 


An  act  to  autliorize  the  deposit  of  state  moneys  in  bankcs  in  this 
state,  and  to  repeal  all  acts  or  parts  of  acts  in  conflict  with 
this  act. 

Approved  February  28,  1907;  stats.  1907,  p.  fi7. 

The  people  of  the  Slate  of  California,  represented  in  senate  and 
assembly,  do  enact  as  folloios: 

Deposit  of  state  moneys  in  banks — Security — Interest — Amount 
to  be  deposited — Expense  of  transportation. 
Section  1.  All  moneys  in  the  state  treasury  belonging  lo 
the  state  not  immediately  required  to  meet  current  expenditures 
may  be  deposited  by  the  state  treasurer  to  the  credit  of  the  stale 
in  such  .state  or  national  bank  or  banks,  in  the  state,  as  the 
treasurer,  with  the  approval  of  the  governor  and  state  controller, 
shall  select  for  the  safe-keeping  of  such  deposits,  and  any  sum 
so  deposited  shall  be  deemed  to  be  in  the  state  treasury ;  pro- 
rided,  that  the  bank  or  banks  in  which  such  money  is  deposited 
shall  furnish  security  as  liereinafter  provided ;  aiid  provided 
further,  that  such  depositary  bank  or  banks  be  selected  from 
those  agreeing  to  pay  the  highest  rate  of  interest,  not  less  than 
two  per  cent  per  annum,  for  such  deposits,  as  may  be  determined 
by  bids  to  be  submitted  at  such  times  and  in  such  manner  as  the 
treasurer,  with  the  approval  of  the  governor  and  state  controller, 
shall  direct ;  provided,  that  not  more  than  one  tenth  of  the  aggre- 
gate amount  of  state  moneys  available  for  deposit  and  on  deposit 
shall  be  deposited  in  any  one  bank  ;  and  provided  further,  that 
such  deposit  shall  not  exceed  twenty-five  per  cent  of  the  paid-up 
capital,  exclusive  of  reserve  and  surplus,  of  any  depositary  bank. 
Any  and  all  bids  may  be  rejected  by  the  treasurer,  with  the 
approval  of  the  governor  and  state  controller,  and  new  bids 
asked  for.  The  expense  of  transportation  of  moneys  to  and 
from  the  state  treasury  to  such  depositaries  shall  be  borne  by 
such  depositaries.  Said  deposits,  with  interest  thereon,  shall  be 
subject   to   withdrawal   at   any   time   upon    the   demand   of   the 


RANKS    ANO    P.ANKrNC.  459 

state  treasiu'er,  or  upon  pvcseiitatioii  of  a  certificate  of  deposit 
properly  indorsed. 

Interest,   when   payable — School    moneys. 

Sec.  2.  The  interest  to  be  paid  by  any  such  depositary  bank 
shall  be  on  the  average  daily  balances  Df  the  state  moneys  kept 
on  deposit  therewith,  and  shall  be  paid  and  credited  to  the  state 
monthly  on  the  first  day  of  each  and  every  month,  and  such 
interest  shall  accrue  to  the  general  fund,  of  the  state  treasury ; 
provided,  that  if  any  moneys  belonging  to  the  state  school  fund 
or  the  state  school  land  fund  shall  at  any  time  be  deposited 
under  the  provisions  of  this  act,  the  interest  received  thereon 
shall  be  paid  into  the  state  school  fund. 

Security  of  funds  deposited. 

Sec.  3.  For  the  security  of  the  funds  deposited  by  the  state 
treasurer  under  the  provisions  of  this  act,  there  shall  be 
deposited  with  the  treasurer  bonds  of  the  United  States,  or  of 
this  state,  or  of  any  county,  municipality  or  school  district 
within  this  state,  which  bonds  shall  be  approved  by  the  governor, 
controller  and  treasurer,  to  an  amount  in  value  at  least  ten 
per  cent  in  excess  of  the  amount  of  the  deposit  with  such  bank 
or  banks  ;  and  if  in  any  case,  or  at  any  time,  such  bonds  are 
not  deemed  satisfactory  security  to  the  governor,  controller  and 
treasurer,  they  may  require  such  additional  security  as  may  be 
satisfactory  to  them.  Said  bonds  or  any  part  thereof  may  bo 
withdrawn  on  the  written  consent  of  the  governor,  controller 
and  treasurer ;  provided,  that  a  suflicientr  amount  of  said  bonds 
to  secure  said  deposits  shall  always  be  kept  in  the  treasury ;  and 
in  the  event  that  said  bank  or  banks  of  deposit  shall  fail  to  pay 
such  deposits  or  any  part  thereof  on  the  demand  of  the  state 
treasurer,  or  upon  any  presentation  of  a  certificate  of  deposit 
properly  indorsed,  then  it  shall  be  the  duty  of  the  state  treasurer 
to  forthwith  convert  said  bonds  into  money  and  to  disburse  the 
same  according  to  law ;  provided,  hoivevcr,  that  he  shall  sell  no 
bonds  for  less  than  their  face  value  except  at  public  sale  after 
ten  days'  printed  notice  in  some  newspaper  of  general  circulation 
published  in  the  county  where  the  sale  is  to  take  place. 

Provisions  of   contract — Treasurer's   annual   statement   to    banks. 

Sec.  4.     The    treasurer   shall    take    from   such    depositary    or 

depositaries  a  written  contract,  in  duplicate,  setting  forth  the 

conditions   and    terms   upon    which    the    funds    of   the   state    are 


4C)0  STATI'TES   AT  T-ARCE. 

deposited  therewith,  one  of  wliich  shall  be  filed  with  the  con- 
troller. One  provision  of  said  contract  shall  be  that  each 
depositary  shall  at  the  end  of  each  month  render  to  the  treas- 
urer a  statement  in  duplicate  showing  the  daily  balances  or 
amount  of  money  of  the  state  held  by  it  during  the  month  and 
the' amount  of  the  accrued  interest  thereon  separately,  one  of 
which  shall  bo  filed  by  the  treasurer  with  the  controller.  The 
treasurer  shall  annually  on  the  first  day  of  July  furnish  each 
depositary  bank  with  a  statement  showing  the  amount  and 
description  of  the  bonds  on  deposit  with  him  by  such  bank  to 
secure  state  deposits. 

Indemnity  bonds. 

Sec.  5.  The  treasurer,  with  the  approval  of  the  governor  and 
controller,  shall,  if  in  his  judgment  it  shall  appear  necessary 
for  the  security  of  the  state,  require  said  banks  of  deposit  to 
give  an  indemnity  bond,  the  sureties  on  which  shall  not  be 
interested  as  stockholders  in  said  bank  or  banks,  to  be  approved 
by  the  governor,  controller  and  treasurer,  to  secure  the  state 
against  loss  by  any  depreciation  in  value  that  may  occur  in  such 
bonds  held  by  him  as  security  for  the  safe-keeping  and  prompt 
payment  of  the  state  moneys  in  such  depositaries. 

Treasurer  not  responsible  for  deposits. 

Sec.  G.  The  state  treasurer  shall  not  be  responsible  for  any 
moneys  deposited  in  a  bank  or  in  banks  under  the  provisions  of 
this  act  W'hile  the  same  remain  there  deposited  with  the  consent 
of  the  governor  and  controller ;  but  the  treasurer  shall  be 
chargeable  with  the  safe-keeping,  management  and  disbursement 
of  the  bonds  and  certificates  of  deposit  deposited  with  him  as 
security  for  deposits  of  state  moneys,  and  with  the  interest 
thereon,  and  the  proceeds  of  any  sale  under  the  provisions  of 
this  act. 

Certificates  of  deposit — Warrants  paid  by  certificates. 

Sec.  7.  At  the  time  of  depositing  state  moneys  in  any  i)ank 
designated  as  a  depositary  the  treasurer  shall  take  a  certificate 
or  certificates  of  deposits  made  payable  to  the  treasurer  of  state 
in  such  sum  or  sums  as  he  shall  deem  advisable.  Such  certifi- 
cate or  certificates  of  deposit  in  the  possession  of  the  treasurer 
shall  be  deemed  and  counted  as  cash  by  the  state  board  of 
examiners.     Controller's  warrants  drawn  upon  the  state  treas- 


BANKS   AND   BANKING.  401 

ury  may  be  paid  by  such  certificates  of  deposit  when  properly 
indorsed  by  the  treasurer  tlie  same  as  in  cash. 

Act  of  1905  repealed. 

Sec.  S.  The  act  of  March  20,  1905,  entitled  "An  act  to 
authorize  the  deposit  of  state  moneys  in  bank.s  in  this  state, 
and  to  repeal  all  acts  or  parts  of  acts  in  conflict  with  this  act," 
and  all  other  acts  or  parts  of  acts  in  conflict  with  this  act,  arc 
hereby  expressly  repealed. 


An  act  to  provide  for  and  regulate  the  deposit  of  county  and 
municipal  moneys  in  banks  and  banking  corporations,  limit- 
ing tlie  amount  of  public  moneys  that  may  be  deposited 
therein,  and  providing  a  penalty  for  the  illegal  deposit  and 
use  thereof. 

Approved  March  23,  1907;  stats.  1907,  p.  974. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Deposit  of  county  and  municipal  moneys  in  banks — Security 
required. 
Section  1.  All  moneys  belonging-  to  any  county  or  munici- 
pality within  the  state,  may  be  deposited  by  any  officer  of  such 
county  or  municipality  having  the  legal  custody  of  such  county 
or  municipal  funds  in  any  licensed  national  bank,  or  banks, 
within  this  state,  or  in  any  bank,  banks  or  corporations  author- 
ized and  licensed  to  do  a  banking  business,  and  organized  under 
the  laws  of  this  state ;  provided,  that  such  bank  or  banks  in 
which  such  moneys  are  deposited  shall  furnish  as  security  for 
such  deposits,  bonds  of  the  United  States,  or  of  this  state,  or  of 
any  county,  municipality  or  school  district  within  this  stnir. 
approved  by  the  officer  making  the  deposit  and  the  distri<'l 
attorney  for  the  county  or  city  attorney  for  the  municipality  (<i 
which  the  deposit  belongs.  The  market  value  of  the  bonds 
furnished  as  security,  shall  be  at  least  ten  per  cent  in  excess  of 
the  amount  of  the  deposit  secured  thereby;  but  the  amount  of 
the  deposit  shall  in  no  case  exceed  the  face  value  of  the  bonds 
furnished  as  security  therefor ;  and  provided,  that  such  bai>k,  or 
l)anks,  shall  ])ay  a  reasonable  rate  of  interest,  not  less  than  two 
per  cent  i)er  Jitunnn  on  the  daily  balances  therein  deposited. 


462  STATUTES   AT  LARGE. 

Rate  of  Interest  to  be  fixed,  when — Minimum  rate — Interest, 
when  payable. 
Sec.  2.  The  rate  of  interest  shall  be  fixed  auinially  as  herein 
provided  in  the  month  of  January  of  each  year  on  all  deposits 
to  be  made  for  such  year ;  provided,  that  the  rate  of  interest 
for  the  year  ending  December  thirty-first,  nineteen  hundred  and 
seven,  may  be  fixed  as  herein  provided  within  ninety  days  after 
this  act  goes  into  efifect.  The  rate  of  interest  shall  be  fixed 
in  the  case  of  counties,  by  the  treasurer,  auditor,  and  chairman 
of  the  board  of  supervisors,  and  in  the  case  of  municipalities 
by  the  treasurer,  auditor  (or  clerk  in  municipalities  having  no 
auditor),  and  chairman  of  the  council  or  other  governing  body  of 
such  municipality.  Said  rate  of  interest  shall  be  a  reasonable 
rate  and  not  less  than  two  per  cent  per  annum  on  the  daily 
balances  deposited ;  and  the  rate  of  interest  so  established  for 
each  year  as  herein  provided,  shall  be  the  uniform  rate  of 
interest  required  from  all  banks  receiving  deposits  from  the 
county  or  municipality,  for  that  year.  Interest  on  all  moneys 
deposited  as  herein  provided  for  shall  belong  to  the  county  or 
municipality  represented  by  the  officer  making  such  deposit  and 
shall  be  paid  quarterly  into  the  general  fund  of  such  county  or 
municipality  except  where  the  law  otherwise  directs. 

Receipt  for  deposit. 

Sec.  3.  It  shall  be  the  duty  of  the  officer  making  the  deposit, 
to  receive  from  the  bank  in  which  the  deposit  is  mtule,  a  receipt 
or  receipts  in  duplicate  showing  the  date  and  amount  of  depo.sit 
and  rate  of  interest  to  be  paid  thereon,  one  copy  of  which  said 
officer  shall  keep  on  file  in  his  office  and  he  ."^hall  file  one  copy 
with  the  auditor  of  the  county  or  auditor  of  the  municipality 
(or  clerk  in  municipalities  having  no  aiiditor).  as  the  case 
may  be. 

Record  of  deposits. 

Sec.  4.  Every  treasurer  shall  keep  a  record  in  his  office 
which  shall  be  open  to  public  inspection,  showing  at  all  times 
the  amount  of  money  on  deposit  and  all  banks  in  which  the 
same  is  deposited,  and  dates  of  deposit.  Also  a  record  of  all 
banks  making  application  for  the  deposil  of  the  public  funds. 

Amount  that  may  be  deposited. 

Sec.  5.  The  total  amount  ul"  puhlic  moneys  on  deposit  in 
any  bank,  shall  not  at  any  one  lime  exceed  fifty  per  cent  of 
the   paid-up   capital   stock    of   such   depositary    liauk    or   banks. 


BANKS    AND   BANKING.  468 

No  officer  shall  have  on  deposit  at  any  one  time  more  thau  teu 
per  cent  of  the  public  moneys  under  his  control  and  available 
for  deposit  in  any  bank  while  there  are  other  qualified  banks 
requesting-  such  deposits ;  provided,  that  no  treasurer  of  a  county, 
or  municipality,  shall  be  required  to  deposit  public  moneys  in 
any  bank  outside  of  the  county  owning-  the  money  or  in  which 
the  municipality  is  situated. 

Receipts  to  be  counted  as  cash. 

Sec.  G.  The  receipt  issued  by  any  bank  for  deposits  made 
therein,  together  with  the  bonds  held  as  security  therefor,  shall 
be  held  by  the  treasurer  making-  the  deposit  and  be  recognized 
and  counted  as  cash  to  the  amount  recited  in  the  receipt  by  the 
officers  required  by  law  to  count  the  same. 

Deposits  subject  to  call. 

kSkc.  7.  Deposits,  with  interest  thereon,  .shall  bo  subject  (o 
withdrawal  on  demand  of  the  treasurer  making  the  same,  or 
his  successors  in  office,  and  any  bank  receiving  the  deposit  of 
public  moneys,  may  at  any  time  return  the  same  to  the  public 
officer  making  such  deposit,  together  with  interest  to  date  of 
return,  and  it  shall  be  the  duty  of  the  public  officer  upon  receiv- 
ing the  return  of  such  deposit,  to  immediately  return  to  such  bank 
all  bonds  held  as  security  for  the  deposit  returned.  When  any 
officer  withdraws  his  deposit  he  shall  return,  on  demand  of  the 
liank,  .such  bonds  as  were  held  as  security  for  the  deposit  or 
portion  thereof  withdrawn. 

On  failure  of  bank  to  repay,  security  to  be  sold. 

Sec.  S.  Should  any  bank  fail  to  pay  any  pu])lic  moneys  held 
on  deposit  as  herein  provided,  the  officer  making  such  deposit 
may,  after  ten  days'  written  notice  to  such  bank,  proceed  to 
sell  at  public  or  private  sale,  such  of  the  bonds  held  by  him  as 
security  as  he  may  see  fit ;  provided,  hotvcver,  that  he  shall  sell 
no  bonds  for  less  than  their  face  value  except  at  public  sale 
after  ten  days'  printed  notice  in  some  newspaper  of  general  cir- 
culation published  in  the  county  where  the  sale  is  to  take  place. 
The  proceeds  of  such  sale,  after  paying  all  expenses,  shall  be 
credited  to  the  account  of  the  bank  which  deposited  the  bonds 
as  collateral.  Any  bank  failing  to  make  payment,  may,  at  any 
time  before  the  sale  of  the  bonds  is  completed,  stop  such  sale 
by  fep;iyinL;-  al!  (ho  moneys  deposited  with  it,  logether  with  any 


464  STATUTES   AT  LARGE. 

expense  that  may  have  been  iuciuTed  by  the  officer  making-  such 
deposit,  as  the  result  of  such  failure.  Should  the  proceeds  of 
any  such  sale  fail  to  fully  repay  any  deposit,  the  balance 
remaining  unpaid  may  be  collected  in  an  action  of  law  in  the 
name  of  the  officer  making-  the  deposit. 

Public  officials  not  responsible  for  loss. 

Sec.  9.  Public  officials  shall  not  be  responsible  for  any  loss 
of  public  moneys  resulting  from  the  deposit  thereof  when  made 
in  accordance  with  the  provisions  of  this  act.  It  shall  be  the 
duty  of  the  officer  making  the  deposit  to  safely  keep  all  evidence 
of  indebtedness  issued  by  banks  for  deposits  made  therein,  and 
bonds  deposited  for  security  and  such  public  officer  shall  be 
responsible  for  such  evidence  of  indebtedness,  and  for  bonds  held 
as  .security  therefor,  together  with  the  interest  thereon  and  the 
proceeds  of  any  sale  of  such  bonds;  and  the  city,  county  or 
municipality  for  which  said  officer  acts,  shall  be  responsible  to 
such  bank  for  the  safe  return  of  the  securities  furnished  by  it  to 
such  ofhcer. 

Expense  of  transportation  of  moneys. 

Sec.  10.  The  expenses  of  transportation  of  moneys  to  or 
from  the  state,  county  or  municipal  treasuries  to  such  depos- 
itaries shall  be  borne  by  such  depositaries. 

Making  of  profit  by  officer  or  violation  of  act  a  felony. 

Sec.  n.  The  making  of  profit  out  of  county,  city,  town  or 
other  public  moneys,  or  using  the  same  for  any  purpose  not 
authorized  by  law  by  any  officer  having  possession  or  control 
thereof,  shall  be  a  felony.  Any  violation  of  the  provisions  of 
this  act  by  a  bank  or  a  banking  corporation,  shall  be  punishable 
by  a  fine  not  exceeding  five  hundred  dollars  for  each  offense,  and 
the  officers  of  such  bank  or  banking  corporation  and  officer 
receiving  such  deposit  .shall  be  guilty  of  a  felony. 

Buying  of  bonds  or  other  lawful  investment  not  prohibited. 

Sec.  12.  Nothing  in  this  act  contained  shall  prevent  any 
county  or  municipality  within  this  state  from  buying  bonds  or 
otherwise  investing  its  money  in  any  manner  now  provided  by 
law  and  nothing  hei-ein  contained  as  to  the  disposition  of  interest 
on  public  moneys  deposited  shall  apply  to  any  money  received  or 
held  by  any  county  or  municipality  wherein  any  law  provides 
for  the  ]>aynienl  of  inler<'sl  or  jirofil  iheredu,  info  any  pnrlic- 
ular  fund. 


BANKS   AND  BANKINC.  ■!(>") 

Repeal  of  conflicting  acts. 

Sec.  13.  All  acts  or  iiarfs  of  acts  in  coullict  with  this  act 
are  hereby  repealed. 

Time  act  shall  take  effect. 

Sec.  14.     This  act  shnll  take  ett'ect  immediately. 

(In  Rolschild  vs.  BunicL  152  Cal.  T..  lield  that  under  section  0. 
article  XI,  of  the  state  Constitution,  provisions  of  a  freeholders' 
charter  as  to  municipal  affairs  i\rv  i)aramount  to  any  law 
enacted  by  the  state  legislature,  and  that  the  legislature  is  with- 
out power  to  enact  any  law  infringinu'  thereon.) 


An   act   to   define   and    regulate   the    business   of   banking. 

Approved  March  ],  1909;  slats.  1909,  p.  87. 

The  people  o/"  the  State  of  California,  represented  in  setuilr  and 
assemhhi.  do  cnaet  as-  follows: 

Art.  I.  General  Provisions,   §§    1-.51. 

II.  Savings  Banks,   §§   60-69. 

III.  Commercial  Banks.  ^§  80-83. 

IV.  Trust  Companies,  §§  90-106. 

V.      State   Banking  Department,    S§    120-117., 

Article  I. 

General  Provisions. 

Sec.    1.  Title  of  act. 

2.  Definition  of  word  "bank." 

3.  Corporations,  how  formed. 

4.  Savings  bank,   meaning  of   term. 

5.  Commercial  bank. 

6.  Trdst  company. 

7.  Foreign   corporations,    requirements   of. 

8.  Certificates  to  do  business. 

9.  Branch  offices. 

10.  Directors,  wlio  are  eligible. 

11.  Director,  oath  required  of. 

12.  Term  "bank"  must  not  be  used,  when. 
]  3.  Unincorporated  banks. 

14.  .-Vdvertising  statements,  to  contain  what. 

15.  Depositors  Ivnown   to  be  dead,   statement  of. 

If).      Deposits  1iy   mai-ried  women  or  minors.      Joint  tenants. 
Deceased   di/iiosilors,   who  may   collect  for. 


-K>(i  STATUTES  AT  LARGE. 

Sec.  17.  Stockholdci'.s,  list  of  to  be  acccssilile. 

1  8.  Partnership,  list  of. 

H).  Capital;    depo.sit   liabilities. 

20.  Lawful   money  reserve. 

21.  Dlvidend.s.     Surplus  fund. 

22.  Departmental  baid<iii?;-. 

23.  Capital   required. 

24.  Certificate   for   each   department    required. 

25.  Department    money    reserve.      Deposits,    transfer    of    to 

otiier   departments. 

26.  Books  of  account  to  be  kept  separate. 

27.  Depositors,    security   for. 

28.  Window  signs,   must  contain,   what. 

29.  Non-stock  corporations  heretofore  created. 

30.  Safe  deposits. 

31.  Sale    of    assets.      Agreement    of    sale    and    purchase,    to 

contain  what. 

32.  Trust  fund.s. 

33.  Officers  not  to  borrow  funds. 

34.  Capital  stock,  purchase  of. 

35.  Mortgages,  restrictions  on   pmchase  of. 

36.  Bonds,  purchase  of. 

37.  Shares  of  corporations. 

38.  Penal  liabilities  of  directors  and  cmiiloyees. 
311.  Same. 

4  0.  Stockholders'    liability,   waiver   of. 

41.  Purchase   of   obligations. 

42.  Purchase  of  assets. 

43.  Deposits  in  other  l)anks. 

44.  Loans  on  bank  stock. 

45.  Interest  unpaid. 

46.  Loans  on  bonds. 

47.  Loans  on  realty. 

48.  National  banlis,   examination  of. 

49.  Savings  banks,  advertising  as. 

50.  Posting   of   certificate. 

51.  Deposits  of  order  of  court. 

Title  of  act. 

Sectiojs  1.  This  act  shall  bo  known  as  the  "Bank  Act," 
and  shall  be  applicable  to  all  corporations  and  individuals 
specified  in  the  next  section. 

Definition  of  word  "bank." 

Sec.  2.  The  word  "bank"  as  used  in  this  act  includes -evei-y 
person,  firm,  company,  (•o-])!irtnersliii)  or  corporation  which  ecu- 


BANKS   AND   BANKING.  467 

ducts   the  business  of  reeeiviui;   uiuiie.v   <iu   deposit.      Bauks  are 
divided  into  the  following  classes  : 

(«)•  Savings  hanks ; 

(h)   Commercial  banks:  and 

(c)    Trust  companies. 

Corporations,  how  formed. 

Sec.  3.  Corporations  may  be  formed  under  the  laws  of  this 
state  to  conduct,  as  provided  in  this  act,  and  not  otherwise,  any 
one  or  all  of  the  businesses  mentioned  in  divisions  a,  h,  and  c  of 
section  2,  of  this  act. 

Savings  bank,  meaning  of  term. 

Sec.  4.  The  term  "savings  bank,"  when  used  in  this  act. 
means  a  bank  organized  for  the  purpose  of  accumulating  and 
loaning  the  funds  of  its  members,  stockholders,  and  depositors, 
and  which  may  loan  and  invest  the  funds  thereof,  receive 
deposits  of  money ;  loan,  invest  and  collect  the  same  with 
interest ;  and  may  repay  depositors  with  or  without  interest, 
and  having  power  to  invest  said  funds  in  such  property,  securi- 
ties and  obligations  as  may  lie  prescribed  by  this  act ;  and  to 
declare  and  pay  dividends  on  its  general  deposits,  and  a  stipu- 
lated rate  of  interest  on  deposits  made  for  a  stated  period  or 
upon  special  terms. 

Commercial  bank. 

Sec.  5.  The  term  ■■commercial  bank,"  when  used  in  this  act, 
means  any  bank  authorized  by  law  to  receive  deposits  of  money, 
deal  in  commercial  paper  or  to  make  loans  thereon,  and  to  lend 
m^ney  on  real  or  personal  property,  and  to  discount  bills,  notes, 
or  other  commercial  paper,  and  to  buy  and  sell  securities,  gold 
and  silver  bullion,  or  foreign  coins  or  bills  of  exchange. 

Trust  company. 

Sec.  (;.  The  term  ■■trust  company,"  when  used  in  this  act. 
means  any  company  which  is  incorporated  for  the  purpose  of 
conducting  the  business  of  acting  as  executor,  administrator, 
guardian  of  estates,  assignee,  receiver,  depositary,  or  trustee. 

Foreign  corporations,  requirements  of. 

Sec.  7.  No  foreign  corporation  shall  transact  a  banking 
business  in  this  state  without  first  complying  with  all  the 
recpiirements  of  the  laws  of  this  state  relative  to  banks  as 
defined  in   this  act.  and   witlioul    having  the  capital  paid  up   in 


408  MTATUTES   At  I.ARGfi. 

this  sliitc  as  required  by  this  act.  Aud  uo  such  foreign  cor- 
poration shall  transact  any  banking  business  in  this  state  until  it 
has  executed  and  filed  with  the  superintendent  of  banks  a  writ- 
ten instrument  appointing  such  superintendent,  or  his  successor 
in  office,  its  true  and  lawful  attorney,  upon  whom  all  process 
in  any  action  or  proceeding  by  any  resident  of  the  state  against 
it  may  be  served,  with  the  same  effect  as  if  such  corporation 
was  formed  under  the  laws  of  this  state  aud  had  been  lawfully 
served  with  process  therein.  Service  in  favor  of  a  resident  of 
this  state  upon  such  attorney  shall  be  deemed  personal  service 
on  such  corporation.  The  superintendent  of  banks  shall  forth- 
with forward  by  mail  a  copy  of  every  process  served  upon  him 
under  the  provisions  of  this  section,  postage  prepaid,  and 
directed  to  the  secretary  of  such  corporation,  at  its  last  known 
post  office  address.  For  each  copy  of  process,  the  superintendent 
of  banks  shall  collect  the  sum  of  two  dollars,  which  shall  be 
paid  by  the  plaintiff  or  moving  party  at  the  time  of  such  service, 
to  be  recovered  by  him  as  part  of  his  taxable  costs  if  he  suc- 
ceed in  the  suit  or  proceeding. 

Certificates  to  do  business. 

Sec.  8.  Every  corporation,  at  the  time  it  applies  for  a  cer- 
tificate to  do  a  banking  business,  must  file  with  the  superin- 
tendent of  banks  a  certified  copy  of  its  articles  of  incorporation, 
or  of  the  statute  chartering  such  corporation,  also  all  instru- 
ments amending  or  altering  such  articles  of  incorporation  or 
charter.  Thereafter  all  amendments  and  certificates  shall  like- 
wise be  so  filed  before  such  instruments  take  effect.  In  like 
manner  all  co-partner.ships  shall  file  certified  copies  of  tkeir 
articles  of  co-partncrshi]i  and  all  amendments  thereto. 

Branch  offices. 

Sec.  9.  No  bank  in  this  state,  or  any  officer  or  director 
thereof,  shall  hereafter  open  or  keep  an  office  other  than  its 
principal  place  of  business,  without  first  having  obtained  the 
written  approval  of  the  superintendent  of  banks  to  the  opening 
of  such  branch  office,  which  written  approval  may  be  given  or 
withheld  in  his  discretion,  and  shall  not  be  given  by  him  until  he 
has  ascertained  to  his  satisfaction  that  the  public  convenience 
and  advantage  will  be  promoted  by  the  opening  of  such  branch 
office;  and  provided,  farihcr,  that  no  bank  or  any  officer  or 
director  thereof,  sliall  niion  or  maintain  such  branch  unless  the 


HANKS   AND  BANKINf!.  46i> 

capital  of  such  bauk,  actually  paid  in  cash,  shall  exceed  the 
amount  required  bj'  this  act  by  the  sum  of  tweuty-five  thousand 
dollars  for  each  branch  office  opened  and  maintained.  Every 
bank,  and  every  such  officer  or  director  violating  the  provisions 
of  this  section  shall  be  guilty  of  a  misdemeanor. 

Directors,  who  are  eligible. 

Sec.  10.  No  person  shall  be  eligible  for  election  as  a  director 
of  a  bank  unless  he  is  a  stockholder  of  the  bank,  owning,  in  his 
own  right,  shares  thereof  of  the  actual  market  value  of  at  least 
five  hundred  dollars;  and  every  person  elected  to  be  director 
who,  after  such  election,  shall  cease  to  be  the  owner  in  his  own 
right  of  the  amount  of  stock  aforesaid,  shall  then  cease  to  be  a 
director  of  the  bank,  and  his  office  shall  then  become  vacant. 
If  a  bank  be  organized  without  capital  stock,  no  person  shall  be 
eligible  as  a  director  thereof  unless  he  is  both  a  member  and  a 
depositor  of  such  bank. 

Director,  oath  required  of. 

Sec.  11.  Each  director  of  a  bank,  when  appointed  or  elected 
shall  take  an  oath  that  he  will  so  far  as  the  duty  devolves  on 
him,  diligently  and  honestly  administer  the  affairs  of  such  bank, 
and  will  not  knowingly  violate  or  willfully  permit  to  be  violated 
any  of  the  provisions  of  law  applicable  to  such  bank,  and  that  he 
is  the  owner  in  good  faith  and  in  his  own  right  of  the  shares  of 
stock  of  the  actual  market  value  required  by  section  10  of  this 
act,  subscribed  by  him  or  standing  in  his  name  on  the  books  of 
the  bank,  and  that  the  same  is  not  hypothecated  or  in  any  way 
pledged  as  security  for  any  loan  or  debt ;  and,  in  case  of 
re-election  or  re-appointment,  that  such  stock  was  not  hypothe- 
cated or  in  any  way  pledged  as  security  for  any  loan  or  debt 
during  his  previous  term.  Such  oath  -shall  be  subscribed  by  the 
director  making  it,  and  certified  by  the  officer  before  whom  it  is 
taken ;  and  shall  be  immediately  transmitted  to  the  superin- 
tendent of  banks,  and  filed  and  preserved  in  his  office. 

Term  "bank"  must  not  be  used,  when. 

Sec.  12.  No  person,  firm,  company,  co-partnership  or  cor- 
poration not  subject  to  the  supervision  of  the  superintendent  of 
banks,  and  not  required  to  report  to  him  by  the  provisions  of  this 
act,  shall  make  use  of  any  office  sign,  at  the  place  where  such 
business  is  transacted,  having  thereon  any  artificial  or  corporate 
name,  or  other  words  indicating  that  such  place  or  office  is  tiie 


470  STATUTES  AT  LARGE. 

ylace  or  office  of  a  bank,  or  that  deposits  are  received  there  or 
payments  made  on  check,  or  any  other  form  of  banking  business 
transacted,  nor  shall  such  person  or  persons,  firm,  company, 
co-partnership  or  corporation  make  use  of  or  circulate  any  letter- 
heads, billheads,  blank  notes,  blank  receipts,  certificates  or  cir- 
culars, or  any  written  or  printed,  or  partly  written  and  partly 
printed,  paper  whatever,  having  thereon  any  artificial  or  cor- 
porate name  or  other  word  or  words  indicating  that  such  busi- 
ness is  the  business  of  a  bank,  savings  bank  or  trust  company. 
Every  person,  firm,  company,  co-partnership  or  officer  of  a 
corporation  violating  the  provisions  of  this  section  shall  be 
guilty  of  a  misdemeanor. 

Unincorporated  banks. 

Sec.  13.  Every  person  or  number  of  persons,  not  being 
incorporated,  engaged  in  the  business  of  banking  or  publicly 
receiving  money  on  deposits,  must  conduct  such  business  under 
a  name  which  shows  the  true  name  of  all  persons  engaged 
therein,  unless  such  person  or  persons  have  complied  with  the 
provisions  of  article  7,  of  chapter  II,  of  title  10,  of  part  IV  of 
division  3  of  the  Civil  Code. 

Advertising  statements,  to  contain  what. 

Sec.  14.  No  bank,  or  any  officer  thereof,  shall  advertise  in 
any  manner,  or  publish  any  statement  of  the  capital  authorized 
or  subscribed,  unless  it  or  he  advertise  and  publish,  in  connection 
therewith,  the  amount  of  capital  actually  paid  up.  Any  bank,  or 
any  officer  thereof,  advertising  in  any  mannei-,  or  publishing  any 
statement  of  such  capital,  authorized  or  subscribed,  without  a 
statement  in  connection  therewith  of  the  capital  actually  paid 
up,  shall  be  guilty  of  a  misdemeanor. 

Depositors  known  to  be  dead,  statement  of. 

Sec.  15.  The  president  or  managing  officer  of  every  bank 
must,  within  fifteen  days  after  the  first  day  of  January  of  every 
odd  numbered  year,  return  to  the  superintendent  of  banks  a 
sworn  statement  showing  the  names  of  depositors  known  to  be 
dead,  or  who  have  not  made  further  deposits,  or  withdrawn  any 
moneys  during  the  preceding  ten  years.  Such  statements  shall 
show  the  amount  of  the  account,  the  depositor's  last  known 
place  of  residence  or  post  office  address,  and  the  fact  of  death, 
if  known  to  such  president  or  managing  officer.  Such  president 
or  managing  officer  must  give  notice  of  these  deposits  in  one  or 


r.A.NKS    AM)    liANKIXU.  471 

more  ucwsiinpei-s  piihlished  in  or  iioarest  to  (lie  lowu  or  city 
where  sucli  bank  has  its  principal  place  of  bnsiness,  at  least 
once  a  weeic  for  four  consecutive  weeks,  the  cost  of  such  publi- 
cation to  be  paid  pro  rata  out  of  such  unclaimed  deposits.  This 
section  does  not  apply  lo  any  deposit  made  by  or  in  the  name  of 
a  person  known  to  the  president  or  managing  officer  to  be  living, 
or  which,  with  the  accumulation  thereon,  is  less  than  tifty  dollars. 
The  superintendent  of  banks  must  incorporate  in  his  subsequent 
report  such  returns  made  to  him  as  provided  in  this  section. 
Any  president  or  managing  officer  of  any  bank  who  neglects  or 
refuses  to  make  the  sworn  statement  required  by  this  section 
shall  be  guilty  of  a  misdemeanor. 

Deposits  by  married  women  or  minors — Joint  tenants — Deceased 
depositors,  who  may  collect  for. 
Sec.  1().  When  any  deposit  with  a  hank  shall  be  made  l>y  or 
in  the  name  of  any  married  woman  or  minor,  the  same  shall  be 
held  for  the  exclusive  right  and  benefit  of  such  depositor,  and 
free  from  the  control  or  lien  of  all  other  persons,  excep't  creditors, 
and  shall  be  paid,  together  with  the  dividends,  if  any,  and 
interest,  if  any,  thereon  to  the  person  in  whose  name  deposits 
shall  have  been  made,  and  the  receipt  or  acquittance  of  such 
minor  shall  be  a  valid  and  sufficient  release  and  discharge  for 
such  deposit,  or  any  part  thereof,  to  the  bank.  When  any 
deposit  with  a  bank  shall  be  made  by  any  ])erson  in  trust  for 
another,  and  no  other  or  further  notice  of  the  existence  and 
terms  of  a  legal  and  valid  trust  shall  have  been  given  in  writing 
to  such  bank,  in  the  event  of  the  death  of  the  trustee,  the  same 
or  any  part  thereof,  together  with  the  dividends  or  interest,  if 
any,  thereon,  may  be  paid  to  the  person  for  whom  the  deposit 
was  made.  When  a  deposit  with  a  bank  shall  be  made  by  any 
person  in  the  dames  of  such  depositor  and  another  person  or 
persons,  and  in  form  to  be  paid  to  either  or  the  survivor  or  sur- 
vivors of  them,  such  deposit  thereupon,  and  any  additions  thereto 
made  by  either  of  such  persons  upon  the  making  thereof,  shall 
become  the  property  of  such  persons  as  joint  tenants,  and  the 
same,  together  with  all  interest  thereon,  shall  be  held  for  the 
exclusive  use  of  the  persons  so  named,  and  may  be  paid  to  either 
during  the  lifetime  of  all  or  any  or  to  the  survivor  or  survivors 
after  the  death  of  one  or  more  of  them,  and  such  payments  and 
the  receipt  or  acquittance  of  the  one  to  whom  such  payment  is 


472  STATUTES  AT  LARGE. 

made  .shall  be  a  valid  and  sufficient  release  and  discharge  lo  said 
hank  for  all  payments  made  on  account  of  such  deposit. 

The  surviving  husband  or  wife  of  any  deceased  person,  or,  if 
no  husband  or  wife  is  living,  then  rhe  childi-en  of  such  decedent, 
and  if  no  children  are  living,  then  the  father  or  mother  of  such 
decedent,  may,  without  procuring  letters  of  administration,  col- 
lect of  any  bank  any  sum  which  said  deceased  may  have  lefl 
on  deposit  in  such  bank  at  the  time  of  his  or  her  death  ;  iiro- 
vided,  such  deposit  shall  not  exceed  the  sum  of  five  hundred  dol- 
lars. Any  bank,  upon  receiving  an  affidavit  stating  that  said 
depositor  is  dead,  and  that  affiant  is  the  surviving  husband  or 
wife,  as  the  case  may  be,  or  stating  that  decedent  left  no  husband 
or  wife,  and  that  affiant  is,  or  affiants  are,  the  children,  or  the 
father  or  mother,  of  said  decedent,  and  that  the  whole  amount 
that  decedent  left  on  deposit  in  any  and  all  banks  of  deposit  in 
this  state  does  bot  exceed  the  sum  of  five  hundred  dollars,  may 
pay  to  said  affiant  or  affiants  any  deposit  of  said  decedent,  if  the 
same  does_  not  exceed  the  sum  of  five  hundred  dollars,  and  Ihe 
receipt  of  such  aflBant  is  sufficient  acquittance  therefor. 

Stockholders,  list  of  to  be  accessible. 

8ec.  17.  Every  bank  now  in  existence  or  hereafter  organized 
shall  keep  in  its  offices,  in  a  place  accessible  to  the  stockholders, 
depositors,  and  creditors  thereof,  and  for  their  use,  a  book  con- 
taining a  list  of  stockholders  in  sucli  corporation,  and  the  num- 
ber of  shares  of  stock  held  by  each  ;  and  every  such  bank  shall 
keep  posted  in  its  office,  in  a  conspicuous  place,  accessible  to  the 
public  generally,  a  notice  signed  by  the  president  or  secretary, 
showing : 

1.  The  names  of  Ihe  directors  of  such  bank. 

2.  The  number  .-ind  par  value  of  the  shares  of  stock  held  by 
each  director.  . 

The  entries  on  such  book  and  such  notice  shall  be  made  and 
l)osted  within  twenty-four  hours  after  any  transfer  of  stock, 
and  shall  be  prima  facie  evidence  against  each  director  and 
stockholder  of  the  number  of  shares  of  stock  held  by  each. 

Partnership,  list  of. 

Sec.  is.  Every  co-partnership  doing  a  banking  business  shall 
keep  in  its  office,  in  a  place  accessible  to  the  partners  and 
depositors  and  the  creditors  thereof,  a  list  of  the  partners  and 
the  ca])ital  i)nid  into  the  co-partnership  of  each  partner. 


BANKS   AND   BANKING.  473 

Capital;  deposit  liabilities. 

Sec.  19.  The  aggregate  of  paid-up  capital,  together  with  tlie 
surplus,  of  every  bauk,  must  equal  ten  per  ceutum  of  its  deposit 
liabilities  ;  such  deposit  liabilities  shall  not  be  increased  when 
-such  proportion  of  paid-up  capital  and  surplus  is  wanting,  and 
in  no  event  shall  said  paid-up  capital  be  less  than  the  minimum 
paid-up  capital  provided  by  this  act.  And  provided  also,  that 
no  savings  bank  shall  be  required  to  have  a  paid-up  capital  and 
surplus  of  more  than  one  million  dollars,  or  if  organized  without 
a  capital  stock,  a  reserve  fund  of  more  than  one  million  dollars. 

Lawful  money  reserve. 

Sec.  20.  Every  bank,  other  than  a  savings  bank,  shall  at  all 
times  have  on  hand,  in  lawful  money  of  the  United  States, 
gold  and  silver  coin,  gold  certificates  or  silver  certificates,  an 
amount  equal  to  fifteen  per  centum  of  the  aggregate  amouut  of 
its  deposits,  exclusive  of  state,  county  and  municipal  deposits. 
The  amount  thus  to  be  kept  on  hand  shall  be  called  its  lawful 
money  reserve.  Three  fifths  of  such  lawful  money  reserve  of 
any  bank,  other  than  a  savings  bauk  may  consist  of  moneys  on 
deposit  sub.iect  to  call  with  any  bank  or  banks  other  than  a 
savings  bauk  iu  this  state;  provided,  that  every  bank  receiving 
deposits  of  other  banks  shall  maintain  as  a  lawful  money 
reserve  at  least  twenty  per  centum  of  the  aggregate  amount  of 
its  deposits,  exclusive  of  state,  county  and  municipal  deposits. 
If  the  lawful  money  reserve  of  any  bank  shall  be  less  than  the; 
amount  required  by  this  section,  such  bank  shall  not  increase 
its  liability  by  making  any  new  loans  or  discounts,  othei-wise 
than  by  discounting  bills  of  exchange  payable  on  sight,  or  mak- 
ing any  dividends  from  profits  until  the  full  amount  of  its  law- 
ful money  reserve  has  been  restored.  The  superintendent  of 
banks  may  notify  any  bank,  whose  lawful  money  reserve  shall 
be  below  the  amount  herein  required,  to  make  good  such  reserve  ; 
and,  if  it  shall  fail  for  thirty  days  thereafter  to  make  good  such 
reserve,  such  bank  shall  be  deemed  insolvent  and  may  be  pro- 
ceeded against  under  the  provisions  of  this  act. 

Dividends — Surplus  fund. 

Sec.  21.  The  directors  of  banks  having  a  capital  stock  may, 
at  such  times  and  in  such  manner  as  the  by-laws  prescribe, 
declare  and  pay  dividends  io  depositors  and  stockholders  of 
so  much  of  the  profits  of  the  bank,  and  of  the  interest  arising 
from   th'>  ra])i(al   and  depi.sils.   as  may  be  appropriated   for  that 


474  STATUTES   AT   LARGE. 

purpose  imder  the  by-laws  or  imder  their  agreements  with 
depositors,  but  every  such  bank  shall,  before  the  declaration  of 
such  dividend,  carry  at  least  one  tenth  (1-10)  part  of  the  net 
profits  of  the  stockholders  for  the  preceding  half  year  to  its 
surplus  or  reserve  fund  until  the  same  shall  amount  to  twenty- 
five  per  centum  of  its  paid-up  capital  stock.  But  the  whole  or 
any  part  of  such  surplus  or  reserve  fund,  if  held  as  the  exclu- 
sive property  of  stockholders,  may  at  any  time  be  converted 
into  paid-up  capital  stock,  in  which  event  such  surplus  or 
reserve  fund  shall  be  restored  in  manner  as  above  provided  until 
it  amounts  to  twenty-five  per  centum  of  the  aggregate  paid-up 
capital  stock.  A  larger  surplus  or  reserve  fund  may  be  created, 
and  nothing  herein  contained  shall  be  construed  as  prohibitory 
thereof.  The  capital  and  the  assets  of  the  bank  are  a  security 
to  depositors  and  stockholders,  depositors  having  the  priority 
of  security  over  the  stockholders,  but  the  by-laws  may  provide 
that  the  same  security  shall  extend  to  deposits  made  by  stock- 
holders. 

Departmental  banking. 

Sec.  22.  Any  corporation  authorized  by  its  articles  of  incor- 
poration so  to  do,  may  combine  the  business  of  a  commercial 
bank  and  savings  bank  and  trust  company,  or  any  or  all  of  them. 

Capital  required. 

Sec.  23.  Every  bank  doing  a  (l('])artiiii'ntal  business,  shall 
have  paid  up  in  cash  a  capital  stock  of  not  less  than  twenty-five 
thousand  dollars  if  it  transacts  both  a  commercial  and  savings 
business ;  and  paid  up  in  cash  a  capital  stock  of  not  less  than 
two  hundred  twenty-five  thousand  dollars  if  it  transacts  both  a 
commercial  and  trust  business  ;  and  paid  up  in  cash  a  capital 
stock  of  not  less  than  two  hundred  twenty-five  thousand  dollars 
if  it  transact  both  a  savings  and  trust  business ;  and  paid  up 
in  cash  a  capital  stock  of  not  less  than  two  hundred  twenty- 
five  thousand  dollars  if  it  transacts  a  commercial,  savings  and 
trust  business.  Such  capital  stock  shall  be  increased  from  time 
to  time  in  the  same  manner  and  to  the  same  extent  as  provided 
for  in  section  nineteen  of  this  act. 

Certificate  for  each  department  required. 

Sec.  24.  Every  bank,  before  it  commences  to  do  business  or 
before  it  opens  a  new  department  and  commences  to  transact 
business    in    or    under    such    new    department,    shall    obtain    the 


BANKS   AND   BANKING.  475 

certificate  of  the  superinteudent  of  banks  for  the  opening  of  eaeli 
of  the  departments  specified.  Each  certificate  herein  provided 
for  shall  be  given  when  the  superintendent  shall,  by  the  exam- 
ination required  by  this  act,  have  satisfied  himself  that  the 
proper  amount  of  cash  has  been  paid  in  as  capital  and  the  pro- 
visions of  this  act  complied  with.  The  applicant  shall  pay  for 
such  certificate  a  fee  of  fifty  dollars. 

Department  money  reserve — Deposits,  transfer  of  to  other 
departments. 

Sec.  25.  Every  bank  shall  maintain  for  each  department  a 
lawful  money  reserve  equal  in  amount  to  that  required  by  this 
act  for  the  respective  business  conducted,  and  shall  keep  sepa- 
rate and  distinct  the  lawful  money  reserve  of  any  department 
from  that  of  any  other  department ;  and  all  deposits  made  with 
other  banks,  whether  temporary  or  otherwise,  shall  be  assets 
of  the  respective  departments  by  which  they  were  made,  and 
shall  be  so  carried  on  the  books  of  such  other  banks,  and  shall 
be  repaid  only  upon  the  order  of  the  department  to  whose  credit 
they  stand. 

No  department  shall  receive  deposits  of  any  other  department 
of  the  same  corporation  ;  provided,  lioioever,  that  any  bank  hav- 
ing departments  shall  have  the  right  to  sell  and  transfer  any 
bonds,  securities  or  loans  from  one  department  to  another  upon 
receipt  of  the  actual  value  thereof,  if  such  bonds,  securities  or 
loans  are  a  legal  investment  for  the  department  purchasing  the 
same  under  the  provisions  of  this  act. 

Books  of  account  to  be  kept  separate. 

Sec.  26.  Every  bank  having  different  departments  shall  keep 
.separate  books  of  account  for  each  department  of  its  business, 
and  shall  be  governed  as  to  all  deposits,  reserves,  investments 
and  transactions  relating  to  each  department  by  the  provisions 
in  this  act  specifically  provided  for  the  respective  kind  of  busi- 
ness. 

It  shall  keep  all  investments  relating  to  the  savings  depart- 
ment entirely  separate  and  apart  from  the  investments  of  its 
other  department  or  departments. 

Every  bank  .shall  conduct  the  business  of  all  its  departments 
in  one  building,  or  in  adjoining  buildings,  and  shall  keep  entirely 
separate  and  apart  in  each  department  the  cash,  securities  .and 
property  belonging  to  such  department,  and  shall  not  mingle  the 
cash,  securities  and  proiierty  of  one  depart in<'iit  with  that  of 
another. 


476  STATUTES   AT  LARGE. 

Depositors,  security  for. 

Sec.  27.  All  money  belougiug-  to  each  department,  whether 
cash  on  hand  or  with  other  banks,  and  the  investments  made, 
shall  be  held  solely  for  the  repayment  of  the  depositors  in  said 
department,  until  all  depositors  of  such  department  shall  have 
been  paid,  and  the  overplus  then  remaining  shall  be  applied  to 
the  other  liabilities  of  such  bank. 

Window  signs,  must  contain,  what. 

Sec.  28.  Every  individual,  hrm  or  corporation  doing  a  bank- 
ing business  in  this  state  must,  on  all  its  window-signs  and  in 
advertising,  and  on  letter-heads  and  other  stationery  on  which 
its  business  is  transacted,  use  the  word  "savings"  if  it  conducts 
a  savings  business,  or  the  word  "trust"  if  it  conducts  a  trust 
department,  and  the  word  "comniercinl"  if  it  conducts  a  com- 
mercial department. 

Non-stock  corporations  lieretofore  created. 

Sec.  .29.  Every  corporation  heretofore  created  under  the  laws 
of  this  state,  doing  a  banking  business  therein,  and  which  has 
no  capital  stock,  may  elect  to  have  a  capital  stock,  and  may 
issue  certificates  of  stock  therefor,  in  the  same  manner  as  cor- 
porations formed  under  the  provisions  of  part  IV,  title  I,  chap- 
ter I,  article  I,  of  the  Civil  Code,  relating  to  the  formation  of 
corporations ;  provuled,  that  no  such  corporation  shall  use  or 
convert  any  moneys  or  funds  theretofore  belonging  to  it,  or 
under  its  control,  into  capital  stock ;  but  such  funds  or  moneys 
must  be  held  and  managed  only  for  the  purposes  and  in  the 
manner  for  which  they  were  created.  Before  such  change  is 
made,  a  majority  of  the  members  of  such  corporation  present 
at  a  meeting  called  for  the  purpose  of  considering  the  proposi- 
tion whether  it  is  best  to  have  a  capital  stock,  its  amount,  and 
the  number  of  shares  into  which  it  shall  be  divided,  must  vote 
in  favor  of  having  a  capital  stock,  fix  the  amount  thereof,  and 
the  number  of  shares  into  which  it  shall  be  divided.  Notice  of 
the  time  and  place  of  holding  such  meeting,  and  its  object,  must 
be  given  by  the  president  of  such  corporation  by  mailing  notice 
of  such  meeting  to  each  member  of  such  corporation  at  his  last 
known  post  office  address  at  least  ten  days  prior  to  the  day 
fixed  for  such  meeting,  ajid  by  publication  in  some  newspaper 
printed  and  published  in  the  county,  or  city  and  county,  in 
which  the  principal  place  of  business  of  the  corporation  is 
siluated,  at  least  once  a  week  for  three  successive  weeks  prior 


r.ANICS    AND    P.ANKINd.  477 

to  the  holding-  of  the  meeting.  A  copy  of  the  proceedings  of 
this  meeting,  giving  the  number  of  persons  present,  the  votes 
taiien,  the  notice  calling  the  meeting,  the  proof  of  its  publication, 
the  amount  of  capital  actuallj'  subscribed,  and  by  whom,  all  duly 
certified  by  the  president  and  secretary  of  the  corporation,  must 
lie  filed  in  the  office  of  the  secretary  of  state  and  clerk  of  the 
county  where  the  articles  of  incorporation  are  filed.  There- 
after such  corporation  is  possessed  of  all  the  rights  and  powers, 
and  is  subject  to  all  the  obligations,  restrictions,  and  limitations, 
as  if  it  had  been  originally  created  with  a  capital  stock. 

Safe  deposits. 

Sec.  30.  Any  bank  may  conduct  a  safe  deposit  department. 
but  shall  not  invest  more  than  one  tenth  of  its  capital  and  sur- 
plus in  such  safe  deposit  department. 

Sale  of  assets— TAgreement  of  sale  and  purchase,  to  contain  what. 

Sec.  31.  Any  bank  may  sell  the  whole  or  any  portion  of  its 
assets  to  any  other  bank  which  may  purchase  its  assets  after 
obtaining  the  consent  of  the  stockholders  of  the  selling  and  of 
the  purchasing  bank  holding  of  record  at  least  two  thirds  of 
the  issued  capital  stock  of  each  of  such  corporations ;  such 
consent  to  be  expressed  either  in  writing  executed  and  acknowl- 
edged by  such  stockholders  and  attached  to  the  instrument  of 
sale,  or  to  a  copy  thereof,  or  by  vote  at  a  stockjiolders'  meeting 
of  such  banks  called  for  that  purpose. 

The  selling  and  purchasing  banks  may  for  such  purposes 
enter  into  an  agreement  of  sale  and  purchase,  which  agreement 
shall  contain  all  the  terms  and  conditions  connected  with  the 
sale  and  purchase  of  its  assets. 

Such  agreement  shall  contain  proper  provision  for  the  pay- 
ment of  liabilities  of  the  selling  bank,  and  in  this  particular 
shall  be  subject  to  the  approval  of  the  superintendent  of  banks ; 
and  shall  not  be  valid  until  such  approval  is  obtained.  Such 
agreement  may  contain  provisions  for  the  transfer  of  all  deposits 
to  the  purchasing  bank,  subject,  however,  to  the  right  of  every 
depositor  of  the  selling  bank  to  withdraw  his  deposit  in  full  on 
demand  after  such  transfer,  irrespective  of  the  terms  under 
which  it  was  dejinsited  with  the  selling  bank. 

Trust  funds. 

Sec.  32.  Any  bank  receiving  trust  funds  in  accordance  with 
the  provisions  of  this  act  relating  to  trust  companies  must  not 
mingle  such  trust  funds  with   the  other  assets  of  the  corpora- 


478  STATUTES   AT  LAROIC. 

tiou,  aud  such  funds  shall  not  be  carried  or  counted  as  any  part 
of  the  lawful  reserve  provided  for  iii  this  act.  The  officers  of 
any  bank  who  knowingly  violate  or  consent  to  the  violation  of 
this  provision  shall  be  guilty  of  a  felony. 

Officers  not  to  borrow  funds. 

Sec.  33.  No  officer  or  employee  oL"  any  bank  shall,  directly 
or  indirectly,  for  himself  or  as  the  partner  or  agent  of  others, 
borrow  any  of  the  deposits  or  other  funds  of  such  bank,  nor 
shall  he  nor  any  director  become  an  endorser  or  surety  for  loans 
to  others  nor  in  any  manner  be  obligor  for  moneys  borrowed  or 
loaned  by  such  bank.  The  office  of  any  officer  or  employee  who 
acts  in  contravention  of  the  provisions  of  this  section  shall 
immediately  become  vacant,  and  he  shall  be  guilty  of  a  misde- 
meanor. 

Capital  stock,  purchase  of. 

Sec.  34.  No  bank  shall  purchase  or  invest  its  capital  or 
money  of  its  depositors,  or  any  part  of  either,  in  the  shares  of 
its  own  capital  stock ;  nor  loan  its  capital  or  the  money  of 
its  depo.sitors,  or  any  part  of  either,  on  the  shares  of  its  own 
capital  stock,  unless  such  purchase  or  loan  shall  be  necessary 
to  prevent  loss  on  debts  previously  contracted  in  good  faith. 

Stock  thus  purchased  or  carried  shall,  within  six  months  from 
the  time  of  its  purchase,  be  sold  or  disposed  of  at  luililic  or 
private  sale. 

The  officers  of  any  bank  who  knowingly  violate  or  coiis-nt  (o 
the  violation  of  this  pi'ovision  shall  be  guilty  of  a  felony. 

iVIortgages,  restrictions  on  purchase  of. 

Sec.  35.  No  director,  or  officer,  or  employee,  or  controlling 
stockholder  of  any  bank  shall,  directly  or  indirectly,  for  him- 
.self  or  as  the  partner  or  agent  of  others,  sell  or  transfer,  or 
cause  to  be  sold  or  transferred  to  the  bank  of  which  he  is  a 
director,  officer,  employee,  or  controlling  stockholder,  any  mort- 
gage on  real  estate  or  contract  arising  from  the  sale  of  real 
estate  made  by  any  corporation  or  syndicate  in  which  such 
director  or  officer,  or  employee,  or  controlling  stockholder  is 
personally  or  financially  interested,  without  the  consent  in  writ- 
ing of  the  superintendent  of  banks. 

Any  director,  or  officer,  or  employee,  or  controlling  stock- 
holder of  any  bank  who  knowingly  violates  or  consents  to  the 
violation  of  this  provision  shall  be  deemed  guilty  of  a  felony. 


li.VNKS    AND   BANKINC.  IT'.t 

Bonds,  purchase  of. 

Sec.  36.  No  bank  receiving  deposits  of  money  shall  pur- 
chase, agree  to  purchase,  underwrite  or  guarantee  any  bond 
issue  in  excess  of  five  per  centum  of  its  assets,  except  bonds 
of  the  United  States,  of  the  State  of  California,  of  the  cities, 
cities  and  counties,  counties  or  school  districts  of  this  state. 

Shares  of  corporations. 

Sec.  37.  No  bank  shall  purchase,  or  invest  its  capital  or 
money  of  its  depositors,  or  any  part  of  either,  in  shares  of  cor- 
porations, unless  such  purchase  shall  be  necessary  to  prevent 
loss  on  debts  previously  contracted  in  good  faith,  and  stock  thus 
purchased  or  carried  shall,  within  six  months  from  the  time  of 
its  purcha.se,  be  sold  or  disposed  of  at  public  or  private  sale, 
unless  permission  to  hold  said  stock  for  a  longer  period  shall  be 
obtained  from  the  superintendent  of  banks. 

The  officers  of  any  bank  who  knowingly  violate  or  consent  to 
the  violation  of  this  provision  shall  be  deemed  guilty  of  a  felony. 

Penal  habilities  of  directors  and  employees. 

Sec.  38.  A  director,  officer,  agent  or  employee  of  any  hank 
who. 

First- — Knowingly  receives  or  possesses  himself  of  any  of  its 
property  otherwise  than  in  payment  for  a  just  demand,  and 
with  intent  to  defraud,  omits  to  make  or  to  cause  or  direct  to 
be  made  a  full  and  true  entry  thereof  in  its  books  and  ac- 
counts ;  or, 

*S'eco»fZ— Concurs  in  omitting  to  make  any  material  entry 
1  hereof ;  or. 

Third — Knowingly  concurs  in  making  or  publishing  any 
written  report,  exhibit  or  statement  of  its  affairs  or  pecuniary 
condition  containing  any  material  statement  which  is  false;  or. 

Fourth — Having  the  custody  or  control  of  its  books,  willfully 
refuses  or  neglects  to  make  any  proper  entry  in  the  books  of 
such  corporation  as  required  by  law,  or  to  exhibit  or  allow  the 
same  to  be  inspected  and  extracts  to  be  taken  therefrom  by  the 
superintendent  of  banks,  his  chief  deputy  or  any  of  his  exam- 
iners, shall  be  guilty  of  a  felony. 

Same. 

Sec.  39.  Any  ofiicer,  director,  agent,  teller,  clerk,  or  em- 
ployee of  any  bank  who  either. 

First — Knowingly  overdraws  his  account  with  such  bank,  and 


480  STATTTTKS  AT  I.AnOK. 

Ihoroby  obtains  the  money,  notos  or  fnnds  of  any  sncli   liank  ; 
and, 

Second — Asks  or  receives  or  consents  or  agrees  to  receive  any 
commissions,  emolnmeuts,  gratnity  or  reward,  or  any  money, 
property  or  thing  of  value  or  of  personal  advantage,  for  procur- 
ing or  endeavoring  to  procure  for  any  jierson,  firm  or  corpora- 
tion any  loan  from,  or  the  purchase  or  discount  of  any  paper, 
note,  draft,  check  or  bill  of  exchange,  by  such  bank,  or  for 
permitting  any  person,  firm  or  corporation  to  overdraw  any 
account  with  such  bank,  is  guilty  of  a  felony. 

Stockholders'  liability,  waiver  of. 

Sec.  40.  No  bank  mentioned  in  this  act  shall  make  any 
contract  with  any  of  its  depositors  whereby  the  stockholders' 
liability  provided  for  by  the  constitution  of  this  state  is  in 
any  manner  waived,  and  if  any  such  contract  shall  be  so  made, 
such  contract  shall  bo  void. 

Purchase  of  obligations. 

Sec.  41.  No  director,  officer,  agent  or  servant  of  any  bank 
shall,  directly  or  indirectly,  for  his  own  personal  benefit,  pur- 
chase or  be  interested  in  the  purchase  of  any  of  the  oljligatious 
of  said  bank  for  a  less  sum  than  sliall  aiipear  upon  the  face 
thereof. 

Purchase  of  assets. 

Sec.  42.  No  director,  officer,  agent,  or  servant  of  any  bank 
shall,  directly  or  indirectly,  for  his  own  personal  benefit,  pur- 
chase or  be  interested  in  the  purchase  of  any  of  the  assets 
of  said  bank,  for  a  less  sum  than  the  current  market  value 
thereof.  Every  person  violating  the  provisions  of  this  subdi- 
vision shall  be  guilty  of  a  misdemeanor. 

Deposits  in  other  banks. 

Sec.  43.  No  bank  shall  deposit  any  of  its  funds  with  any 
other  bank,  unless  such  other  bank  has  been  designated  as  a 
depositary  for  its  funds  by  the  vote  of  a  ma.iority  of  the 
directors  or  trustees  of  the  bank  making  the  deposit,  exclusive 
of  the  vote  of  any  director  or  trustee  who  is  an  officer,  director 
or  trustee  of  the  depositar.v  so  designated. 

Loans  on  bank  stock. 

Sec.  44.  No  bank  shall  hereafter  make  a  loan  secured  by 
the  stock  of  another  bank,  if  by  making  such  loan  the  total 
stock  of  such  other  bank  held  by  such  loaning  bank  as  collateral 


BANKS   AND   BANKING.  481 

will  exceed  iu  the  aggregate  ten  per  centum  of  the  capital  stock 
of  such  other  bank  ;  provided,  that  no  loan  upon  the  capital  stock 
of  any  bank  shall  be  made  unless  such  bank  has  been  in  existence 
for  two  or  more  years  and  has  earned  and  paid  a  dividend  upon 
its  capital  stock. 

Interest  unpaid. 

Sec.  4.">.  Interest  unpaid,  although  due  or  accrued,  on  debts 
owing  to  any  bank,  shall  not  be  included  in  calculation  of  its 
pi'ofits  previous  to  a  dividend. 

Loans  on  bonds. 

Sec.  4G.  No  bank  shall  invest  or  loan  more  than  five  per 
coutum  of  its  assets  in  any  one  bond  issue,  except  bonds  of  the 
United  States,  of  the  State  of  California,  of  the  counties,  cities 
and  counties,  cities  or  school  districts  of  this  state. 

Loans  on  realty. 

Sec.  47.  No  bank  shall  make  any  loan  on  real  estate  except 
it  be  a  first  lien,  but  this  provision  shall  not  prevent  the  accept- 
ance of  a  second  lien  to  secure  the  payment  of  a  debt  previously 
contracted  in  good  faith. 

National  banks,  examination  of. 

Sec.  48.  Any  national  bank  of  this  state  receiving  the 
deposits  of  banks  organized  and  conducting  business  under  this 
act,  must,  at  the  request  of  the  superintendent  of  banks,  submit 
to  an  examination  by  him,  or  his  duly  appointed  examiners, 
should  the  superintendent  of  banks  in  his  discretion  deem  it 
necessary  or  desirable  that  such  examination  be  made  ;  and  the 
expense  of  such  examination  shall  be  paid  by  such  national 
bank ;  and  if  any  such  national  bank  shall  refuse  to  permit  such 
examination  to  bo  made  by  the  superintendent  of  banks,  then  the 
superintendent  of  banks  shall  notify  in  writing  any  and  all 
banks  depo.siting  its  funds  with  such  national  bank,  to  withdraw 
its  deposits  therefrom,  and  such  bank  shall  comply  with  such 
order,  and  failure  so  to  do  shall  be  a  misdemeanor. 

Savings  banks,  advertising  as. 

Sec.  49.  It  shall  not  bo  lawful  for  any  commercial  bank, 
individual  banker,  trust  company,  association,  firm,  stock  com- 
pany or  corporation,  to  advertise  or  put  forth  a  sign  as  a  sav- 
ings bank,  oithor  diroclly  or  iinlireclly,  or  in  ;iny  way  to  solicit 


482  STATUTES    AT   LARGE. 

or  receive  deposits  as  a  savings  bank,  except  in  the  case  of 
savings  banlis  or  banlis  having  a  savings  department,  subject 
to  the  provisions  of  this  act. 

Posting  of  certificate. 

Sec.  50.  Every  bank  shall  post  in  a  conspicuous  place  in  its 
banking  room  the  last  certificate  obtained  from  the  superin- 
tendent of  banks,  as  provided  for  in  section  127  of  this  act. 
Every  bank  that  fails  to  comply  v\'ith  the  provisions  of  this 
section  is  guilty  of  a  misdemeanor. 

Deposits  of  order  of  court. 

Sec.  51.  Any  court  having  appointed  and  having  jurisdic- 
tion of  any  executor,  administrator,  guardian,  assignee,  receiver, 
depositary  or  trustee,  upon  the  application  of  such  executor, 
administrator,  guardian,  assignee,  receiver,  depositary  or  trustee, 
or  upon  the  application  of  any  person  having  an  interest  in  the 
estate  administered  upon  by  such  officer  or  trustee,  after  notice 
to  other  parties  in  interest  as  the  court  may  direct,  and  after 
a  hearing  upon  such  application,  may  authorize  such  officer  or 
trustee  to  deposit  any  money  then  in  his  hands  as  such  officer  or 
trustee  or  which  may  thereafter  come  into  his  hands,  and  until 
the  further  order  of  the  court,  in  any  bank  organized  under  the 
laws  of  the  State  of  California  ;  and  upon  such  deposit  being 
made,  the  officer  or  trustee  so  depositing  the  same  shall  there- 
after and  while  such  moneys  remain  on  deposit  in  such  bank,  be 
relieved  and  discharged  from  all  liability  and  responsibility 
therefor,  and  the  bond  required  of  such  officer  or  trustee  given 
upon  his  appointment  shall  be  thereupon  by  said  court  reduced 
to  such  an  amount  as  the  court  my  deem  reasonable ;  such 
deposit  shall  be  repaid  only  upon  the  orders  of  said  court,  and 
shall  be  a  preferred  claim  against  such  bank  and  be  paid  in  full 
before  any  other  depositor  of  such  bank  shall  have  been  paid. 

Abticle  II. 
Savings  Banks. 

Sec.  60.     Capital  required. 

61.  May   hold   what    property.      May    hold    what    securities. 

Restrictions. 

62.  Debts    other    than    for    deposits.       Exchange,    rate    for. 

Securities,    hypothecation   of. 
6."..     Certificates  of  deposit,  i.ssuc  of.     Time  certificates. 


BANKS   AND   BANKING.  483 

Sec.  61.  Conditions  of  payment  to  depositors.     Reserve  fund. 

65.  Directors,  borrowing  by,  forbidden. 

66.  "Creation  of  debt"   defined. 

67.  Loans,  limit  on  and  security  for. 

68.  Lawful  reserve  ;  deposits  with  commercial  banks. 

69.  Savings  banks  to  be  conducted  under  provisions  of  this 

act. 
Capital  required. 

Sec.  go.  Every  savings  bank  must  have  actually  paid  in  a 
capital  stock  of  not  less  than  twenty-five  thousand  dollars,  or, 
if  organized  without  capital  stock,  a  reserve  fund  of  at  least  one 
million  dollars  and  until  said  sum  of  twenty-five  thousand  dollars 
or  said  sum  of  one  million  dollars  shall  be  actually  paid  in,  the 
superintendent  of  banks  shall  refuse  to  issue  the  certificate 
required  by  this  act ;  provided,  that  nothing  herein  shall  be  con- 
strued to  affect  the  provisions  of  section  twenty-three  of  this  act 
relative  to  the  capital  stock  required  of  banks  doing  a  depart- 
mental business. 

May    iioid    what    property — May    hold    what    securities — Restric- 
tions. 
Sec.  G1.     Savings  banks  may  purchase,  hold  and  convey  real 
and  personal  property  as  follows  : 

1.  The  lot  and  building  in  which  tlie  business  of  the  bank  is 
carried  on  ;  such  lot  and  building  shall  not  cost  the  savings  bank 
an  amount  exceeding  its  capital  and  surplus;  and  the  authority 
of  a  two-thirds  vote  of  a  full  board  of  directors  shall  be  neces- 
sary to  authorize  the  purchase  or  construction  thereof. 

2.  Such  as  may  have  been  mortgaged,  pledged,  or  conveyed 
to  it  in  trust  for  its  benefit  in  good  faith,  for  money  loaned  in 
pursuance  of  the  regular  business  of  the  corporation. 

3.  Such  as  may  have  been  purchased  at  sales  under  pledges, 
mortgages  or  deeds  of  trust  made  for  its  benefit  for  moneys  so 
loaned,  and  such  as  may  be  conveyed  to  it  by  borrowers  in  satis- 
faction and  discharge  of  loans  made  thereon. 

No  savings  bank  shall  ptirchase,  hold,  or  convey  real  cslale 
in  any  other  case  or  for  any  other  purpose ;  and  all  real  estate 
described  in  subdivision  8  of  this  section  must  be  sold  by  the 
hank  within  ten  years  after  the  title  thereto  is  vested  in  it  by 
purchase  or  otherwise,  unless  permission  to  hold  said  real  estate 
for  a  longer  period  be  given  by  the  superintendent  of  banks  in 
writing.  I'arcels  of  renl  eslat*^  not  sold  within  ten  years,  or 
e.xlensioii    i>\'  said    pei-jod   as   alioNc   proNidcd,    may    br    |Mii-<-liasi'(l 


484  STATUTES   AT   LARGE. 

by  any  persons  oi-  parties  wanting  them,  at  the  price  to  be  deter- 
mined by  arbitration  of  three  persons  appointed  by  the  superior 
court  as  appraisers,  at  the  request  of  the  would-be  purchaser. 

No  savings  bank  shall  purchase,  own,  or  sell  personal  property, 
except  such  as  may  be  requisite  for  its  immediate  accommoda- 
tion for  the  convenient  transaction  of  its  business,  and  mortgages 
on  real  estate,  bonds,  securities,  or  evidences  of  indebtedness, 
public  or  private,  gold  and  silver  bullion  and  United  States  mint 
certificates  of  ascertained  value,  and  evidences  of  debt  issued  by 
the  United  States. 

No  savings  bank  shall  purchase,  hold  or  convoy  bonds,  securi- 
ties or  evidences  of  indebtedness,  public  or  private,  except  as 
follows : 

(a)  Bonds  or  interest-bearing  notes  or  obligations  of  the 
United  States,  or  those  for  which  the  faith  of  the  United  States 
is  pledged  for  the  payment  of  interest  and  principal. 

(J))    Bonds  of  this  state. 

(c)  Bonds  of  any  state  in  the  United  States  that  have  no!, 
within  five  years  previous  to  making  such  in\ostnient  by  such 
bank,  defaulted  in  the  payment  of  any  i)art  of  either  piiuciiml 
or  interest  thereof. 

(rf)  Bonds  of  any  ci(y,  couiily.  cily  ami  couiily,  luwii,  town- 
ship or  school  district  of  this  state. 

(fi)  Bonds  of  any  city,  town  or  county  which  has  in  eacii 
case,  at  the  time  of  the  investment,  more  than  twenty  thousand 
inhabitants,  as  ascertained  by  the  United  States  or  state  census 
made  next  preceding  such  investment,  in  any  of  the  states  of 
the  United  States,  other  than  in  the  State  of  California,  issued 
pursuant  to  the  authority  of  any  law  of  such  states ;  pruvided. 
the  entire  bonded  indebtedness  of  such  city  or  county  or  town 
shall  not  exceed  five  per  centum  of  the  assessed  value  of  the 
taxable  property  therein,  including  the  issue  of  bonds  in  which 
said  investment  is  made  as  shown  by  the  last  ass(>ssnient  pre- 
ceding the  investment;  and  provided,  fiirthrr.  that  such  city, 
town  or  county  or  state  in  which  it  is  situated  has  not  defaulted 
in  the  payment  of  any  part  of  either  principal  or  interest  thereon 
within  five  years  previous  to  making  such  investment. 

(f)  First  mortgage  or  underlying  bonds  of  any  steam  railway, 
the  income  of  which  is  sufficient  to  pay  all  operating  expenses 
and  fixed  charges,  and  which  is  completed  and  operatfd.  wholly 
or  in  part,  in  any  of  the  stiilcs  of  the  United  States. 

{(j)   Bonds  of  street   railroads,  water,  light,  light  and  power, 


BANKS    AND    BANKING.  485 

gas,  aud  other  public  utility  and  industrial  corporations.  All 
bonds  authorized  for  investment  by  this  section  shall  be  secured 
by  a  mortgage  or  trust  deed,  which  is,  at  the  time  of  making  such 
investment,  (1)  a  first  or  underlying  mortgage  or  trust  deed  of 
the  corporation  issuing  said  l)0uds,  or  (2)  a  refunding  mortgage 
or  trust  deed  used  to  retire  all  prior  lien  mortgage  debts  of  said 
corporation  outstanding  at  the  time  of  making  said  investment ; 
provided,  that  the  income  of  such  corporation  is  sufficient  to  pay 
all  operating  expenses  and  fixed  charges  and  such  income  shall 
have  been  so  sufficient  for  the  term  of  three  years  preceding  the 
issuance  of  such  bonds,  or  that  payment  of  its  said  bonds  have 
been  guaranteed  by  a  corporation  that  has  paid  all  its  operating 
expenses  and  fixed  charges  for  a  period  of  three  years  prior  to 
guaranteeing  the  payment  of  such  bonds. 

{h)  First  mortgage  bonds  or  deeds  of  trust  issued  by  real 
estate  corporations ;  provided,  that  said  bond  issue  shall  not 
exceed  sixty  per  centum  of  the  market  value  of  the  real  estate 
taken  as  security. 

No  savings  bank  shall  purchase  the  bonds  of  •any  corporation 
or  make  a  loan  on  the  bonds  of  any  corporation,  if  the  franchise 
of  such  corporation  expires  prior  to  the  maturity  of  its  bonds, 
or  if  the  franchise  or  special  privilege  granted  to  such  corpora- 
tion by  any  city,  county,  or  city  and  county,  expires  before  the 
maturity  of  such  bond  issue. 

Debts  other  than  for  deposits — Exchange,  rate  for — Securities, 
hypothecation  of. 

S^EC.  G2.  Xo  savings  bank  shall,  directly  or  indirectly,  deal 
or  trade  in  real  or  personal  property  in  any  other  case  or  for 
any  other  purpose  than  is  authorized  by  this  act,  and  shall  not 
contract  any  debt  or  liability  for  any  purpose  whatever  other 
than  for  deposits,  except  as  in  this  section  provided. 

Savings  banks  may  pay  regular  depositors,  when  requested  l)y 
them,  by  draft  upon  deposits  to  the  credit  with  their  banks,  and 
charge  current  rate  of  exchange  for  such  drafts. 

No  savings  bank  shall  borrow  money,  or  pledge  or  hypothe- 
cate any  of  its  securities,  except  to  meet  the  immediate  demands 
of  its  own  depositors,  and  then  only  in  pursuance  of  a  resolution 
adopted  by  a  vote  of  a  majority  of  its  board  of  directors,  duly 
entered  upon  their  minutes,  wherein  shall  be  recorded  the  ayes 
and  nays  upon  each  vote  ;  also  with  the  written  approval  of  the 
superinlendent  of  banks,  and  he  shall  have  the  autliority  to  fix 


■186  STATUTES   AT  LAUGE. 

the  amount  to  be  borrowed,  and  the  term  and  rate  of  interest 
thereon ;  provided,  however,  that  savings  banks  may,  in  the 
manner  authorized  by  law,  and  without  the  written  approval  of 
the  superintendent  of  banks,  borrow  the  pul^lic  moneys  of  the 
state,  counties,  cities  and  counties,  and  towns  and  receive  such 
public  moneys  on  deposit. 

Certificates  of  deposit,   issue  of — Time   certificates. 

Sec.  G3.  Savings  banks  may  issue  general  certificates  of 
deposit,  which  are  transferable,  as  in  other  case.s,  by  indorsement 
and  delivery  ;  may  issue,  when  requested  by  the  depositor,  special 
certificates,  acknowledging  the  deposit  by  the  person  therein 
named  of  a  specified  sum  of  money,  and  expressly  providing  on 
the  face  of  such  certificate  that  the  sum  so  deposited  and  therein 
named  may  be  transferred  only  on  the  books  of  the  bank  ;  j)ay- 
meut  thereafter  made  by  the  bank  to  the  depositor  named  in  such 
certificate,  or  to  his  assignee  named  upon  the  books  of  the  bank, 
or  in  case  of  death,  to  the  legal  representative  of  such  person,  of 
the  sum  for  which  such  special  certificate  was  issued,  shall  dis- 
charge the  bank  from  nil  further  liability  on  account  of  the 
money  so  paid. 

All  time  certificates  of  deposit,  issued  by  a  savings  bank,  shall 
be  subject  to  the  same  limitations  and  conditions  as  applied  to 
other  deposits,  and  notice  thereof  shall  be  given  by  the  vvords 
"Subject  to  conditions  of  agreement  with  depositors"  iirintcd  on 
the  face  of  the  certificate  issued. 

Conditions  of  payment  to  depositors — Reserve  fund. 

Sec.  G4.  Savings  banks  may  prescribe  by  their  b.\-laws,  or  by 
contract  with  depositors,  the  time  and  conditions  on  which  repay- 
ment is  to  be  made  to  depositors,  except  as  in  this  act  otherwise 
prohibited;  but  whenever  there  is  any  call  by  depositors  for 
repayment  of  a  greater  amount  than  the  bank  may  have  dis- 
posable for  that  purpose,  the  directors  or  officers  thereof  must  not 
make  any  new  loans  or  investments  of  the  funds  of  the  depos- 
itors, or  of  earnings  thereof,  imtil  such  excess  of  call  has  ceased. 
The  directors  of  any  such  bank,  having  no  capital  stock,  must 
retain,  on  each  dividend  day,  at  least  ten  per  centum  of  the  net 
profits  of  the  bank,  to  constitute  a  reserve  fund,  which  must  be 
invested  in  the  same  manner  as  other  funds  of  the  bank,  and 
must  be  used  toward  paying  any  losses  which  the  bank  may  sus- 
tain in  pursuing  its  lawful  business.  The  bank  may  iirovide  by 
its  l)y-laws  for  the  disiiosiil  of  any  excess  in  I  lie  resi'r\('  fund,  as 


BANKS    AND    BANKING.  487 

provided  for  in  section  21  of  this  act,  and  the  final  disposal,  upon 
the  dissolution  of  the  bank,  of  the  reserve  fund,  or  of  the 
remainder  thereof,  after  payment  of  losses. 

Directors,  borrowing  by,  forbidden. 

Sec.  65.  No  director,  or  officer  of  any  savings  bank  must, 
directly  or  indirectly,  for  himself  or  as  the  partner  or  agent  of 
others,  borrow  any  of  the  deposits  or  other  funds  of  such  bank, 
nor  must  he  become  an  endorser  or  surety  for  loans  to  others, 
nor  in  any  manner  be  ol)ligor  for  moneys  borrowed  of  or  loaned 
by  such  bank.  The  office  of  any  director  or  officer  who  acts  in 
contravention  of  the  provisions  of  this  section  immediately  there- 
upon becomes  vacant,  and  every  director  or  officer  author i/.ing  or 
consenting  to  such  loan,  and  the  persou  who  receives  such  loan, 
shall  severally  be  guilty  of  a  misdemeanor. 

"Creation  of  debt"  defined. 

Sec.  6G.  Receiving  deposits,  issuing  certificates  of  deposit, 
checks,  and  bills  of  exchange,  and  the  like,  in  the  transaction  of 
the  business  of  savings  banks,  must  not  be  construed  to  be  the 
creation  of  debt  within  the  meaning  of  the  phrase  "create  debt" 
in  section  three  hundred  and  nine  of  the  Civil  Code  and  as  pro- 
vided for  in  this  act. 

Loans,  limit  on  and  security  for. 

Sec.  ()7.  1.  No  savings  bank  shall  loan  money  except  ou 
adequate  security  of  real  or  personal  property,  and  no  such  loan 
shall  be  made  for  a  period  longer  than  ten  years  ;  proridcd  that 
no  loans  shall  be  made  on  unsecured  notes. 

2.  No  savings  bank  shall  invest  or  loan  more  than  five  per 
centum  of  its  assets  on  any  one  bond  issue,  except  bonds  of  the 
United  States,  of  the  State  of  California,  of  the  counties,  cities 
and  counties,  cities  or  school  districts  of  this  state. 

3.  No  savings  bank  shall  loan  money  to  exceed  ninety  per 
centum  of  the  market  value  of  bonds  specified  in  subdivisions 
(a),  (h),  (c)  and  ((Z)  of  subdivision  three  of  section  sixty-one 
of  this  act,  and  no  more  than  eighty-five  per  centum  of  the  mar- 
ket value  of  bonds  specified  in  subdivision  (e)  of  subdivision 
three  of  section  sixty-one  of  this  act,  and  no  more  than  seventy- 
five  per  centum  of  the  market  value  of  bonds  specified  in  sub- 
divisions (/)  and  (g)  of  subdivision  three  of  section  sixty-one  of 
this  act,  and  no  more  than  sixty-five  per  centum  of  the  market 
value  of  personal  property  and  slocks  of  corporations  or  banks; 


488  STATUTES   AT   LARGE. 

provided,  hoioever,  that  no  loan  shall  be  made  upon  the  capital 
stock  of  any  corporation  or  bank  unless  such  corporation  or  bank 
lias  been  in  existence  for  two  or  more  years  and  has  earned  and 
paid  a  dividend  on  its  capital  stock. 

4.  No  savings  bank  shall  make  any  loan  on  the  security  of 
real  estate  except  it  be  a  first  lien  and  in  no  event  to  exceed 
sixty  per  centum  of  the  market  value  of  any  piece  of  real  estate 
to  1)6  taken  as  security,  except  for  the  purpose  of  facilitatiuij 
the  sale  of  property  owned  by  the  savings  bank;  provided,  that 
a  second  lien  may  be  accepted  to  secure  the  repayment  of  a  debt 
previously  contracted  in  good  faith. 

5.  No  savings  bank  shall  purchase,  invest  or  loan  its  capital 
or  the  money  of  its  depositors,  or  any  part  of  either,  in  mining 
shares  or  stock. 

G.  No  savings  bank  shall  hereafter  make  a  loan  secured  by 
the  stock  of  another  bank,  if  by  making  such  loan  the  total 
stock  of  such  other  bank  held  by  such  loaning  bank  as  collateral 
will  exceed  in  the  aggregate  ten  per  centum  of  the  capital  stock 
of  such  other  bank. 

Any  president  or  managing  officer  who  knowingly  consents 
to  a  violation  of  the  above  provisions  shall  be  deemed  guilty  of 
a  felonj'. 

Lawful   reserve;   deposits  witli   commercial    banks. 

Sec.  G8.  Savings  banks  must  carry  in  cash,  or  its  equiva- 
lent, an  amount  equal  to  four  per  centum  of  its  deposit  liabili- 
ties, of  which  two  per  centum  of  such  liabilities  shall  be  in  coin 
or  currency  of  standard  value  in  its  own  keeping.  The  amount 
thus  carried  shall  be  called  the  lawful  monej'  reserve. 

No  new  loan  shall  be  made  during  any  deficiency  in  the  lawful 
money  reserve. 

Deposits  with  commercial  banks  and  trust  companies,  on  open 
account,  to  facilitate  business  transactions,  as  provided  in  this 
section,  shall  be  permitted,  and  shall  not  be  construed  as  loans. 

Not  more  than  five  per  centum  of  the  deposits  of  any  savings 
bank  shall  be  deposited  with  any  one  bank. 

Savings  banks  to  be  conducted  under  provisions  of  this  act. 

Sec.  G9.  Every  savings  bank,  and  the  business  of  every  sav- 
ings department  of  every  other  bank,  must  be  conducted  under 
and  in  accordance  with  the  provisions  of  this  act. 


ItANK.S   AND   BANKING.  4S!9 

Article  III. 
Commercial  Bar.ks. 

Sioc.  SO.     Loans,   limit  of. 

81.  Loans  ;  secui-itios  of  corporations. 

82.  Capital  paid  up  required. 

S.'!.      Loans  to  directors.      Montlily   reports. 

Loans,  limit  of. 

Sec.  so.  No  commercial  bank  shall  make  any  loans  to  any 
person,  company,  corporation  or  firm  to  an  amount  exceeding  one 
tenth  part  of  the  capital  stock  of  such  bank  actually  paid  in  and 
surplus;  provided,  however,  that  a  bank  may  loan  to  any  person, 
company,  corporation  or  firm  a  sum  not  exceeding-  t\veuty-fi\e 
per  centum  of  its  capital  stock  actually  paid  in  and  surplus  upon 
security  worth  at  least  fifteen  per  centum  more  than  the  amount 
oC  its  loans:  or  it  may  loan  ten  per  centum  of  such  capital  and 
surplus  as  first  above  provided,  and  a  further  sum  not  exceeding 
fifteen  per  centum  of  such  capital  and  surplus  upon  security 
worth  at  least  fifteen  per  centum  more  than  the  amount  of  such 
loan  so  secured ;  except  that  a  commercial  bank  may  buy  from, 
or  discount,  for  any  person,  company,  corporation  or  firm,  or 
loan  upon  bills  of  lading,  warehouse  receipts  and  bills  of 
exchange,  drawn  in  good  faith  against  actual  existing  value  or 
against  commercial  or  business  paper  actually  owned  bj'  the  per- 
son negotiating  the  same. 

Loans;  securities  of  corporations. 

Sec.  si.  No  loan  shall  be  made  by  any  commercial  bank 
upon  tlie  securities  of  one  or  more  corporations,  the  payment 
of  Miiich  is  undertaken,  in  whole  or  in  part,  severally,  but  not 
jointly,  by  two  or  more  individuals,  firms,  or  coi'porations : 

(a)  If  the  borrowers  or  underwriters  be  o!)ligated  absolutely 
or  contingently  to  purchase  the  securities,  or  any  of  them,  col- 
lateral to  such  loan,  unless  the  borrowers  or  underwriters  shall 
have  paid  on  account  of  the  purchase  of  such  securities  an 
amount  in  cash,  or  its  equivalent,  equal  to  at  least  twenty-five 
per  centum  of  the  several  amounts  for  which  they  remain  obli- 
gated in  completing  the  purchase  of  such  securities; 

(6)  If  the  commercial  bank  making  such  loan  be  liable, 
directly  or  indirectly,  or  contingently,  for  (he  i-ei)ayment  of  such 
loan  or  any  part  thereof ; 


490  STATUTES   AT   LARGE. 

(c)  If  its  term,  including  any  renewal  thereof  by  agreement, 
express  or  implied,  exceed  the  period'  of  one  year ; 

(d)  Or  to  an  amount  under  any  circumstances  in  excess  of 
twenty-five  per  centum  of  the  capital  and  surplus  of  the  com- 
mercial bank  making  such  loan. 

Capital  paid  up  required. 

Sec.  82.  Every  commercial  liank  which  is  now  transacting, 
or  which  may  hereafter  transact  business,  shall  have  actually 
paid  in  a  capital  stock  of  not  less  than  twenty-five  thousand 
dollars;  and  until  said  sum  of  twenty-five  thousand  dollars 
shall  be  actually  paid  in,  the  superintendent  of  banks  shall 
not  issue  the  certificate  required  by  section  twenty-four  of  this 
act;  iirotndcd  that  nothing  herein  shall  be  construed  to  affect 
the  provisions  of  section  twenty-three  of  this  act  relative  to  the 
capital  stock  lequired  of  banks  doing  a  departmental  business. 

Loans  to  directors — Montfily  reports. 

Sec.  83.  No  commercial  bank  shall  loan  any  of  its  funds  to 
any  of  its  directors  unless  such  loan  shall  first  have  been 
approved  by  a  two-thirds  vote  of  its  board  of  directors,  on  which 
vote  the  borrowing  director  shall  not  participate,  and  the  fact  of 
making  such  loan,  the  name  of  the  director  borrowing  the  same, 
the  time  when  the  same  shall  become  due,  the  rate  of  interest 
thereon,  and  the  amount,  value,  and  character  of  the  security 
pledged  therefor,  if  any,  shall  be  forthwith  forwarded  by  the 
cashier  of  such  hank  to  the  superintendent  of  banks;  and  if  the 
superintendent  of  banks  shall  disapprove  of  such  loan,  he  shall 
inunediately  notify  such  bank  of  his  disapproval  thereof,  and 
such  bank  shall  forthwith  collect  such  loan  ;  provided,  Jiowcvcr, 
that  the  total  loans  to  all  directors  of  such  bank  shall  not  at 
any  out^  time  exceed  IliiiMy  per  cent  of  the  capital  and  surplus 
of  such  bank;  and  proridrd.  fiirlhcr,  that  each  bank  having  any 
loan  or  loans  outstanding  to  any  of  its  directors  shall  once  each 
month  report  in  vrriting  to  the  superintendent  of  banks  the 
name  of  each  director  to  whom  such  loan  is  made,  the  amount  of 
such  loan,  the  rate  of  interest  thereon,  the  time  when  the  same 
shall  fall  due,  and  the  security  pledged  therefor,  if  any.  Any 
officer  or  director  of  any  commercial  bank  violating  any  of  the 
lirovisions  of  this  s(H-(ion  shall  be  guilty  of  a  felony. 


DANKS    AND    nANfvING.  4U1 

Article  IV. 
Trust  Companies. 

Sec.    90.  Execution  of  trusts.     Compensation  for  .services. 

91.  Deposits  by  order  of  court. 

92.  Public  administrators,   deposits  by. 

93.  Executors,   etc.,   deposits  by. 

94.  Responsibilfty  for  investments. 

95.  Interest. 

96.  Deposit  with  state  treasurer. 

97.  May  mortgage  realty  to  state  treasurer. 

98.  Interest  on   state   deposits.     I^iability   of  state. 

99.  Abstracts  of  titles,  deposit  of. 

100.  Paid-up  capital  required. 

101.  Report  of  trusts  held. 

102.  Retirement  from  busines.s. 

103.  Confidential  conununications,  disclosures  of. 

101.     Word   "trust"   prohibited,    to   whom.      Effect  of  use   of 

word   "trust." 
10.'").     Investments,   laws  go\orning. 
106.      Banking   business,    requirements   for   doing. 

Execution  of  trusts — Compensation  for  services. 

Sec.  90.  Any  corporation  which  has  been  or  shall  be  incor- 
porated under  the  general  incorporation  laws  of  this  state, 
authorized  by  its  articles  of  incorporation  to  act  as  executor, 
administrator,  guardian,  assignee,  receiver,  depositary  or  trustee, 
and  having  a  capital  of  not  less  than  two  hundred  thousand 
dollars  actually  paid  in,  in  cash,  may  be  appointed  to  act  in 
such  capacity  in  like  manner  as  individuals  and  shall  be  known 
as  a  trust  company.  In  all  cases  in  which  it  is  reqtiired  that 
an  executor,  admiuistr.Ttor,  guardi,an,  assignee,  receiver,  depos- 
itary or  trustee,  shall  qualify  by  taking  and  subscribing  an  oath, 
or  in  which  an  affidavit  is  required,  it  shall  be  a  sufficient  quali- 
fication by  such  corporation  if  such  oath  shall  be  taken  and 
subscribed  or  such  affidavit  made  by  the  president  or  secretary 
or  manager  or  trust  officer  thereof,  aud  such  officer  shall  be 
liable  for  the  failure  of  such  trust  company  to  perform  any  of 
the  duties  required  by  law  to  be  performed  by  individuals  acting 
in  like  capacity  and  sub.iect  to  like  penalties ;  and  such  trust 
compnuy  shall  bo  liable  for  such  failure  to  the  full  amount  of  its 
capital  stock;  provided,  any  such  appointment  as  guardian  shall 
apply  to  (he  astiile  only,  aud  not  to  the  person.     Such  trust  com- 


402  STATUTES   AT  LARGE. 

pauy  shall  be  entitled  to  and  shall  be  allowed  proper  compensa- 
tion for  all  the  services  performed  by  them  under  the  foregoing 
provisions  of  this  act;  but  such  compensation  shall  not  exceed 
that  allowed  to  natural  persons  for  like  services. 

Deposits  by  order  of  court. 

Sec.  91.  Any  court,  having  appointed  and  having  jurisdic- 
tion of  any  executor,  administrator,  guardian,  assignee,  receiver, 
depasitary,  or  trustee,  upon  the  application  of  such  ofEcer  or 
trustee,  or  upon  the  application  of  any  person  having  an  interest 
in  the  estate  administered  by  such  officer  or  trustee,  after  notice 
to  the  other  parties  in  interest  as  the  court  may  direct,  and  after 
a  hearing  upon  such  application,  may  authorize  such  officer  or 
trustee  to  deposit  any  moneys  then  in  his  hands,  or  which  may 
come  into  his  hands  thereafter,  and  until  the  further  order  of 
said  court,  with  any  such  trust  company ;  and  upon  deposit  of 
such  money,  and  its  receipt  and  acceptance  by  such  trust  com- 
pany, the  said  officer  or  trustee  shall  be  discharged  from  further 
care  or  responsibility  therefor.  Such  deposits  shall  be  paid  out 
only  upon  the  orders  of  said  court. 

Public  administrators,  deposits  by. 

Sec.  92.  It  shall  be  lawful  for  any  public  administrator  to 
deposit  with  any  trust  company  having  not  less  than  two  hun- 
dred thousand  dollars  paid-up  capital,  doing  business  in  the 
county,  or  city  and  county,  in  which  he  is  acting  as  such  admin- 
istrator, any  and  all  moneys  of  any  estate  upon  which  he  is 
administering,  not  required  for  the  current  expenses  of  the 
administration  ;  provided  that  such  corporation  deposit  with  the 
state  treasurer  the  securities  required  by  this  act.  Such  di>posits 
shall  relieve  the  public  administrator  from  depositing  with 
the  county  treasurer  the  moneys  so  deposited  with  such  corpora- 
tion. Moneys  so  deposited  by  a  public  administrator  may  bo 
drawn,  upon  the  order  of  such  administrator,  countersigned  by 
a  judge  of  a  superior  court,  when  required  for  the  purpose  of 
administration,  or  otherwise. 

Executors,  etc.,  deposits  by. 

Sec.  93.  Whenever,  in  the  judgment  of  any  court  having 
jurisdiction  of  any  estate  in  process  of  administration  by  any 
executor,  administrator,  guardian,  assignee,  receiver,  depositary, 
or  Irustee,  and  after  such  notice  to  the  parties  in  interest  ns 
(lie  court  shall  direct,  and  after  a  hearing  on  such  application. 


BANKS   AND   BANKING.  49o 

the  said  court  may  order  the  said  officer  or  trustee  to  deposit 
with  any  such  trust  company,  for  safe-lieeping,  such  portion  or 
all  of  the  personal  assets  of  said  estate  as  it  shall  deem  proper ; 
and  thereupon  said  court  shall,  by  an  order  of  record,  reduce  liic 
bond  to  be  given  or  theretofore  given  by  such  officer  or  trustee, 
so  as  to  cover  only  the  estate  remaining  in  the  hands  of  said 
officer  or  trustee ;  and  the  property  as  deposited  shall  thereupon 
be  held  by  such  trust  company,  under  the  orders  and  directions 
of  said  court.  Any  court  having  jurisdiction  of  an  estate  being 
admibistered  by  a  public  administrator,  may  direct  such  public 
administrator  to  deposit  all  or  any  part  of  the  moneys  of  the 
estate  not  required  for  the  current  expenses  of  the  administra- 
tion, with  any  such  trust  company  doing  business  in  the  county, 
or  city  and  county,  where  such  public  administrator  is  acting. 

Responsibility  for  investments. 

Sec.  94.  Such  trust  company  shall  not  be  required  to  give 
any  bond  or  security  iu  case  of  any  appointment  hereinbefore 
provided  for,  except  as  hereinafter  provided,  but  shall  be 
responsible  for  all  investments  which  shall  be  made  by  it  of 
the  funds  which  may  be  intrusted  to  it  for  in\estmeut  by  such 
court,  and  shall  be  liable  as  natural  persons  in  like  positions 
now  are,  and  as  hereinafter  provided. 

Interest, 

Sec.  !)5.  Such  trust  company  shall  pay  interest  upon  all 
moneys  held  by  it  as  trustee,  by  virtue  of  this  act,  at  such  rate 
as  may  be  agreed  upon  at  the  time  of  its  acceptance  of  any  such 
appointment,  or  as  shall  1)0  provided  by  the  order  of  the  court. 

Deposit  with  state  treasurer. 

Sec.  96.  Each  trn.st  couipany,  before  accepting  any  such 
appointment  or  deposit,  shall  deposit  with  the  treasurer  of  state, 
for  the  benefit  of  the  creditors  of  said  trust  company,  the  sum 
of  one  hundred  thousand  dollars  ($100,000),  in  bonds  of  the 
United  States,  or  municipal  bonds  of  this  state,  or  of  any 
county,  or  city,  city  and  cuunty,  or  school  district  thereof,  or  iu 
mortgages  on  improved  and  productive  real  estate  in  this  state, 
being  first  liens  thereon,  and  the  real  estate  being  worth  at 
least  twice  the  amount  loaned  thereon  ;  said  bonds  or  mortgages 
to  be  approved  by  the  superintendent  of  banks.  The  bonds  and 
securities  so  deposited  may  be  exchanged  from  time  to  time  for 
other    securities,    receivable    as    aforesaid.     Said    bonds    of    the 


494  STATUTES   AT   LARGE. 

United  States,  or  municipal  bonds  of  tliis  state,  or  of  any  county, 
city,  city  and  county,  or  school  district  thereof,  to  be  registered 
in  the  name  of  said  treasurer,  officially,  and  all  said  securities 
to  be  subject  to  sale  and  transfer,  and  to  the  disposal  of  the 
proceeds  by  said  treasurer,  only  on  the  order  of  a  court  of  com- 
petent jurisdiction  and  as  hereinafter  provided.  The  state  shall 
be  responsible  for  the  safe  return  of  such  securities  deposited 
with  the  treasurer  of  the  state  under  this  section. 

May  mortgage  realty  to  state  treasurer. 

Sec.  07.  Any  such  trust  company  having  a  paid-up  capital 
in  excess  of  two  hundred  thousand  dollars,  may  be  permitted 
by  the  superintendent  of  banks  to  mortgage  any  improved  and 
productive  real  estate  owned  by  it,  in  excess  of  said  amount,  to 
th(>  treasui-er  of  state,  for  such  sum  as  the  said  superintendent 
of  banks  may  determine,  and  such  mortgage  may  be  deposited 
with  said  treasurer,  and  when  so  deposited  it  shall  be  included 
in  the  amount  of  securities  hereinabove  required  to  be  deposited 
with  said  treasurer  for  the  benefit  of  the  creditors  of  said  tnist 
company. 

Interest  on  state  deposits— Liability  of  state. 

Sec.  OS.  So  long  as  the  trust  company  so  depositing  shall 
continue  solvent,  it  shall  be  permitted  to  receive  from  said 
treasurer  the  interest  or  dividends  on  said  deposits,  and  when- 
ever any  trust  company  receives  trust  funds  as  such  trustee  in 
excess  of  five  hundred  thousand  dollars,  it  shall  deposit  with 
the  state  treasurer  securities  mentioned  in  section  00  of  this  act, 
to  be  approved  by  tho  superintendent  of  banks,  in  the  amount 
of  another  one  hnudn-d  thousand  dollars,  and  for  each  five  hun- 
dred thousand  dollars  of  such  trust  funds  fliei-eafter  received, 
an  additional  deposit  of  fifty  thousand  dollars  of  such  securities 
likewise  apjiroved  shall  be  made  with  the  said  slate  treasurer; 
provided,  however,  that  no  trust  company  shall  be  required  to 
deposit  more  than  one  million  dollars  of  such  securities. 
.  The  state  shall  be  responsible  for  the  safe  return  of  such 
securities  deposited  with  the  treasurer  of  the  state  under  this 
section. 

Abstracts  of  titles,  deposit  of. 

Sec.  00.  When  any  part  of  such  dcpo.sil  with  the  state  treas- 
urei-  is  made  in  bonds  and  mortgages,  it  shall  be  accompanied 
by  full  abstracts  of  title  aud  searches,  or  by  certificatos  of  title 


BANKS   AND   BANKING.  495 

issued  by  a  person,  company  or  corporation,  whose  business  or 
objects  are  to  make  searches  of  titles  and  issue  certificates  of 
titles,  and  which  said  person,  company  or  corporation  shall  be 
one  designated  or  approved  by  said  superintendent  of  banks, 
and  shall  be  examined  and  approved  by  or  under  the  direction 
of  the  said  superintendent  of  banks.  The  fees  for  an  examina- 
tion of  title  by  counsel  to  be  paid  by  the  trust  company  making 
the  deposit,  shall  not  exceed  twenty  dollars  for  each  mortgage, 
and  the  fee  for  each  appraiser,  not  exceeding  two,  besides 
expenses,  shall  be  five  dollars  for  each  mortgage. 

Paid-up  capital  required. 

Sec.  100.  Before  the  superintendent  of  banks  issues  his  cer- 
tificate to  any  trust  company,  there  must  lie  filed  in  his  office 
the  affidavit  of  a  majority  of  its  board  of  directors  or  the  persons 
named  in  said  articles  as  the  fii'st  directors  of  the  corporation 
that  at  least  two  hundred  thousand  dollars  of  the  capital  stock 
has  actually  been  subscribed  and  paid  in  to  a  person  named  in 
such  affidavit  for  the  benefit  of  the  corporation. 

Report  of  trusts  held. 

Sec.  101.  On  making  the  report  i-equired  by  the  terms  of 
this  act,  every  trust  company  shall,  in  addition  to  the  other 
facts  to  be  reported  on,  furnish  a  list  and  brief  description  of 
the  trusts  hold  by  such  corporation,  the  source  of  the  appoint- 
ment thereto,  and  the  amount  of  real  and  personal  estate  held 
by  such  trust  company  by  virtue  thereof ;  except  that  mere 
mortgage  trust,  wherein  no  action  has  been  taken  by  such  cor- 
poration, shall  not  Iie  included   in  such  statement. 

Retirement  from    business. 

Sec.  102.  Any  I  I'ust  coniimny  \\liicli  desires  lo  retire  from 
business  under  tliis  act,  shall  furnish  to  the  su|)erintendent  of 
banks  satisfactory  evidence  of  its  release  and  discharge  from 
all  the  obligations  and  trusts  hereinbefore  provided  for ;  where- 
upon he  shall  revoke  his  certificate  to  such  trust  company,  and 
thereupon  the  treasurer  of  state  shall  return  to  said  trust  com- 
pany all  its  securities. 

Confidential  communications,  disclosures  of. 

Si;('.  lO.*].  I'^xcejjt  as  herein  otl!er\\ise  provided,  any  (rust 
(•om[)any  exercising  the  i)0wers  and  performing  (he  duties  pro- 
vided  for   in   this  act,  shall  keep   inviolate   all   communications 


49G  STATUTES    AT   LAIiGE. 

couMdeuLially  made  to  it  touching  the  existence,  condition,  man- 
asemeut  and  administration  of  any  trusts  confided  to  it;  and 
no  creditor  or  stockholder  of  any  such  trust  company  shall  l)c 
entitled  to  disclosure  of  any  such  communication  ;  proinded,  lioio- 
cvrr,  that  the  president,  manager,  and  secretary  of  such  trust 
company  shall  be  entitled  to  knowledge  of  such  communication  ; 
(iihI  provided,  further,  that  in  any  suit  or  proceeding  touching 
the  existence,  condition,  management  or  administration  of  such 
trust,  the  court  wherein  tlie  same  is  pending  may  require  dis- 
closure of  any  such  communication. 

Word  "trust"  prohibited,  to  whom — Effect  of  use  of  word 
"trust." 

J^EC.  104.  The  use  of  the  word  "trust"  in  combination  with 
or  in  connection  with  the  woi'd  "company,"  "corporation," 
"incorporation,"  "association,"  "society,"  "organization,"  or 
"syndicate,"  is  horebj'  prohibited  to  all  persons,  firms,  associa- 
tions, companies  or  corporations  other  than  corporations  pro- 
vided (or  ])y  this  act.  E\ery  person,  firm,  asoseiation,  company, 
or  coi'iioration  wliicli  uses  the  word  "trust"  in  combination 
with  or  in  connection  with  the  word  "company,"  "corporation," 
"incorporation."  "association,"  "society,"  "organization,"  or 
"syndicate,"  as  the  name  under  which  business  i.s  done  or 
transacted,  shall  be  subject  to  the  provisions  of  this  act  and  to 
the  supervision  of  the  superintendent  of  banks.  Any  person, 
firm,  association,  company,  or  corporation  making  use  of  the 
word  "trust"  in  combination  or  in  connection  with  the  word 
"company,"  "corporation,"  "incorporation,"  "association,"  "so- 
ciety," "organization,"  or  "syndicate,"  in  the  manner  herein- 
above mentioned,  in  the  transaction  of  business,  and  not  subject 
lo  (he  provisions  of  this  act  and  the  supervision  of  tlio  superin- 
t(>n(lent  of  banks,  shall  be  guilty  of  a  misdemeanor. 

No  corporation  hereafter  formed  shall  use  the  word  "trust" 
or  "trustee"  as  a  part  of  its  corporate  name  unless  it  shall  be 
authorized  by  its  articles  of  incorporation  to  act  as  executor, 
administrator,  guardian,  assignee,  receiver,  depositary  or  trus- 
tee ;  nor  shall  any  corporation  hereafter  formed  accept  or  exe- 
cute any  trust  mentioned  in  this  act,  unless  it  shall'  have 
.  com|iliod  with  (lie  ])rovi.sions  of  this  act. 

Investments,   laws  governing. 

Six;.  105.  l']very  trust  comiiany  sliall  iini'st  its  capital  and 
trust   funds  received  by  it  in  accordance  with  the  laws  relative 


BANKS   AND   BANKING.  497 

to  the  investment  of  funds  deposited  with  savings  banks,  unless 
a  specific  agreement  to  the  contrary  is  made  l)etweeu  the  trust 
company  and  the  party  creating  the  trust. 

Banking  business,  requirements  for  doing. 

Sec.  10<!.  Every  trust  company  desiring  to  do  or  doing  a 
commercial  banking  business  or  a  savings  bank  business,  or 
both,  in  addition  to  its  trust  business,  shall  have  paid  up  in 
cash  the  capital  as  provided  in  section  twenty-three  of  this  act. 
Such  capital  for  each  such  department  shall  be  increased  from 
time  to  time  in  the  same  manner  and  to  the  same  extent  as 
though  such  bank  were  conducting  separate  banks  instead  of 
separate  departments. 

Every  trust  company  doing  a  departmental  business  shall 
comply  with  the  provisions  of  this  act  governing  each  of  such 
departments  as  to  its  deposits,  reserves,  investments  and  loans. 


Article  V. 

State   Bantcing   Department. 

Sec.  120.      Superintendent,    appointment   and   qualifications.      Sal- 
ary.    Bond. 

121.  Appointees.     Employment  of,  and  compensation.     Bond. 

122.  Principal  office. 

123.  State  banking  fund,   how  created  ;   whei-e  deposited. 

124.  Inspection    of   banks.      Powei's    of    examiner.      ]<^oi-eign 

banks.     Doubtful  securitie.«. 

125.  Examiner,  oath  of  office  of. 

126.  Neglect  of  duty. 

127.  Transaction  of  business,  certificate  required  for.     Fee. 

128.  Stockholders,    fitness   of.      Certificate   of   autliorization. 

129.  Reports. 

130.  Same. 

131.  Call  for  reports. 

132.  Publication   of  statement.      Shall    show.   what. 

133.  Impairment  of  capital. 

134.  Conduct  of  business  in  un.safe  manner.     Order  to  show 

cause. 

135.  Rule  governing  action. 

136.  Superintendent  may  take  possession,  when.     Notice  to 

debtors.     Resumption  of  business.     Ijiquidation. 

137.  Dissolution  of  bank.     Escheat  of  unclaimed  funds. 

138.  Reports,  failure  to  make. 


498  STATUTES   AT  LARGE. 

Sec.  139.     Directors    of   banks,    duties    of.      Report    of    director.s, 
wliat  to  contain. 
14(;).     Report  of  superintendent  to  governor. 

141.  Weelily   bulletin   to   be  posted   by   superintendent,    and 

items  tliereof.     File  of  bulletins. 

142.  Offlcial   reports,  prima  facie  evidence. 

143.  Neglect  of  duty  by  superintendent. 

144.  Actions,   duty  of  attorney   general. 
14  5.     Construction  of  act. 

14G.     Conflicting  laws  repealed. 
14  7.      Time   act    shall    take    effect. 

Superintendent,  appointment  and  qualifications — Salary — Bond. 

Sec.  120.  There  is  hereby  created  a  state  baukiug  depart- 
ment. The  chief  officer  of  such  department  shall  be  the  super- 
iutondent  thereof,  and  be  known  as  the  superintendent  of  banks. 
He  shall  be  appointed  by  the  governor,  and  shall  hold  his  office 
for  a  term  of  four  years,»or  until  hi^j  successor  shall  have  been 
appointed  and  qualified.  No  person  shall  be  appointed  super- 
intendent of  banks  who  has  not  had  active  banking  experience, 
either  as  executive  officer  or  director  of  some  commercial  bank, 
savings  bank  or  trust  company,  at  least  one  half  of  which 
experience  has  been  had  in  this  state.  He  shall  not,  either 
directly  or  indirectly,  be  interested  in  any  commercial  bank, 
savings  bank  or  trust  company,  or  as  an  individual  banker.  He 
shall  receive  an  annual  salary  of  ten  thousand  dollars,  to  be  paid 
monthly  out  of  the  state  treasury  on  a  warrant  of  the  controller. 
He  shall,  within  fifteen  days  from  the  time  of  notice  of  his 
appointment,  take  and  subscribe  to  the  constitutional  oath  of 
office,  and  file  the  same  in  the  office  of  the  secretary  of  state, 
and  execute  to  the  people  of  the  state  a  bond  in  the  penal  sum  of 
fifty  thousand  dollars,  with  corporate  surety  or  two  or  more 
siu-eties  to  be  approved  by  the  governor  of  the  state,  conditioned 
for  the  faithful  discharge  of  the  duties  of  his  office. 

Appointees — Employment  of,  and  compensation — Bond. 

Sec.  321.  'i'he  superinlondent  of  banks  shall  employ  a  chief 
deputy,  attorney  and  such  clerks  and  examiners  as  he  may  need 
to  discharge  in  a  proper  manner  the  duties  imposed  upon  him 
by  law,  none  of  which  examiners  or  clerks  or  attorney  shall  be 
interested  in  any  bank  in  this  state  as  director,  stockholder, 
officer  or  employee  ;  they  shall  perform  such  duties  as  he  shall 
nssign  io  them.  He  shall  fix  the  compensation  of  the  attorney, 
clerks,  and  examiners,  which  compensation  shall  be  paid  monthly, 


BANKS    AND    BANKING.  499 

on  his  certificate  aud  on  the  wai-rant  of  the  controller,  out  of  the 
state  treasury.  The  chief  deputy  shall,  within  fifteen  days  from 
the  time  of  his  appointment,  take  aud  subscribe  to  the  con- 
stitutional oath  of  office,  and  file  the  same  in  the  office  of  the 
secretary  of  state,  and  his  compensation  shall  be  four  thousand 
dollars  per  annum ;  provided,  Jioivever,  that  the  total  expendi- 
ture provided  for  in  this  act  shall  not  exceed  seventy-five  thou- 
sand dollars  per  annum. 

No  person  shall  be  appointed  a  chief  deputy  who  has  not  had 
at  least  three  years'  active  banking  experience,  either  as  an 
executive  officer  or  employee  of  some  bank  in  this  state.  In 
case  of  the  absence  or  inability  to  act,  or  vacancy  in  the  office  of 
superintendent  of  banks  for  thirty  consecutive  days,  the  chief 
deputy  shall  execute  to  the  people  of  the  state  a  bond  in  the 
penal  sum  of  fifty  thousand  dollars,  with  corporate  surety  or  two 
sureties  to  be  approved  by  the  controller  and  treasurer  of  the 
state,  conditioned  for  the  faithful  discharge  of  the  duties  of  the 
sui)erintendent  while  such  deputy  acts  as  superintendent,  and 
ujion  filing  such  bond  such  deputy  shall  have  all  the  power  and 
duties  of  superintendent  of  banks,  until  the  inability  of  the 
superintendent  shall  be  removed,  or  until  a  new  superintendent 
of  banks  shall  have  been  appointed  by  the  governor.  No  super- 
intendent of  banks,  chief  deputy  or  bank  examiner  shall  be  or 
shall  become  indebted,  directly  or  indirectly,  either  as  borrower, 
endorser,  surety,  or  guarantor  to  any  bank  under  his  supervision 
or  .subject  to  his  examination. 

Principal  office. 

Sec.  122.  The  superintendent  of  banks  shall  have  his  prin- 
cipal office  in  the  city  of  San  Francisco,  and  may  also  have  suit- 
able rooms  in  the  city  of  Los  Angeles,  wherein  to  conduct  the 
business  of  the  state  banking  department.  The  superintendent 
shall,  from  time  to  time,  obtain  the  necessary  furniture,  sta- 
tionery, fuel,  lights,  and  other  proper  conveniences  for  the 
transaction  of  such  business  ;  the  expense  of  which  shall  be  paid 
out  of  the  state  treasury  on  the  certificate  of  the  superintendent 
and  the  warrant  of  the  controller. 

State  banking  fund,  how  created;  where  deposited. 

Sec.  123.  A  fund  is  hereby  created,  to  be  known  as  the  state 
banking  fund,  and  out  of  said  fund  shall  he  i)aid  all  the  expenses 
incurred  in  and  about  the  conduct  of  the  business  of  the  banking- 
department,    including    the   salary   of   the  superintendent,   chief 


500  STATUTES   AT   LAKGE. 

deputy,  attorney,  clerks  and  examiners,  traveling  expenses, 
furnishing  of  rooms  and  rent.  Each  bank  shall  pay  annually  its 
share  of  the  total  amount  of  the  salaries  and  expenses  of  the 
banking  department,  to  be  determined  by  the  proportion  which 
the  deposits  of  any  such  bank  bear  to  the  aggregate  deposits  of 
nil  such  banks  receiving  certificates  of  authorization  from  the 
superintendent  of  banks,  as  shown  by  the  last  report  of  such 
bnnk  to  the  superintendent  of  banks. 

All  moneys  collected  or  received  by  the  superintendent  of 
bunks,  under  and  by  virtue  of  the  provisions  of  this  act,  shall  be 
by  him  delivered  to  the  treasurer  of  the  state,  who  shall  deposit 
the  same  to  the  credit  of  said  banking  fund,  and  the  unexpended 
lialances  of  all  moneys  heretofore  paid  into  the  state  treasury  by 
any  of  the  bank  commissioners  shall  be  retained  and  become  a 
part  of  said  fund.  If  any  such  bank  shall  fail  to  pay  such 
charges  as  are  herein  required,  the  superintendent  shall  forth- 
with cancel  the  certificate  of  said  bank. 

Inspection  of  banks — Powers  of  examiner — Foreign  banks — 
Doubtful  securities. 

Sec.  124.  Every  bank  shall  be  subject  to  the  inspection  of 
the  superintendent  of  banks.  The  superintendent  of  banks,  the 
chief  deputy,  or  some  competent  person  or  persons  to  be 
appointed  by  the  superintendent  of  Ijanks,  to  be  known  as  exam- 
iners, shall  visit  and  examine  every  bank,  other  than  a  savings 
bank,  at  least  twice  in  each  year,  and  every  savings  bank  at 
least  once  in  each  year.  On  every  such  examination  inquiry 
shall  be  made  by  him  as  to  the  condition  and  resources  of  the 
bank,  the  mode  of  conducting  and  managing  its  affairs,  the 
action  of  its  directors,  the  investment  and  disposition  of  its 
fuuds,  the  safety  and  prudence  of  its  management,  the  security 
afforded  to  those  by  whom  its  engagements  are  held  and  whether 
the  requirements  of  its  articles  of  incorporation  and  the  law 
have  been  complied  with  in  the  administration  of  its  affairs,  and 
as  to  such  other  matters  as  the  superintendent  may  prescribe. 
He  shall  have  power  in  like  manner  to  examine  every  bank  when- 
ever, in  his  judgment,  its  condition  and  management  is  such  as 
to  render  an  examination  of  its  affairs  necessary  or  expedient. 

He  shall  also  have  power  to  examine,  or  cause  to  be  examined, 
every  agency  located  in  this  state  of  any  foreign  bank  or  banking 
corporation,  for  the  purpose  of  ascertaining  whether  it  has  com- 
plied with  the  laws  of  the  state,  and  for  such  other  purposes  and 
as  to  such  other  matters  as  the  superintendent  may  prescribe. 


BANKS   AND   BANKING.  501 

The  superintendeDt,  chief  deputy,  and  every  such  examiner 
shall  have  the  power  to  administer  an  oath  to  any  person  whose 
testimony  he  may  require  on  the  examination  of  any  bank,  or  on 
the  examination  of  any  agency  of  any  foreign  bank  or  banking 
corporation,  and  to  compel  appearance  and  attendance  of  any 
such  person  for  the  purpose  of  any  such  examination.  The 
result  of  such  examination  shall  be  certified  by  the  persons 
funking  the  examination  on  the  records  of  the  bank  examined. 

When  a  bank  shall  have  been  examined  by  any  examiner,  and 
he  finds  securities  therein  which  are,  in  his  judgment,  of  doubt- 
ful value,  he  shall  report  the  same  to  the  superintendent  of 
banks,  who  thereupon  shall  be  authorized  to  employ  appraisers 
to  appraise  said  securities,  at  a  compensation  to  be  fixed  by  the 
superintendent  of  banks. 

Examiner,  oath  of  office  of. 

Sec.  125.  Evei-y  examiner  appointed  by  the  superintendent 
of  banks  shall,  before  entorinj;  ujion  the  discharge  of  his  duties, 
take  the  constitutional  oath  of  office  and  cause  the  same  to  be 
filed  in  the  office  of  the  secretary  of  state.  No  such  examiner 
shall  be  appointed  receiver  of  any  bank  whose  liooks,  papers  and 
aflairs  he  shall  have  examined  pursuant  (o  his  appointment. 

Neglect  of  duty. 

Sec.  1"_*(;.  If  the  chief  deputy  or  any  examiner  shall  lia\e 
knowledge  of  the  insolvency  or  unsafe  condition  of  any  bank 
mentioned  in  this  act,  and  that  it  is  unsafe  or  inexpedient  to 
permit  said  bank  to  continue  business,  and  shall  neglect  to  forth- 
with report  such  fact  in  writing  over  his  signature  to  the  super- 
intendent of  banks,  he  shall  be  guilty  of  felony. 

Transaction  of  business,   certificates  required  for — Fee. 

Sec.  127.  No  bank  shall  transact  any  business  in  tliis  stut(! 
without  the  written  appro\-al  of  the  superintendent  of  banks,  and 
without  his  written  certificate  stating  that  it  has  complied  with 
the  provisions  of  this  act,  and  with  all  the  re<|uirements  of  law, 
and  that  it  is  authorized  to  transact,  within  this  state,  the  busi- 
ness specified  therein,  and  that  the  requisite  capital  has  been  in 
good  faith  subscribed  and  paid  up  in  cash  or,  if  organized  with- 
out capital  stock  that  it  has  accumulated  the  re(juisite  surplus 
or  reserve  fund.  Before  issuing  such  certificate  the  supcrin- 
(<>ndent  of  banks  shall  examine,  or  cause  an  examination  Id  be 
made,  in  order  to  ascertain  whether  (he  requisite  capital  uf  .sucli 


502  STATUTES  AT  LARGE. 

bank  has  been  paid  up  in  cash  or  the  requisite  reserve  or  surplus 
fund  has  beeuv  aceumuhited.  The  superintendent  of  banks  shall 
not  authorize  such  bank  to  commence  business  until  it  appears 
from  such  examination,  or  other  evidence  satisfactory  to  him. 
that  the  requisite  capital  has  been,  in  good  faith,  subscribed  and 
paid  in  in  cash,  or  that  the  requisite  surplus  or  reserve  fund 
has  been  accumulated  or  paid  in  in  cash,  and  until  such  bank 
shall  have  paid  a  fee  of  fifty  dollars.  Every  person  who  neglects 
to  comply  with  any  requirement  of  this  section  shall  be  guilty  of 
a  misdemeanor. 

Stockholders,  fitness  of — Certificate  of  autliorization. 

Sec.  128.  When  the  articles  of  incorporation  shall  have  been 
filed  with  the  secretary  of  state,  and  application  made  for  the 
issuance  of  a  certificate  to  do  business  as  a  bank,  the  superin- 
tendent of  banks  shall  ascertain,  from  the  best  sources  of  infor- 
mation at  his  command,  whether  the  character  and  general 
fitness  of  the  persons  named  as  stockholders  are  such  as  to  com- 
mand the  confidence  of  the  community  in  which  such  bank  is 
proposed  to  be  located,  and,  if  so  satisfied,  he  shall,  within  sixty 
days  after  such  application  has  been  made  to  him,  issue,  under 
his  hand  and  official  seal,  the  certificate  of  authoi-ization  required 
by  this  act.  The  superintendent  of  banks  shall  transmit  such 
certificate  of  authorization  to  the  county  clerk  of  such  county, 
who  shall  file  the  same;  the  superintendent  of  banks  shall  also 
file  a  duplicate  of  such  certificate  in  his  own  oflice. 

Reports. 

Sec.  129.  Every  bank  doing  a  departmental  business  shall 
render  to  the  superintendent  of  banks  for  each  department  con- 
ducted by  it,  a  separate  report  showing  in  detail  as  required  by 
section  one  hundred  thirty  of  this  act.  the  actual  financial  con- 
dition of  such  department  and  shall  at  the  time  of  furnishing 
said  report  separately  publish  the  statement  for  each  department 
as  provided  in  section  one  hundred  thirty-two  of  this  act. 

Same. 

Sec.  130.  Every  bank  doing  business  in  this  state  shall, 
whenever  required  by  the  superintendent  of  banks,  make  a  report 
in  writing  to  him.  verified  by  the  oath  of  its  president  and  its 
secretary  or  cashier,  or  two  principal  officers.  Such  reports 
shall  show  the  actual  financial  condition  of  the  bank  making  the 
report,  at  the  close  of  any  past  day  specified  by  the  superin- 
tendent, and  shall  specify  the  following: 


BANKS    AND    BANKING.  503 

1.  The  amount  of  its  capital  stock  and  the  number  of  shares 
into  which  it  is  divided,  or,  if  not  incorporated,  the  amount  of 
capital  actually  paid  in,  and  by  whom. 

-2.  The  names  of  the  directors  and  the  number  of  shares  of 
stock  held  by  each,  or,  if  not  incorporated,  the  names  of  each 
member  of  the  firm  and  the  amount  of  capital  paid  in  by  each. 

3.  The  total  amount  of  capital  actually  paid  up  in  money, 
and  the  total  amount  of  contingent  and  other  reserve  funds, 
if  any. 

4.  The  total  amount  due  the  depositors. 

5.  The  total  amount  and  character  of  any  other  liabilities  it 
may  have. 

(5.  The  amount  at  which  the  lot  and  building  occupied  by  the 
bank  for  the  transaction  of  its  regular  business  stands  debited 
on  its  books,  together  with  the  market  value  of  all  other  real 
estate  held,  whether  acquired  in  settlement  of  loans  or  other- 
wise ;  the  amount  at  which  it  stands  debited  on  the  bank  books, 
in  what  counties  situated,  and  in  what  name  the  title  is  vested, 
if  not  in  the  name  of  the  bank  itself. 

7.  The  amount  loaned  on  real  estate,  specifying  the  amount 
secured  on  real  estate  in  each  county  separately  ;  also  specifying 
the  name  of  the  person  in  whose  name  the  property  is  held  in 
trust  or  as  security,  in  case  it  is  held  in  any  name  other  than 
that  of  the  bank  and  the  instrument  creating  the  security  does 
not  itself  disclose  the  name  of  the  bank. 

S.  The  amount  invested  in  bonds,  designating  the  name  and 
amount  of  each  particular  kind. 

J).  The  amount  loaned  on  stocks  and  bonds,  designating  each 
particular  class  and  the  amount  thereof. 

10.  The  amount  of  money  loaned  on  other  securities,  wilh  a 
particular  designation  of  each  class  and  the  amount  loaned  on 
each. 

11.  The  actual  amount  of  money  on  hand  or  deposited  in  any 
other  bank  or  place,  with  the  name  of  the  place  where  deposited 
and  the  amount  in  each  place. 

12.  Any  other  property  held,  or  any  amount  of  money  loaned, 
deposited,  invested  or  placed,  not  otherwise  herein  enumerated, 
and  the  place  where  situate  and  the  value  of  said  property,  and 
the  amount  so  loaned,  deposited  or  placed,  and  any  other  infor- 
mation he  may  request  relative  lo  the  conduct  and  affairs  of  such 
bank. 

The  oaths  of  llie  ofticers  and  the  statements  alio\e   re(inir<-(l 


504  STATUTES    AT   LARGE. 

shall  state  that  they  and  each  of  them  have  a  persoual  kuowl- 
edge  of  the  matters  therein  contained,  and  that  they  believe 
every  allegation,  statement,  matter,  and  thing  therein  contained 
is  true.  Any  willful  false  statement  in  the  premises  shall  be  per- 
jury and  shall  be  punished  as  such. 

Call  for  reports. 

Sec.  131.  The  superintendent  of  banks  shall  call  for  reports 
siKH'ified  by  the  previous  section,  at  least  tnroe  times  each  year, 
and  shall  call  for  such  rei)orts  as  near  as  possible  upon  the  sam(> 
days  as  those  designated  by  the  comptroller  of  the  currency  of 
the  United  States  for  reports  of  national  banking  associations. 

Publication  of  statement — Sliall  show  what. 

Sec.  132.  At  tiie  time  of  furnishing  such  report  to  the  super- 
intendent of  banks,  every  bank  shall  also  publish  a  condensed 
statement  of  its  financial  condition,  at  least  once,  in  some  news- 
paper of  general  circulation,  published  in  the  city  or  town  where 
its  principal  place  of  business  is  located,  and,  if  no  paper  is 
published  in  such  town,  then  in  some  newspaper  of  general 
circulation  in  the  county  where  its  principal  jilace  of  business  is 
located.  Such  published  statement  shall  show  tlic  total  amount 
of  loans,  the  total  amount  of  overdrafts,  the  total  amount  invested 
in  I)onds  and  other  securities,  the  total  amount  due  from  banks, 
the  total  amount  of  checks  and  other  cash  items,  the  total 
amount  of  cash  on  hand,  capital  paid  in,  surplus  funds; 
undivided  profits,  less  expenses  and  taxes  j^aid;  due  to  other 
banks  and  bankers,  due  to  trust  companies  and  savings  banks  ; 
individual  deposits  subject  to  check;  demand  certificates  of 
deposit;  time  deposits;  certified  cheeks;  cashier's  checks  out- 
standing; and  such  other  items  as  will  sliow  llu-  ncliinl  (innncia' 
condition  of  the  hank  making  the  n-pdrt. 

Impairment  of  capital. 

Sec.  133.  M'henevcr  llic  supcrinleudent  of  lianks  siiall  have 
reason  to  believe  that  the  capital  of  any  bank  is  reduced  by 
impairment  or  otherwise  below  the  amount  rccpiired  by  law  or 
by  its  articles  of  incorporation,  he  may  require  such  bank  to 
make  good  the  deficiency  within  sixty  days  after  the  date  of  such 
requisition.  He  may  examine  or  cause  to  be  examined  any 
such  bank  to  ascertain  the  amount  of  such  impairment  or  reduc- 
tion of  capital  and  wlidlirr  tin-  il<>ficiriicy  has  been  mad(>  good 
as  required  by  him. 


HANKS   ANn   nANKTNfl.  ilOf) 

Conduct  of  business  in   unsafe  mannei — Order  to  show  cause. 

Sec.  134.  If  it  shall  appear  to  the  superiutendeut  of  banks 
that  any  bank  has  violated  its  articles  of  incorporation,  or  any 
law  binding  upon  it,  he  must,  by  an  order  niuler  his  hand  and 
official  seal,  which  seal  must  be  adopted  by  him,  addressed  to 
such  bank,  direct  the  discontinuance  of  such  violation ;  or,  if  it 
shall  appear  to  the  superintendent  of  banks  that  such  bank  is 
conducting  business  in  an  luisafe  or  injurious  manner,  he  nmst  in 
like  manner  direct  the  discontinuance  of  such  unsafe  or  injurious 
practices.  Such  order  shall  require  such  bank  to  show  cause, 
before  the  superintendent  of  banks,  at  a  time  and  place  to  be 
fixed  by  him,  why  said  order  should  not  be  observed.  If  upon 
such  hearing  it  shall  appear  to  the  superintendent  of  banks  that 
such  bank  is  conducting  business  in  an  unsafe  or  injurious 
manner,  or  is  violating  its  articles  of  incorporation,  or  any  law 
of  this  state,  then  the  superintendent  of  banks  shall  make  such 
order  of  discontinuance  final,  and  such  bank  shall  immediately 
discontinue  all  practices  named  in  such  order  by  the  superin- 
tendent of  banks.  Such  bank  shall  have  ten  days  after  any  such 
order  is  made  final  in  which  suit  may  he  commenced  to  restrain 
enforcement  of  such  order,  and  unless  such  action  be  so  com- 
menced and  enforcement  of  said  order  be  enjoined  within  ten 
days,  by  the  court  in  which  such  suit  is  brought,  then  such  hank 
shall  comply  with  such  order ;  and,  in  the  event  of  its  failure  so 
to  do,  then  the  superintendent  of  banks  .shall  have  power  to  take 
immediate  charge  and  control  of  said  bank,  and  liquidate  its 
affairs  in  the  manner  provided  in  this  act  foi'  tlie  liquidation  of 
banks. 

Rule  governing  action. 

Sec.  135.  In  any  such  action,  no  damage  may  be  awarded, 
but  the  action  otherwise  shall  be  commenced,  tried  and  deter- 
mined according  to  the  provisions  of  the  Code  of  Civil  Pro- 
cedure of  California. 

Superintendent  may  take  possession,  when — Notice  to  debtors — • 
Resumption  of  business — Liquidation. 
Sec.  136.  Whenever  the  superintendent  of  banks  shall  ha\<' 
reason  to  conclude  that  any  bank  is  in  an  unsound  or  unsafe 
condition  to  transact  the  business  for  which  it  is  organized,  or 
that  it  is  unsafe  or  inexpedient  for  it  to  continue  business,  the 
superintendent  of  banks  may  forthwith  take  possession   of  the 

22— CL 


">UG  STATUTES   AT    LARGE. 

property  and  business  of  such  bank,  and  retain  such  possession 
until  such  bank  shall  resume  business,  or  its  affairs  be  finally 
liquidated,  as  herein  provided. 

On  taking  possession  of  the  property  and  business  of  any  such 
bank,  the  superintendent  of  banks  shall  forthwith  give  notice  in 
writing  of  such  fact  to  any  and  all  corporations  and  individuals 
holding  or  in  possession  of  any  of  the  assets  of  such  bank. 

No  bank,  corporation  or  individual,  knowing  of  such  taking 
possession  by  the  superintendent  of  banks,  or  notified  as  afore- 
said, shall  have  a  lien  or  charge  for  any  payment,  advance  or 
clearance  thereafter  made,  or  liability  thereafter  incurred  against 
any  of  the  assets  of  the  bank  of  whose  property  and  business  the 
superintendent  of  banks  shall  have  taken  possession  as  aforesaid. 
Such  bank  may,  with  the  consent  of  the  superintendent  of  banks, 
resume  business  upon  such  conditions  as  may  be  approved  by 
him. 

Upon  taking  possession  of  the  property  and  business  of  such 
bank,  the  superintendent  of  banks  is  authorized  to  collect 
moneys  due  to  such  bank,  and  to  do  such  other  acts  as  are 
necessary  to  conserve  its  assets  and  business,  and  shall  proceed 
to  li(|uidate  the  affairs  thereof  as  hereinafter  provided. 

The  superintendent  of  banks  shall  collect  all  debts  due  and 
claims  belonging  to  it,  and  upon  the  order  of  the  superior  court 
may  sell  or  compound  all  bad  or  doubtful  debts,  and  on  like 
order  may  sell  all  real  and  personal  property  of  such  bank  on 
such  terms  as  the  court  shall  direct ;  and  may,  if  necessary  to 
pay  the  debts  of  such  bank,  enforce  individual  liability  of  the 
stockholders  by  action  to  be  brought  within  three  years  after 
the  date  of  his  taking  possession  of  the  affairs  of  such  bank. 

The  superintendent  of  banks  may,  under  his  hand  and  official 
seal,  appoint  one  or  more  special  deputy  superintendents  of 
banks,  as  agent  or  agents,  to  assist  him  in  the  duty  of  liquida- 
tion and  distribution,  the  certificate  of  appointment  to  be  filed  in 
the  office  of  the  superintendent  of  banks,  and  a  certified  copy  in 
the  office  of  the  clerk  of  the  county  in  which  the  principal  office 
of  such  bank  is  located. 

The  superintendent  of  banks  may,  from  time  to  time,  author- 
ize a  special  deputy  superintendent  to  perform  such  duties 
connected  with  such  liquidations  and  distribution  as  the  super- 
intendent of  banks  may  deem  proper.  The  superintendent  of 
banks  may  employ  such  counsel,  and  procure  such  expert  assist- 
ance and  advice  as  may  be  necessary  in  the  liquidation  and  dis- 


r.ANKS    ANO   P.ANTKINf!.  507 

tribution  of  the  Jissets  of  such  bank,  aud  may  retain  such  ofiicers 
or  employees  of  such  bank  as  lie  may  deem  necessary.  The 
superintendent  of  Isauks  shall  require,  from  a  special  deputy 
superintendent  and  from  such  assistants,  such  security  for  the 
faithful  discharge  of  their  duties  as  he  may  deem  proper. 

The  superinteadent  of  banks  shall  cause  notice  to  be  given  by 
advertisement  in  such  newspapers  as  he  may  direct,  weekly,  for 
three  consecutive  mouths,  calling  on  all  persons  who  may  have 
claims  against  such  bank,  to  present  the  same  to  the  superin- 
tendent of  banks,  and  make  legal  proof  thereof,  at  a  place  and 
within  a  time  not  more  than  six  mouths  after  the  last  day  of 
publication,  to  be  therein  specified. 

The  superintendent  of  banks  shall  mail  a  copy  of  such  notice 
to  all  persons  whose  names  appear  as  creditors  upon  the  books 
of  the  bank.  If  the  superintendent  of  banks  doubts  the  justice 
aud  validity  of  any  claim,  he  may  reject  the  same  and  serve 
notice  of  such  rejection  upon  the  claimant,  either  by  mail  or 
personally.  An  affidavit  of  the  service  of  such  notice  shall  be 
prima  facie  evidence  thereof,  and  shall  be  filed  with  the  super- 
intendent of  banks.  An  action  upon  a  claim  so  rejected  must  be 
brought  within  six  months  after  such  service.  Claims  presented 
after  the  expiration  of  the  time  fixed  in  the  notice  to  creditors 
shall  be  entitled  to  share  ratably  in  the  distribution  to  the  extent 
of  the  assets  in  the  hands  of  the  superintendent  of  banks, 
equitably  applicable  thereto. 

Upon  taking  possession  of  the  property  and  assets  of  such 
bank,  the  superintendent  of  banks  shall  make  an  inventory  of  the 
assets  of  such  bank  in  duplicate,  one  to  be  filed  in  the  office  of 
the  superintendent  of  banks,  and  one  in  the  office  of  the  clerk  of 
the  county  in  which  the  principal  office  of  such  bank  is  located ; 
upon  the  expiration  of  the  time  fixed  for  tlie  presentation  of 
claims,  the  superintendent  of  banks  shall  make  in  duplicate  a 
full  aud  complete  list  of  the  claims  presented,  including  and 
specifying  such  claims  as  have  been  rejected  by  him,  one  to  be 
filed  in  the  office  of  the  superintendent  of  banks,  and  one  in  the 
office  of  the  clerk  of  the  county  in  which  the  principal  office  of 
such  bank  is  located ;  such  inventory  and  list  of  claims  shall  be 
open  at  all  reasonable  times  for  inspection. 

The  compensation  of  the  special  deputy  superintendents,  coun- 
sel, and  other  officers  and  assistants,  aud  all  expenses  of  super- 
vision and  liquidation,  shall  be  fixed  liy  the  superintendent  of 
banks  on  notice  to  such  bank,  and  shall  upon  his  certificafe  l)e 
paid  out  of  the  funds  of  such  bank  in  his  hands. 


nOS  STATTTTKS    AT    T.ATJCiE. 

The  sums  collected  by  the  superintendent  of  banks  shall,  from 
time  to  time,  be  deposited  in  one  or  more  banks  in  this  state, 
subject  to  examination  by  the  superintendent  of  banks. 

At  any  time  after  the  expiration  of  the  date  fixed  for  the 
presentation  of  claims,  the  superintendent  of  banks  may,  out  of 
the  fluids  remaining-  in  his  hands  after  the  payment  of  expenses, 
declare  one  or  more  dividends,  and  after  the  expiration  of  one 
year  from  the  date  of  first  publication  of  notice  to  creditors  he 
may  declare  a  final  dividend. 

Objection  to  any  claim  not  rejected  by  the  superintendent  of 
banks  may  be  made  by  any  party  interested,  by  filing  a  copy  of 
such  objection  with  the  superintendent  of  banks,  who  shall  pre- 
sent the  same  to  the  superior  court  of  the  county  in  which  such 
bank  has  its  principal  place  of  business,  with  a  petition  that  said 
court  pass  upon  the  validity  of  such  claims;  and  such  court  shall 
thereupon,  upon  such  notice  to  the  party  presenting  the  same, 
and  to  the  superintendent  of  banks,  as  the  court  may  deem 
proper,  accept  or  leject  said  claim,  and  the  superintendent  of 
banks  shall  observe  the  order  of  the  court  in  that  regard ;  pro- 
vided, hoicevcr,  that  should  the  claim  be  rejected,  such  rejection 
shall  not  conclude  the  claimant  from  bringing  an  action  upou 
such  claim  within  six  months  after  such  rejection. 

Upon  the  petition  of  the  superintendent  of  banks,  such  court 
may  make  proper  provisions  for  unclaimed  deposits. 

Whenever  any  such  bank,  of  whose  property  and  business  the 
superintendent  of  banks  has  taken  possession  as  aforesaid,  deems 
itself  aggrieved  thereby,  it  may  at  any  time  within  ten  days  after 
such  taking  possession,  and  not  thereafter,  apply  to  the  superior 
court  in  the  county  in  which  the  iirincipal  office  of  such  bank  is 
located,  to  enjoin  further  proceedings ;  and  said  court,  after 
citing  the  superintendent  of  banks  to  show  cause  why  further 
proceedings  should  not  be  enjoined,  and  upon  hearing  the  allega- 
tions and  proofs  of  the  jjarties,  and  determining  the  facts,  may, 
upon  the  merits,  dismiss  such  application,  or  enjoin  the  superin- 
tendent of  banks  from  further  proceedings,  and  direct  him  to 
surrender  such  business  and  property  to  such  bank. 

Either  party  aggrieved  by  the  judgment  rendered  thereon  may 
appeal  therefrom  to  the  supreme  court,  as  in  other  cases  of 
appeal  thereto  from  the  judgment  of  a  superior  court. 

An  appeal  as  above  provided  shall  operate  as  a  stay  of  the 
judgment  of  the  superior  court,  and  no  bond  need  be  given  if  the 
ap])<'al  be  taken  by  the  superintendent  of  banks  ;  but  if  the  appeal 


PANK.S    AND   BANKING.  509 

be  taken  by  such  bank,  a  houd  shall  be  given,  as  reciuired  by 
section  nine  hundred  and  forty-three  of  the  Code  of  Civil  Pro- 
cedure. 

Whenever  the  superintendent  of  banks  shall  have  paid  to  each 
and  every  depositor  and  creditor  of  such  corporation  (not 
including  stockholders)  whose  claim  or  claims  as  such  creditor 
or  depositor  shall  have  been  duly  approved  and  allowed  the  full 
amount  of  such  claim,  and  shall  have  made  proper  provisions  for 
unclaimed  and  unpaid  deposits  or  dividends,  and  shall  have  paid 
all  expenses  of  the  liquidation,  the  superintendent  of  banks 
shall  call  a  meeting  of  the  stockholders  of  such  corporation  by 
giving  notice  thereof  for  thirty  days,  in  one  or  more  newspapers 
published  in  the  county  where  the  principal  office  of  such  cor- 
poration is  located.  At  such  meeting,  the  superintendent  of 
banks  shall  appear  an<l  deliver  to  the  stockholders  all  the  prop- 
erty, effects  and  records  of  such  bank,  and  upon  such  transfer 
and  delivery  he  shall  be  discharged  from  any  and  all  further 
liability  to  such  bank  and  its  creditors.  And  thereupon  the 
bank  shall  be  in  the  same  position  as  though  it  had  never  been 
authorized  to  transact  a  banking  business,  and  such  bank,  by 
fulfilling  the  requirements  of  this  act.  and  of  the  superintendent 
of  banks,  can  thereafter  be  authorized  to  resume  the  conduct  of 
its  business  as  a  bank. 

Dissolution  of  bank — Esclieat  of  unclaimed  funds. 

Sec.  137.  1.  Any  bank  shall  have  the  right,  on  application 
of  the  stockholders  or  members  to  apply  to  the  superior  court  of 
the  county  wherein  its  principal  place  of  business  is  situated,  to 
dissolve  said  bank  in  the  manner  provided  for  in  title  six.  part 
three  of  the  Code  of  Civil  I'rocedure. 

1>.  It  is  hereby  made  the  duty  of  every  iierson  or  corporation 
holding  funds  of  any  bank,  at  the  end  of  five  years  from  and 
after  such  bank  has  ceased  to  receive  deposits,  or  do  business,  to 
pay  the  same  into  the  state  treasury,  which  money  shall  be  held 
in  the  state  school  land  fund;  and  at  the  same  time  it  shall  be 
the  duty  of  such  person  or  corporation  to  furnish  to  the  state 
controller  :i  list  of  the  names  of  all  depositors  to  whoni  said 
moneys  belong  or  lo  whom  said  bank  owes  the  same. 

3.  Th(>  money  may  be  .irawii  oul  on  the  warrants  of  the  state 
controller,  issued  on  proofs  of  ownersliii).  approved  and  alloweil 
by  Ihe  state  board  ol'  examiners. 

4.  All    moneys    paid    into    the   said    fund,    uncalled    for    within 


510  STATUTES    AT    LARGE. 

five  years  after  being  paid  in,  shall  by  operation  of  law.  and 
without  action  had,  escheat  to  the  state,  and  thereafter  only  be 
drawn  out  in  such  manner  as  now  provided  for  by  law  for  the 
estates  of  deceased  persons  escheated  to  this  state. 

5.  The  state  board  of  examiners  must  invest  such  moneys  in 
the  same  manner  that  the  state  school  land  fund  is  invested  as 
provided  by  law.  But  any  claimant  shall  be  entitled  to  recover 
as  herein  provided  only  the  principal  so  paid  into  the  state 
treasury. 

Reports,  failure  to  make. 

Sec.  13S.  If  any  bank  shall  fail  to  make  the  report  reijuired 
by  law  or  by  the  superintendent  of  banks,  within  ten  days  from 
the  day  designated  for  the  making  thereof,  or  to  include  therein 
any  matter  required  by  law  or  by  the  superintendent  of  banks, 
every  such  delinquent  bank  shall  forfeit  to  the  people  of  the 
state  the  sum  of  one  hundred  dollars  for  each  day  that  such 
report  shall  be  delayed  or  withheld,  and  for  every  day  it  shall 
fail  to  report  any  such  omitted  matter.  In  the  event  of  the 
failure  of  any  such  bank  to  make  the  report  required  from  it  by 
law,  or  by  the  superintendent  of  banks,  he  shall  immediately 
cause  the  books,  papers  and  affairs  of  such  bank  to  be  thoroughly 
examined. 

Directors  of  banks,  duties  of — Report  of  directors,  what  to  con- 
tain. 
Sec.  139.  It  shall  be  the  duty  of  the  board  of  directors  of 
every  bank  to  examine  fully  into  the  books,  papers  and  affairs 
of  the  bank  of  which  they  are  directors,  and  particularly  into  the 
loans  and  discounts  thereof,  with  a  special  view  to  ascertaining 
the  value  and  security  thereof,  and  of  the  collateral  security,  if 
any  given,  in  connection  therewith,  and  into  such  other  matters 
as  the  superintendent  of  banks  may  require ;  such  examination 
to  be  made  at  least  once  a  year,  but  no  such  subsequent  yearly 
examinations  shall  be  made  within  three  months  of  the  next  pre- 
ceding examination.  Such  directors  shall  have  power  to  employ 
such  assistance  in  making  such  examination  as  they  may  deem 
necessary.  Within  ten  days  after  the  completion  of  such  exami- 
nation, a  report  in  writing  thereof,  sworn  to  by  the  directors 
making  the  same,  shall  be  made  by  the  board  of  directoi's  of  such 
bank,  and  placed  on  file  with  the  records  of  said  bank,  and  shall 
be  subject  to  examination  by  the  superintendent  of  banks. 


BANKS    AND   BANKING.  '  511 

Such  report  sluill  particularly  contain  a  statement  of  tlie 
assets  and  liabilities  of  the  bank  examined,  as  shown  by  its 
books,  together  with  any  deductions  from  the  assets,  or  additions 
to  liabilities,  which  such  directors  or  committee,  after  such 
examination,  may  determine  to  make.  It  shall  also  contain  a 
statement,  in  detail,  of  loans,  if  any,  which  in  their  opinion  are 
worthless  or  doubtful,  together  with  their  reasons  for  so  regard- 
ing them ;  also  a  statement  of  loans  made  on  collateral  security, 
which  in  their  opinion  are  insufficiently  secured,  giving  in  each 
case  the  amount  of  the  loan,  the  name  and  market  value  of  the 
collateral,  if  it  has  any  market  value,  and,  if  not.  a  statement  of 
that  fact,  and  its  actual  value  as  nearly  as  possible.  Such  report 
shall  also  contain  a  statement  of  overdrafts,  of  the  names  and 
amounts  of  such  as  they  consider  worthless  or  doubtful,  and  a 
full  statement  of  such  other  matters  as  affect  the  solvency  and 
soundness  of  the  bank.  If  the  directors  of  such  bank  shall  fail 
to  make,  or  cause  to  be  made,  and  tile  such  report  of  examina- 
tion in  the  manner  and  within  the  time  specified,  the  directors 
of  such  bank  shall  be  guilty  of  a  misdemeanor. 

Report  of  superintendent  to  governor. 

Sec.  140.  The  superintendent  of  banks  shall  report  during 
the  month  of  October  of  each  year,  to  the  governor,  for  submis- 
sion to  the  next  ensuing  session  of  the  legislature : 

1.  A  summary  of  the  state  and  condition  of  every  bank 
required  to  report  to  him,  and  from  which  reports  have  been 
received  the  preceding  year,  with  an  abstract  of  the  whole 
amount  of  capital  returned  by  them,  the  whole  amount  of  their 
debts  and  liabilities,  and  the  total  amount  of  means  and 
resources,  specifying  the  amount  of  specie  held  by  them  at  the 
time  of  the  last  report  to  him,  and  such  other  information  in . 
relation  to  such  banks  as,  in  his  judgment,  may  be  useful. 

2.  A  statement  of  all  banks  authorized  by  him  to  do  business 
during  the  previous  year,  with  their  names  and  locations  and 
dates  of  incorporation,  and  particularly  designating  such  as  have 
commenced  business  during  the  year. 

3.  A  statement  of  the  banks  whose  l)usiness  has  lieen  closed 
during  the  year. 

4.  Any  amendments  to  the  banking  law,  which,  in  his  judg- 
ment, may  be  desirable. 

5.  The  names  and  compensation  of  all  persons  employed  liy 
him,  and  the  whole  amount  of  the  receipts  and  expenses  of  the 
department  during  the  year. 


ol2  •  STATUTES    AT    LARGE. 

().  The  names  of  hanks  placed  in  his  hands  in  process  of 
liquidation,  and  the  amount  of  dividends  paid  thereon. 

Such  report,  and  the  usual  number  of  copies  for  the  use  of 
the  legislature,  shall  be  printed  and  in  readiness  for  distribution 
by  the  state  printer,  and  one  thousand  copies  shall  be  printed 
for  the  use  of  the  department,  the  expense  of  which  shall  be 
charged  among  the  general  expenses  of  the  department. 

Weekly  bulletin  to  be  posted  by  superintendent,  and  items 
thereof — File  of  bulletins. 

Sec.  141.  1.  The  superintendent  of  banks  shall  keep  in  his 
office,  in  a  place  accessible  to  the  general  public,  a  bulletin  board 
upon  which  he  shall  cause  to  be  posted  at  noon  on  Friday  of  each 
week  a  detailed  statement,  signed  by  him  or,  in  case  of  his 
absence  from  San  Francisco  or  inability  to  act,  by  the  deputy 
superintendent  in  charge,  giving  the  following  items  of  general 
information  with  regard  to  the  work  of  the  department  since  the 
preceding  statement : 

(«)  The  name  of  every  hank  that  has  filed  in  the  banking 
department  an  application  for  authorizatiou  to  commence  busi- 
ness, its  location  and  the  date  of  filing  of  such  application. 

(6)  The  name  and  location  of  every  bank  authorized  by  the 
superintendent  of  banks  to  commence  business,  its  capital,  sur- 
plus, and  the  date  of  authorization. 

(c)  The  name  of  every  bank  to  which  a  certificate  of  author- 
ization has  been  refused  by  the  superintendent  of  banks,  and  the 
date  of  notice  of  refusal. 

(f/)  The  name  and  residence  of  every  person  appointed  by  the 
superintendent  of  banks  as  a  deputy,  examiner  or  employee  in 
the  banking  department,  the  title  of  the  office  to  which  appointed, 
the  compensation  paid,  and  the  date  of  appointment. 

(e)  The  date  on  which  a  call  for  a  report  by  banks  was  issued 
by  the  superintendent  of  banks,  and  the  day  designated  as  the 
day  with  reference  to  which  such  report  should  be  made. 

if)  The  name  and  location  of  every  bank  whose  creditors  or 
depositors  have  been  paid  in  full  by  the  superintendent  of  banks 
and  a  meeting  of  whose  stockholders  shall  have  been  called, 
together  with  date  of  notice  of  meeting  and  date  of  meeting. 

ifj)  The  name  and  location  of  every  bank  sui).iect  to  the 
banking  law  whose  affairs  and  business  shall  have  been  finally 
liquidated,  or  in  course  of  liiiuidation. 

(/()  The  name  and  location  of  every  bank  wliich  has  ai)i)lied 
for  approval  of  a  clijingc  of  name,  and  the  name  proposed. 


BANKS    AND   BANKING.  513 

2.  Evf'i'.v  such  Imlletin.  nftcr  liavinj;  been  posted  as  aforesaid 
foi"  one  week,  shall  be  placed  on  a  tile  for  such  statements,  to  be 
keiit  in  the  office  of  the  superintendent  of  banks.  All  such  state- 
ments shall  be  public  documents,  and  at  all  reasonable  times 
shall  be  open  to  public  insi)ection  during  usual  bankina  hours. 

Official  reports,  prima  facie  evidence. 

Sec.  142.  Every  otficial  report  made  by  the  superintendent 
and  every  report  duly  verified  of  an  examination  made,  shall  be 
prima  facie  evidence  of  the  facts  therein  stated,  for  all  purposes 
in  any  action  or  proceeding  wherein  such  bank  is  a  party. 

Neglect  of  duty  by  superintendent. 

Sec.  143.  If  the  superintendent  of  banks  shall  have  knowl- 
edge of  the  insolvency  or  unsafe  condition  of  any  bank  mentioned 
in  this  act,  and  that  it  is  unsafe  or  inexpedient  to  permit  said 
liank  to  continue  business,  and  shall  neglect  to  forthwith  take 
action  as  provided  in  sections  one  hundred  thirty-three,  one 
luuidred  thirty-four,  and  one  hundred  lliiriy-six  of  this  act.  he 
shall  be  guilty  of  a  felony. 

Actions,  duty  of  attorney  general. 

Sec.  144.  Whenever  by  the  terms  of  this  act  a  penalty  or 
forfeiture  is  imposed,  the  same  shall  be  recovered  in  an  action 
brought  at  the  request  of  the  superintendent  of  banks  by  the 
attorney  general,  in  the  name  of  the  people  of  the  state,  and 
the  sum  recovered  shall  be  paid  into  the  state  banking  fund  and 
used  in  payment  of  claims  against  the  said  fund. 

Construction  of  act. 

Sec.  145.  The  powers,  privileges,  duties  and  restrictions  con- 
ferred and  imposed  upon  any  corporation  or  individual  existing 
and  doing  business  under  the  laws  of  this  state  are  hereby 
.il)ridged.  enlarged  or  modified  as  (>ach  particular  case  may 
reipiire.  to  conform  to  the  provisions  of  this  act,  notwithstanding 
anything  to  the  contrary  in  their  respective  articles  of  incorpora- 
tion or  charters.  The  legality  of  investments  heretofore  made,  or 
of  transactions  heretofore  liad,  pursuant  to  any  ijrovisions  of  law 
in  force  when  such  investments  were  made  or  transactions  had, 
shall  not  he  affected  by  the  provisions  of  this  act,  nor  shall  such 
provisions  require  the  changing  of  investments  for  those  named 
in  this  act,  except  as  the  same  can  bo  done  gradually  by  the  sale 
or  redemption  of  the  securities  so  invested  in,  in  such  manner  as 


514  STATUTES    AT   LARGE. 

to  prevent  loss  or  enibnrrassment  in  the  business  of-  such  I)ank, 
or  unnecessary  loss  or  injury  to  the  borrowers  on  such  security. 

Conflicting  laws  repealed. 

Sec.  146.     All  acts,  or  jiai-ls  uf  acts,  in  conflict  with  this  act 
are  herel)y  repealed. 

Time  act  shall  take  effect. 

Sec.    147.     This  ad  shall  lake  effect  July  first.  1!»09. 


BATH  HOUSES. 

An  act  to  secure  the  safety  of  the  public  at  bathing  places  upon 
the   seacoast   and    lakes. 

Approved  March  10,  1009;  stats.  1909,  p.  261. 

Tlif  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Lifeboats,  requirements  for. 

Section  1.  Every  person,  (irni  of  persons,  or  corporation, 
owning  or  conducting  within  this  state  a  bath  house,  or  other 
public  place  for  the  purpose  of  accommodating  bathers,  bor- 
dering upon  or  adjoining  the  seacoast  or  a  lake  where  the 
public  resort  for  the  purpose  of  bathing  in  the  open  sea  or  lake 
.shall  keep  one  or  more  lifeboats  fully  equipped  with  oars,  oar- 
locks, and  not  less  than  two  life  preservers,  and  two  hundred 
feet  of  rope,  always  in  good  repair  and  near  the  bath  house  or 
resort.  Such  boat  or  boats  shall  have  the  word  "lifeboat" 
plainly  printed  or  painted  upon  them,  and  they  shall  be  used 
for  no  other  purpose  than  for  saving  of  life  or  for  other  cases 
of  emergency. 

Penalty. 

Sec.  2.  Any  person,  firm  of  persons,  or  corporation  who 
fails  to  comply  with  the  provisions  of  this  act  is  guilty  of  a  mis- 
demeanor and  upon  conviction  shall  be  sentenced  to  pay  a  fine 
of  not  less  than  ten  nor  more  than  two  hundred  dollars  or  be 
imprisoned  in  the  county  jail  not  less  than  ten  days  nor  more 
than  six  months,  or  by  both  fine  and  imprisonment. 

Time  act  shall  take  effect. 

Sec.  3.     This  act  shall  take  effect  thirty  days  after  its  passage. 


515 


BOARDS  OF  TRADE. 

See  Chambers  of  Commerce. 


BENEFICIAL     AND     RELIEF     ASSOCIATIONS. 

An   act   relating  to   mutual   beneficial   and   relief   associations. 

Approved  March  28,  1874  ;, stats.  1873-4,  p.  745  ;  amended  1880, 
p.  25  ;  1901,  p.  6.  Codified  by  tlie  legislature  of  1905,  and  theie- 
foi'e  superseded  by  sections  452a  and  453  of  tlie  Civil  Code. 


BONDS. 

An  act  to  facilitate  the  giving  of  bonds  required   by  law. 

Approved  March  12,  1885;  stats.  1885,  p.  114. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Incorporation  for  giving  bonds. 

Section  1.  Whenever  any  person  who  now  or  hereafter  may 
bo  required  or  permitted  by  law  to  make,  execute,  and  give  a 
bond  or  undertaliirig.  with  one  or  more  sureties,  conditioned  for 
tlie  faithful  performance  of  any  duty,  or  for  the  doing  or  not 
doing  of  anything  in  said  bond  or  undertaking  specified,  any 
head  of  department,  board,  court,  judge,  officer,  or  other  person, 
wlio  is  now  or  shall  hereafter  be  required  to  approve  the  suffi- 
ciency of  any  such  bond  or  undertaking,  or  the  sureties  thereon, 
may  accept  as  sole  and  sufficient  surety  on  such  bond  or  under- 
taking, any  corporation  incorporated  under  the  laws  of  any 
state  of  the  United  States  for  the  purpose  of  making  or  guar- 
anteeing bonds  and  undertakings  required  by  law.  and  which 
shall  have  complied  with  all  the  requirements  of  the  laws  of  this 
state  regulating  the  admission  of  such  corporation  to  transact 
such  business  in  this  state ;  and  all  such  corporations  are  hereby 
vested   with   full   power  and   authority   to  make  and  guarantee 


516  STATUTES    AT    LARGE. 

such  bonds  and  undertakings,  and  shall  l)e  subject  to  all  the 
liabilities  and  entitled  to  all  the  rights  of  natural  persons  sure- 
ties. 

When  corporation  not  accepted. 

Sec.  2.  It  is  further  i)ro\i(led  that  the  guaranty  of  any  such 
company  shall  not  be  accepted  by  heads  of  departments  or  others, 
as  provided  in  section  one  of  this  act.  whenever  its  liabilities 
shall  exceed  its  assets,  as  ascertained  in  the  manner  ])rovi<led  in 
section  three  of  this  act. 

Duty  of  insurance  commissioner. 

Sec.  ;J.  Whenever  the  liabilities  o^  any  such  company  shall 
exceed  its  assets,  the  insui'ance  commissioner  shall  require  the 
deficiency  to  be  paid  up  within  sixty  days,  and  if  it  is  not  so 
paid  up.  then  he  shall  issue  a  certificate  showing  the  extent  of 
such  deficiency,  and  he  shall  publish  the  same  once  a  week  for 
three  weeks  in  a  daily  San  Francisco  paper,  and  thenceforth, 
and  until  such  deficiency  is  paid  up,  such  company  shall  not  do 
business  under  the  provisions  of  this  act.  And  in  estimating 
the  condition  of  any  such  company  under  the  provisions  of  this 
act,  the  commissioner  shall  allow  as  assets  only  such  as  are 
authorized  under  existing  laws  at  the  time,  and  shall  charge  as 
liabilities,  in  addition  to  eighty  \h'v  cent  of  the  capital  stock,  all 
outstanding  indebtedness  of  the  company  and  a  premium  reserve 
equal  to  fifty  per  centum  of  the  premiums  charged  by  said  com- 
pany on  all  risks  then  in  force.  Nothing  herein  contained  shall 
apply  to  bonds  given  in  criminal  cases. 

Time   act   shall   take  effect. 

Sec.  4.     This  act  shall   take  effect  immediately. 

Note. — Constitutional  (Cramer  vs.  Tittle.  72  Cal.  12)  ;  see, 
also.  Fox  vs.  Hale  d-  Norcross  Silver  Mining  Co..  97  Cal.  3.53. 

See.  also.  Cod(>  Civ.  Proc.  §§  lO.KJ  and  10.")7,  and  Pol.  C. 
subd.  4  of  §  9.Sr>. 


An  act  providing  for  the  cancellation  of  bonds  given  to  secure 
the  performance  of  the  terms  and  conditions  of  franchises  or 
privileges  granted  by  the  legislative  or  other  governing  body 
of  counties  or  municipalities,  the  release  of  the  sureties  on 
such  bonds,  and  the  filing  and  acceptance  of  new  bonds  in 
lieu  thereof. 

Approved  March  20,   1907;   stats.   1907,  p.  747. 

The  people  of  the  State  of  California,  represented  in  senate  and 
asscuihlii.  do  enact  as  folloivs: 

Bonds  to  secure  conditions  of  franchises,  petition  for  release — 
Conditions  of  nevj  bonds — Corporation  surety. 
Section  1.  That  in  all  cases  where  a  boud  or  l)oucls  have 
been  given  to  secure  the  observance,  fulfillment  and  perform- 
ance of  each  and  every  term  or  condition,  terms  or  conditions, 
or  any  thereof,  of  a  franchise  or  privilege  granted  by  a  board 
of  supervisors,  board  of  trustees  or  common  council,  or  other 
governing  or  legislative  body  of  any  county,  city  and  county, 
city  or  town  within  this  state,  the  governing  or  legislative  body 
of  such  county,  city  and  county,  city  or  town  may,  upon  the 
petition  of  the  owner  of  said  franchise  or  privilege,  or  upon 
the  petition  of  the  sureties  on  said  bond  or  bonds,  or  upon  the 
petition  of  any  one  or  more  of  said  .sureties,  cancel  and  annul 
said  bond  or  bonds,  and  release  the  sureties  thereon  from  any 
future  liability,  and  accept  and  take  in  lieu  thereof  a  new  bond 
or  bonds  to  be  approved  by  the  governing  or  legislative  body  of 
such  county,  city  and  county,  city  or  town,  in  the  same  penal 
sum  and  containing  the  same  terms  and  condition.s  as  the  bond 
or  bonds  so  canceled  and  annulled  :  which  new  bond  or  bonds 
must  be  executed  by  the  owner  of  said  franchise  or  privilege  and 
by  new  sureties  satisfactory  to  the  governing  or  legislative  body 
of  such  county,  city  and  county,  city  or  town  ;  provided,  that  any 
person,  firm  or  corporation  who  acted  as  surety  on  the  old  bond 
or  bonds  so  canceled  and  annulled  may  act  as  surety  on  the  new 
bond  or  bonds,  if  the  same  be  satisfactory  to  the  governing  or 
legislative  body  of  such  county,  city  and  county,  city  or  town. 

When  old  bond  shall   become  annulled. 

Sec.  2.  Innncdiately  upon  the  acceptance  by  the  governing 
or  l(>gislative  body  of  such  county,  city  and  county,  city  or  town 
of  any  new  bond  or  bonds,  filed  with  the  governing  or  legislative 
body   of  such  county,  city   and  county,  city  or  town   as  herein 


518  STATUTES    AT  LARGE. 

I)rovi(letl  for,  the  old  bond  or  bonds 'shall  become  canceled  and 
annulled,  and  the  sureties  thereon  shall  by  such  cancellation 
and  annulment  be  released  from  any  future  liability  on  such 
old  bond  or  bonds,  but  such  cancellation  and  annulment  shall 
not  release  said  sureties  from  any  past  liability ;  and  thereafter 
the  new  bond  or  bonds,  herein  provided  for,  shall  take  the  place 
of  such  old  bond  or  bonds. 

Time  act  shall  take  effect. 

-   Sec.  3.     This  act  shall   take  effect  immediately. 


BRIDGES. 

An  act  to  provide  for  bridges  across  navigable  streams,  and 
across  estuaries,  ponds,  swamps,  or  arms  of  bays  that  may 
be  outside  of  the  line  of  navigable  waters. 

Approved  March  14,  1881j  stats.  1881,  p.  76. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Power  of  supervisors  to  erect  bridges  or  grant  franchises. 

Section  3.  The  power  to  erect  bridges  on  public  highways 
across  navigable  streams  in  this  state,  or  to  grant  franchises  to 
individuals  or  corporations  for  the  same,  is  hereby  granted  to 
the  boards  of  supervisors  of  the  several  counties  of  the  state, 
under  the  restrictions  of  this  act. 

Where  two  counties  interested,  which  one  to  controj. 

Sec.  2.  The  power  to  grant  franchises  to  individuals  or  cor- 
porations to  construct  bridges,  and  the  regulation  of  tolls 
thereon,  shall  be  exercised  by  the  county  on  the  left  bank  of  all 
streams. 

Supervisors  may  join,  when  navigable  stream. 

Sec.  3.  Where  a  navigable  stream  is  the  boundary  line 
between  the  counties,  the  boards  of  supervisors  of  such  coun- 
ties may  join  in  the  construction  of  a  bridge,  upon  such  terms 
as  may  be  agreed  upon  ;  proiided,  hotvever,  that  in  case  of  a 
failure  to  agree,  either  county  may  build  the  bi-idge  and  main- 
tain control  thereof. 


nniiHiEs.  riii) 

state  engineer  to  be  notified — Draw  and  length  of  spans. 

Sec.  4.  Whenever  the  siipcrx  isors  of  any  count}-  or  counties 
desire  to  erect  a  bridge  on  any  public  higluvay,  or  to  grant  the 
privilege  so  to  do  to  any  individual  or  corporation,  across  a 
navigable  stream,  under  tlie  provisions  of  this  act,  said  board 
or  boards  shall  notify  the  state  engineer  of  such  purpose,  and 
of  the  precise  point  where  such  bridge  is  proposed  to  be  located. 
The  state  engineer  shall,  within  ton  days  of  the  receipt  of  such 
notice,  designate  the  width  of  the  draw  to  be  made  in  such 
bridge,  and  also  the  length  of  the  spans  necessary  to  permit  the 
free  flow  of  water. 

Change  of  plans — Hearing  before  state  engineer. 

Sec.  5.  The  communication  from  the  state  engineer,  fixing 
the  draw  and  spans,  shall  be  spread  upon  the  minutes  of  the 
board,  and  any  bridge  constructed  at  that  point  shall  be  in 
conformity  therewith;  provided,  however,  that  the  state  engineer 
may,  upon  hearing  before  him,  had  upon  application  of  any  per- 
son or  body  interested,  made  within  ten  days  after  the  receipt 
by  .said  board  of  supervisors  of  said  communication  of  said 
engineer,  change  his  first  plans,  in  which  case  the  modified 
plans  must  be  so  spread  upon  the  minutes,  and  shall  stand  in 
the  place  of  the  original ;  provided,  hoivever,  that  before  such 
hearing  is  had,  the  said  engineer  must  give  ten  days'  notice,  by 
publication  in  some  newspaper  published  in  the  county  or  coun- 
ties from  which  the  application  came,  of  the  time  and  place  of 
the  hearing. 

Surveyor  general  to  act  in  certain  contingencies. 

Sec.  6.  In  case  of  the  absence  or  inability  of  the  state 
engineer  to  act,  the  duties  devolving  upon  him  under  this  act 
shall  be  performed  by  the  state  surveyor  general. 

Rates  of  toll,  by  whom  fixed,  when  stream  is  navigable. 

Sec.  7.  When  a  bridge  shall  be  built  on  a  navigable  stream, 
by  one  county,  or  two  counties,  it  may  be  absolutely  free,  or 
tolls  sufficient  to  pay  in  whole,  or  in  part,  for  the  construction, 
and  to  keep  up  the  repairs  and  expenses  thereof,  may  be 
charged  ;  the  rate  to  be  fixed  by  the  board  of  supervisors  of  the 
county  in  which  the  same  is  located,  or,  if  located  in  two  coun- 
ties, then  by  the  boards  of  supervisors  of  the  two  counties ;  or 
if  there  be  any  disagreement  between  said  boards,  as  to  impos- 
ing or  removing  tolls,  or  the  rate,  the  matter  in  dispute  shall  be 


."20  STATUTES    AT    LARflE. 

referred  to  the  board  of  supervisors  of  some  neifjhboring  county 
for  determination,  and  its  decision,  communicated  in  writing  to 
the  clerks  of  tlie  said  lioards  respectively,  shall  be  final ;  and  if 
tolls  are  fixed  or  removed  thereby,  the  same  shall  take  effect  on 
the  tenth  day  from  the  date  of  sucli  writ  ten  determinnlion. 

SLipervisors  have  power  to  erect  bridges  at  expense  of  county. 

Sec.  S.  The  l)oard  of  supervisors,  or  other  governing  body 
of  any  city  and  county,  or  county,  in  this  state,  shall  have 
l)Ower  to  declare  that  it  is  necessary  for  the  public  convenience 
to  have  a  bridge  or  bridges  built  across  any  estuary,  swamp, 
pond,  or  arm  of  a  bay  that  may  lie  or  extend  into  the  county, 
or  city  and  county,  and  prescribe  the  points  between  which  said 
bridge  or  bridges  shall  be  built,  and  when  they  shall  have  speci- 
fied the  points  between  which  it  is,  in  their  judgment,  necessary 
to  build  the  said  bridge  or  bridges,  they  may  let  contracts  to 
build  the  bridges,  as  aforesaid,  and  pay  for  tlie  same  out  of  the 
general  fund  of  the  city  and  county  or  county. 

Time  act  shall  take  effect. 

Sec.  !>.     This  act  shall  take  effect  immediately. 
123  Cal.  181, 

(For  repairing  and  reconstructing,  see  act  of  February  25, 
1S07,  following;  also  act  of  March  23,  T.IOT.  for  adjoining  coun- 
ties.) 


An  act  concerning  bridges  across  navigable  streams. 

Approved  February  25,  1S97;  stats.  ISOT,  p.  21. 

The  people  of  the  Htate  of  Californid,  represented  in  senate  and 

(iss-oiihlii.  do  enact  (ts  follows: 

Power  of  supervisors  to  reconstruct  or  replace  bridges — Agree- 
ment with  corporations. 
Section  1.  The  board  of  sui)ervisors  of  any  county  in  this 
state  now  controlling  or  maintaining,  by  virtue  of  any  statute, 
any  bridge  across  any  navigable  stream  wholly  or  in  part  within 
the  boundary  lines  of  any  municipal  corporation,  is  hereby 
authorized  and  empowered,  whenever  it  may  become  necessary, 
in  the  interest  of  commerce  or  by  reason  of  any  such  bridge 
being  out  of  repair,  to  reconstruct  and  rebuild  any  part  of  such 


BRIDGES.  521 

bridge,  or  replace  said  bridge  l)y  a  new  structure,  or  with  tlie 
consent  of  the  g:ovcrning  bodies  of  such  municipalities  change 
the  location  of  such  bridge  to  such  place  on  such  stream  as  may 
be  better  suited  to  its  use.  or  to  the  use  of  such  navigable 
stream :  and  the  board  of  supervisors  of  any  county  is  hereby 
authorized  to  abandon  any  such  existing  bridge  and  rebuild  a 
new  bridge  at  such  changed  location,  and  the  board  of  super- 
visors of  any  such  county  so  rebuilding  and  reconstructing  said 
bridge  may  enter  into  an  agreement  with  any  person  or  corpo- 
ration, now  maintaining  any  bridge  across  any  such  navigable 
stream,  for  the  building  of  a  joint  bridge  for  the  purpose  of  pre- 
venting the  impeding  of  commerce  on  such  navigable  streams, 
and  of  apportioning  the  expense  between  said  county  and  said 
person  or  any  corporation,  in  such  manner  as  may  be  agreed 
upon  between  said  county  and  said  person,  or  corporations. 

Division  of  expense. 

Sec.  2.  The  expense  of  said  reconstruction,  or  the  building 
of  a  new  bridge,  to  be  payable  out  of  the  same  fund  as  is  now 
pro\ided  by  law  for  the  maintenance  and  repair  of  any  such 
bridge;  i)rockU'd,  that  in  case  said  county  should  make  such 
agreement  with  said  'person  or  corporation  for  the  building  of 
any  joint  l)ridge.  that  only  the  county's  portion  of  said  joint 
bridge,  as  may  be  settled  by  said  agreement,  shall  be  paid  from 
the  said  funds  ;  and,  provided,  that  in  no  event  shall  the  county 
pay  more  than  one  half  the  cost  of  construction,  repair,  or 
reconstruction  of  any  such  joint  bridge. 

Repeal  of  conflicting  acts. 

Sec.  ."').  All  acts  or  parts  of  acts  in  contiict  herewith  are 
hereby  repealed. 

Time  act  shall  take  effect. 

Sec.  4.     This  act  shall  take  effect  from  and  after  its  passage. 

(As  to  construction  of  bridges,  etc..  .see  act  of  March  14,  18S1, 
ante;  see,  also,  act  of  March  23,  1907,  post.) 


522  STATUTES    AT   LAIJGE. 


An  act  to  enable  adjoining  counties  to  enter  into  agreements  for 
the  construction,  rebuilding,  replacing,  or  relocation  of 
bridges  over  navigable  waters  between  said  counties,  jointly 
with   other  persons  or  corporations. 

Approved  March  23,  1907;  stats.  1907,  p.  982. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Bridges  between  two  counties,  provision  for  joint  construction 
and  repair. 
Section  1.  In  case  it  shall  appear  to  the  boards  of  super- 
visors of  two  adjoining  counties  that  any  bridge  shall  be  neces- 
sary for  highway  purposes,  over  any  navigable  river,  stream, 
or  inlet  of  the  sea,  between  said  counties,  or  if  any  bridge  exist- 
ing thereover  and  used  wholly  or  in  part  for  highway  purposes, 
(whether  the  same  is  owned  by  said  counties  or  either  of  them, 
or  used  by  them  or  either  of  them  by  agreement  with  the  owner 
thereof,)  shall,  in  the  interests  of  commerce,  or  by  reason  of 
.such  bridge  being  out  of  repair  or  deteriorated  beyond  reasonable 
repair,  require  reconstruction,  or  rebuilding,  or  replacing  by  a 
new  structure,  or  its  location  to  be  changed  to  such  place  on  such 
navigable  river,  stream,  or  inlet  of  the  sea,  as  may  be  better 
suited  to  its  use,  or  to  the  use  of  such  navigable  water,  or  may 
tend  to  prevent  obstruction  to  commerce  thereon,  the  boards  of 
supervisors  of  such  counties  may,  in  their  discretion,  enter  into 
an  agreement  with  any  person  or  corporation  for  the  building  of 
a  joint  bridge,  or  the  reconstruction,  or  rebuilding,  or  replacing 
by  a  new  structure  of  such  existing  bridge,  or  the  rebuilding 
thereof  at  another  location,  and  the  joint  use  of  the  same  there- 
after by  such  person  or  corporation,  and  said  counties  or  the 
public,  and  for  apportioning  the  expense  of  such  joint  recon- 
structed or  relocated  bridge  between  said  counties  and  each  of 
them  and  such  person  or  corporation  jointly  using  or  to  use  the 
same,  and  to  provide  for  the  construction  and  use  thereof  in  such 
manner  and  upon  such  terms  and  conditions  as  may  be  agreed 
upon  between  such  counties  and  such  person  or  corporation.  In 
such  case  none  of  the  provisions  of  subdivision  four  of  section 
twenty-five  of  an  act  entitled  "An  act  to  establish  a  uniform 
.system  of  county  and  township  government,"  approved  April  3, 
1807,  shall  be  applicable  thereto;  provided,  that  in  no  event  shall 
either  count}-  agree  to  conlribute  more  than  one  third  of  the  cost 


BKIDGES.  '^'""S 

of  construction.  ret-onstriK'tion.  relocation,  or  repair  of  any  such 
joint  bridge. 

Time  act  shall  take  effect. 

Sec.  2.     This  act  shall  take  effect  immediately. 

(See,  also,  acts  of  March  14,  1881,  and  February  25,  1807, 
ante. ) 


BROKERS. 

An  act  fixing  the  rates  of  interest  and  charges  on  loans  upon 
chattel  mortgages  on  certain  personal  property,  and  pre- 
scribing penalties  for  the  violation  of  the  act. 

Approved   March    20,    1905;    stats.    1905,   p.    422.      Unconstitu- 
llonal.     {Ex  parte  Sohncke,  14  8  Cal.  262.) 


An  act  to  provide  for  the  incorporation  of  associations  for  lending 
money  on  personal  property,  and  regulating  the  same,  and  to 
forbid  certain  loans  of  money,  property  or  credit. 

Approved   March    21,    1905;    stats.    1905,    i>.    711.      UnconstiUi- 
tional.      {Ex  parte  Sohncke,   148   Cal.   262.) 


An    act   to    define    personal    property    brokers    and    regulate    their 
charge  and  business. 

Approved  April  16,  1909;  stats.  1909,  p.  969. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Personal  property  broker  defined. 

Section  1.  That  every  person  or  corporation  engaged  in  the 
business  of  loaning  or  advancing  money  or  other  thing  and 
taking,  in  whole  or  in  part  as  security  for  such  loan  or  advance 
any  chattel  mortgage,  bill  of  sale  or  other  obligation  or  contract 
involving  the  forfeiture  of  rights  in  or  to  personal  property,  the 


524  STATUTES    AT    LARGE. 

use  or  possessiou  of  which  is  retained  by  other  than  the  mort- 
gagee or  lender,  or  engaged  in  the  business  of  loaning  or  advanc- 
ing money  or  other  thing,  and  taking  either  in  whole  or  in  part 
as  security  therefor  any  lien  on,  assignment  of  or  power  of 
attorney  relative  to  wages,  salary,  earnings,  income  or  comm's- 
sions,  shall  be  held,  and,  for  the  uses  and  purposes  of  this  act, 
is  hereby  declared  and  defined  to  be  a  personal  property  broker. 

Percentage  that  may  be  charged. 

Sec.  2.  Such  i)ersonal  property  broker  may  charge,  recei\e 
and  collect  a  l)enelit  or  percentage  upon  money  or  other  thing 
advanced,  or  for  the  use  and  forbearance  thereof,  of  five  per 
centum  per  month  where  such  loan  or  advance  is  made  upon 
security  properly  falling  within  the  scope  of  business  as  set 
forth  in  section  one  hereof. 

Further  charges  forbidden — Exception. 

Sec.  o.  No  further  or  other  charges  either  for  r<'cordiiig, 
insuring  or  examining  the  security  or  property,  or  for  llie 
drawing,  executing  or  filing  of  papers,  or  for  any  services  or 
upon  any  pretext  whatsoever  beyond  the  aforesaid  charge  for 
interest  or  discount  shall  be  asked,  charged,  or  in  any  way 
I'eceived,  where  the  same  would  thereb.y  make  a  greater  charge 
for  the  money  or  thing  advanced  than  the  aforesaid  rate  of  five 
per  centum  per  month,  and  where  made,  all  such  charges  shall  be 
considered  and  be  of  the  same  effect  as  so  much  added  interest ; 
provided,  hoiccrcr.  that  with  the  consent  of  the  borrower  he  may 
be  required  to  pay  the  fees  or  charges  actually  expended  where 
the  same  are  made  necessary  by  law  to  give  full  legal  effect  to 
any  instrument  given  hereunder. 

Excess  of  legal   rate  forbidden. 

Sec.  4.  No  contract  of  any  kind  or  nature  ma<le  by  any 
personal  property  broker  which  comes  within  the  scope  of 
l)usiness  as  set  forth  in  section  one  hereof,  or  which  in  any  way 
involves  any  security  given  to  secure  the  performance  of  such 
contract,  shall  be  valid  or  of  any  force,  virtue  or  effect,  either 
at  law  or  in  equity,  if  there  is  therein  or  thereon  directly  or 
indirectly  charged,  accepted  or  contracted  to  be  received  oi' 
paid,  either  in  money,  goods,  discount,  or  thing  in  action,  or  in 
an.v  other  way,  a  greater  benefit,  rate  of  discount,  or  interest 
tlian  the  rate  of  five  per  centum  per  month  ;  and  if  a  greater 
benefit,   rate  of  discount   or  interest   than   five  per  centum  per 


month  is  directly  or  indirectly  advanced  or  paid  upon  any  such 
contract  as  is  in  this  section  designated,  the  excess  above  thi- 
said  rate  of  five  per  centum  per  mouth  so  advanced  or  paid 
may  be  demanded  and  recovered  by  the  person  or  his  legal  rep- 
resentatives or  assigns  who  advanced  or  paid  the  same  from  the 
I)erson  or  corporation  either  to  whom  or  for  whose  use  or  benefit 
such  payment  or  advance  or  any  part  thereof  was  made. 

Loan  tickets. 

Sec.  5.  Whenever  a  loan  or  advance  shall  be  made,  renewed 
or  extended,  hereunder  there  shall  be  given  to  the  borrower  a 
ticket  or  memorandum  plainly  inscribed  with  the  name  of  the 
person  or  corporation  making  the  loan,  and  members  or  general 
partners  of  the  same  if  it  be  a  firm,  partnership  or  association, 
and  further  designating  the  number  and  nature  of  the  iustl'u- 
ments  taken  as  security,  the  number  of  notes  and  amount  of  each, 
and  the  name  of  the  party  or  parties  in  whose  favor  each  of  the 
aforesaid  papers  are  executed,  when  the  same  are  payable,  the 
amount  actually  advanced  thereon,  the  amount  including  all 
interest  and  expenses  charged  or  to  be  paid  for  such  loan  or 
advance,  and  copies  of  sections  two,  three  and  four  of  this  act. 

Penalty  for  violation  of  act. 

Sec.  G.  The  failure  of  any  person  or  corporation,  or  any 
employee,  employees,  agent,  agents,  repi-eseutative  or  representa- 
tives making,  renewing  or  extending  a  loan  or  advance  properly 
falling  within  the  scope  of  business  as  set  forth  in  section  one  of 
this  act  to  comply  with  any  or  any  part  of  the  provisions  of 
section  five  hereof,  shall  be  punishable  by  a  fine  of  not  to  exceed 
fifty  dollars  for  the  first  offense,  and  by  a  fine  of  not  to  exceed 
two  hundred  dolhirs  for  each  subsequent  offense. 


526  STATUTES    A'P    LATifiK. 


BUILDING  AND  LOAN  COMMISSIONERS. 

An  act  creating  a  bureau  of  building  and  loan  supervision;  pro- 
viding for  the  appointment  of  administration  officials  there- 
for to  be  known  as  the  building  and  loan  commissioners: 
prescribing  their  duties,  powers  and  compensation;  providit  g 
for  a  secretar>t,  his  powers  and  compensation;  providing  for 
the  rental  of  offices  for  the  use  of  the  bureau  and  for  travel- 
ing and  office  expenses;  providing  a  system  for  licensing 
building  and  loan  and  other  associations,  and  for  assessing 
and  collecting  the  license  fees  necessary  to  meet  the  salaries 
and  other  expenses;  providing  a  course  of  procedure  where 
violations  of  law,  or  unsafe  practices  are  found  to  exist,  or 
.are  reported  by  the  commissioners  to  the  attorney  general; 
providing  for  involuntary  liquidation  by  trustees,  and  pro- 
ceedings in  connection  therewith;  providing  for  exemption 
of  property  of  associations  in  liquidation  from  attachments, 
executions  and  liens,  pending  liquidation;  providing  for  and 
requiring  associations  to  procure  licenses,  pay  assessments 
levied  for  pro  rata  of  salaries  and  expenses,  and  to  make 
and  file  reports;  providing  penalties  for  violations  of  law  and 
orders  of  the  commissioners:  providing  for  succession  in 
office,  and  repealing  all  acts  and  parts  of  acts  in  conflict 
herewith. 

Approved  March  21,  1905;  stats.  1005,  p.  650. 
Amended  March  23,  1907;  stats.  1907,  p.  931. 
Amended  March  20.  1909;  stats.  1909,  p.  544. 

The  people  of  the  State  of  California,  represented  in  smatc  and 
assemhhj .  do  enact  as  follows: 

Powers  of  bureau — Definition  of  building  and  loan  associations. 
Section  1.  There  is  hcrebj'  created  a  bureau,  to  be  known 
and  designated  as  the  "Bureau  of  Building-  and  Loan  Super- 
vision," with  powers  of  supervision,  examination  and  license  of 
all  building  and  loan  a.ssociations,  mutual  loau  associations, 
cooperative  home  associations,  and  all  other  corporations,  asso- 
ciations and  societies,  whenever,  wherever  and  however  formed, 
which,  in  the  judgment  of  the  administration  of  said  bureau, 
are  based,  or  are  operating  on  plans  or  methods  similar  to 
building  and  loan  associations  as  defined  in  section  six  hundred 
and  forty-eight  of  the  Civil  Code  ;  it  is  also  charged  with  the 
enforcement  of  all  laws  designed  for  the  formation,  government 
or  operation,  in  this  state,  of  any  such  associntion,  corporation 
or  society. 


BUILDIN(i    AMD    I.OAX    COMMISSIONERS.  't-i 

Number  of  commissioners — Appointment — Qualifications — Secre- 
tary. 
Beg.  2.  The  administratiou  of  said  bureau  shall  be  vested 
in  two  commissioners,  to  be  knowu  aud  designated  as  the  "Build- 
ing and  Loan  Commissioners,"  who  shall  be  appointed  by  the 
governor  (except  as  herein  provided)  and  commissioned  to  hold 
office  for  the  term  of  four  years  and  until  their  successors  yhall 
I.e  appointed  and  have  qualified.  They  must  be  citizens  of  this- 
state  and  residents  of  different  counties;  and  they  must  not  bo 
in  any  way  connected  with  any  association,  corporation  or 
society  coming  under  their  supervision.  They  shall  be  author- 
ized aud  empowered  to  appoint  a  secretary,  with  powers  of 
examination  the  same  as  their  own,  who  must  be  a  practical, 
skilled  accountant,  fully  conversant  with  buililing  and  loan 
accounts. 

Salaries,  and  traveling  and  office  expenses. 

Sec.  o.  The  commissioners  shall  each  receive  a  .salary  of 
three  thousand  dollars  per  annum,  aud  their  secretary  shall 
receive  a  salary  of  not  exceeding  eighteen  hundred  dollars  per 
annum.  There  shall  also  be  allowed  and  paid  the  necessary 
traveling  expenses  of  the  commissioners  and  their  secretary,  not 
to  exceed  the  sum  of  two  thousand  dollars  per  annum.  The 
commissioners  shall  procure  and  have  an  office  in  the  city  of 
San  Francisco,  which  office  shall  be  kept  open  for  business 
every  business  day,  during  such  hours  as  are  commonly  observed 
by  the  banks  of  that  city  as  banking  hours,  and  they  may  also, 
when  in  their  judgment  it  is  necessary,  procure  and  have  an 
office  iu  the  city  of  Los  Angeles.  For  said  offices  there  shall  be 
allowed  and  paid  a  total  rental  of  not  exceeding  one  hundred 
dollars  per  month.  Said  commissioners  may  also  provide  such 
fuel,  stationery,  printing,  postage,  office  help  and  other  neces- 
sary conveniences  as  may  be  requisite  in  sucli  office,  at  a  cost 
not  to  exceed  in  the  aggregate,  the  sum  of  five  hundred  dollars 
per  annum.  All  said  salaries  and  expenses  shall  be  audited 
and  paid  in  the  same  manner  as  the  salaries  and  exjienses  of 
other  state  officers.  [Sec.  H  amended  March  20.  1909;  iu  effect 
immediately.] 

Oath  of  office  and  bond  required. 

Sec.  4.  Before  entering  upon  their  respective  duties  the 
eommissioner.s  must  each  execute  an  official  bond  in  the  sum 
of   five   thousand   dollars   and    the   secretary   a    like   bond   in   the 


528  STATUTES    AT   LARCE. 

sum  of  two  thousand  dollars,  and  each  must  take  the  oath  of 
office  as  prescribed  l)y  the  Political  Code  for  state  officers  in 
general. 

Issuance  of  licenses — Report  to  governor. 

Sec.  r>.  It  shall  be  the  duty  of  the  corauiissiouers  to  furnish 
to  all  associations,  corporations  or  societies,  which,  in  their 
judgment,  legally  come  under  their  jurisdiction,  and  that  have 
otherwise  complied  with  the  requirements  of  law,  a  license 
authorizing  theia  to  transact  business  for  one  year  from  the 
date  of  said  license  ;  to  receive  and  place  on  file  in  their  office 
the  annual  or  other  reports  required  by  law  to  be  made  by 
building  and  loan  associations  or  other  corporations  or  societies 
licensed  by  them ;  to  supply  each  with  blank  forms  for  such 
statements ;  and  to  make,  on  or  before  the  first  day  of  October 
in  each  year,  a  tabulated  report  to  the  governor  of  this  state, 
showing  the  condition  of  all  such  associations,  corporations  or 
societies  reporting  to  them,  with  such  recommendation  as  they 
may  deem  pi'oper,  accompanied  by  a  detailed  statement  of  all 
moneys  received  by  them  since  their  last  report,  and  the  dis- 
position thereof. 

Annual  examinations  by  commissioners. 

Sec.  t>.  It  shall  be  the  duty  of  one  or  both  of  the  commis- 
sioners, in  person,  at  least  once  in  each  year,  without  previous 
notice,  to  visit  and  examine  into  the  affairs  of  every  such  asso- 
ciation, corporation  or  society  licensed  by  them,  incorporated  or 
doing  business  in  this  state  ;  on  such  occasions  they  shall  have 
free  access  to  all "  the  books,  records,  securities  and  papers  of 
every  such  association,  corporation  or  society  and  shall  first 
count  the  cash  and  check  the  bank  balance  of  such  corporation 
or  association  with  the  proper  amount  of  funds  as  shown  by  the 
books  to  be  on  hand  and  at  the  date  and  hour  of  such  examina- 
tion, and  shall  then  examine  and  verify  the  books,  accounts,  and 
securities,  and,  so  far  as  possible  and  consistent,  the  values  of 
all  property  owned  or  held  as  collateral  security  for  moneys 
loaned,  and  otherwise  use  reasonable  diligence  to  ascertain  the 
financial  condition  and  solvency  thereof.  They  and  their  sec- 
retary shall  have  power  to  administer  oaths  in  the  line  of  duty, 
and  to  examine  under  oath  the  officers,  employees  and  agents,  or 
the  custodian  or  receiver,  relative  to  any  or  all  of  the  business 
thereof.     The   commissiom'rs    or   their   secretary   or    representa- 


BUILDING   AND  LOAN   COMMISSIONERS.  52!) 

live  shall  receive  for  any  examiuation  into  the  books  and  affairs 
of  any  such  association,  corporation  or  society  formed  outside  of 
the  State  of  California  and  applying  for  a  license  to  do  business 
in  this  state,  their  reasonable  expenses,  which  shall  be  paid  by 
the  association,  corporation  or  society  so  examined ;  provided, 
that  they  may  accept  the  result  of  any  such  examination  made 
by  the  duly  constituted  authorities  of  any  state  having  similar 
laws  of  supervision. 

Books  of  associations — Valuation  of  property — Appointment  of 
appraisers — Sworn  report  to  commissioners. 
Sec.  7.  To  facilitate  the  examinations  specified  in  the  fore- 
going section,  they  shall  require  every  such  association,  cor- 
poration or  society  to  keep  its  books  in  such  form  as  to  accu- 
rately show  its  assets  and  liabilities  in  detail  and  to  keep  records 
written  in  ink,  showing  the  appraised  and  assessed  values  of 
the  real  estate  security  held  in  connection  with  each  loan,  and 
signed  in  each  case  by  the  appraiser,  officer  or  committee  charged 
with  making  such  estimated  valuations.  The  commissioners 
shall  make  a  revaluation  of  the  real  estate  owned,  and  of  the 
other  securities  of  any  such  association,  corporation  or  society 
licensed  by  them,  on  which  the  loan  payments  may  be  delin- 
quent for  six  months  or  more,  and  may,  for  that  purpose, 
appoint  local  appraisers,  who  shall  be  disinterested  persons,  at 
the  expense  of  such  ■  association,  corporation  or  society ;  the 
expense  of  such  appraisement  to  be  fixed  by  the  commissioners, 
but  not  to  exceed  the  sum  of  five  dollars  for  property  located  out- 
side of  any  incorporated  limits  and  three  dollars  for  property 
located  inside  of  any  incorporated  limits  for  each  property  so 
examined  and  appraised.  Each  appraiser  so  appointed  shall 
be  required  to  make  a  sworn  report  to  the  commissioners  of  his 
estimated  valuations  of  all  property  so  examined  and  appraised. 

Power  of  commissioners  to  issue  subpoenas. 

Sec.  S.  The  commissioners  shall  have  power  to  issue  sub- 
poenas and  require  attendance  of  any  or  all  trustees,  or  agents 
of  any  such  association,  corporation  or  society,  and  such  other 
witnesses  as  they  may  deem  necessary,  in  relation  to  its  affairs, 
transactions  and  condition,  and  any  such  person  so  served  with 
such  subpoena  may  upon  application  of  the  commissioner  be 
required  by  order  of  the  superior  court  of  the  county  where 
the  corporation,   association   or  society   has   its  principal   place 


530  S'SATUTES   AT   LARGE. 

of  Inisiness,  (o  appear  and  answer  such  pertinent  questions  as 
may  be  put  to  him  by  such  commissioner  and  be  required  to 
produce  such  books,  papers  or  documents  in  his  possession  as 
may  be  required  by  such  commissioner. 

Powers  and  duties  of  commissioners  when  associations  conduct 
business  in  an  unsafe  or  unautliorized  manner — Duty  of 
attorney  general,  and  judicial  proceedings — Liquidation. 
Sec.  9.  If  the  commissioners,  upon  any  examination,  or  from 
any  report  made  to  them  or  to  the  shareholders,  shall  find  that 
any  association,  corporation  or  society  licensed  by  them,  is  vio- 
lating the  provisions  of  its  charter  or  of  the  laws  of  this  state 
provided  for  its  government,  or  is  conducting  its  business  in  an 
unsafe  or  unauthorized  manner,  they  may,  by  an  order  addressed 
to  the  association,  corporation  or  society  so  offending,  direct  a 
discontinuance  of  such  violations  or  unsafe  practices  and  a  con- 
formity with  all  the  requirements  of  law  ;  and  if  such  association, 
corporation  or  society  shall  refuse  or  neglect  to  comply  with  such 
order  within  the  time  specified  therein  ;  or  if  it  shall  appear  to 
the  commissioners,  in  their  opinion,  that  any  such  association, 
corporation  or  society  is  in  an  unsafe  condition,  or  is  conducting 
its  business  in  an  unsafe  manner,  such  as  to  render  its  further 
proceeding  hazardous  to  the  public  or  to  those  having  funds  in  its 
custody,  they  shall  notify  the  attorney  general  of  such  facts  and 
furnish  him  with  a  statement  showing  its  condition,  as  the  same 
may  have  been  found  to  exist ;  at  the  same  time  they  shall  notify 
the  officers  of  such  association,  corporation  or  society  of  the  fact 
of  such  report  having  been  made  and  direct  them  to  cease  the 
transaction  of  any  new  business,  and  to  hold  all  moneys,  securi- 
ties and  property  intact,  pending  the  action  of  the  attoi-ney 
general  on  such  report.  The  attorney  general  shall  thereupon 
apply  to  the  superior  court,  of  the  county  in  which  such  associa- 
tion, corporation  or  society  has  its  principal  place  of  business, 
to  issue  an  injunction  restraining  it,  in  whole  or  in  part,  from 
further  proceeding  with  its  business  until  a  hearing  can  be  had. 
Such  court  may,  in  such  application,  issue  such  injunction,  and 
after  a  full  hearing,  may  dissolve  or  modify  it,  or  make  it  per- 
petual, and  may  make  such  orders  and  decrees  according  to  the 
course  of  proceedings  in  equity,  to  restrain  or  prohibit  the 
further  prosecution  of  business  by  such  association,  corporation 
or  society,  as  may  be  needful  in  the  premises;  and  may  appoint 
one   or   more  receivers   to   take   possession   of  its   property   and 


BUILDING   AND  LOAN   COMMISSlONEIiS.  531 

effects,  subject  to  such  directions  as  may  froni  time  to  time  be 
prescribed  by  the  court ;  or  it  may,  by  its  decree,  order  and  direct 
that,  in  lieu  of  the  appointment  of  a  receiver,  the  business  and 
affairs  be  liquidated  by  a  board  of  trustees  equal  in  number  to 
the  board  of  directors,  to  be  elected  by  the  shareholders,  at  a 
meeting  thereof,  to  be  called  for  such  purpose  and  held  within 
two  weeks  from  and  after  the  first  Monday  succeeding  the  date 
of  such  order  and  decree  ;  such  meeting  to  be  called  and  held  on 
the  order  of  the  commissioners,  one  of  whom  shall  be  present 
and  preside  until  such  election  shall  be  had;  whereupon  he  shall 
report  the  result  to  the  proper  court,  and  thereupon  the  term  of 
office  of  the  existing  board  of  directors  and  of  all  the  officers 
shall  cease  and  determine.  Such  board  of  trustees,  when  so 
elected,  shall  at  once  assume  office  and  have  possession  and  con- 
trol of  all  the  property  and  assets  for  the  purpose  of  liquidation  ; 
and  such  liquidation  shall  be  conducted  by  such  board  under  the 
supervision  of  the  commissioners,  who  shall  have  full  power  to 
limit  the  time  within  which  it  shall  be  accomplished,  and  to  limit 
the  number  of  employees  and  the  salaries  and  expenses  that  shall 
be  allowed  and  paid.  The  issuance  of  an  injunction,  in  the 
manner  herein  provided,  shall  operate  to  dissolve  or  stay  any 
and  all  attachments  or  executions  initiated  or  levied  within 
thirty  days  next  preceding  the  date  of  notification  of  the  attorney 
general  by  the  commissioners  ;  and,  pending  the  process  of  liqui- 
dation as  ordered  by  the  court,  no  attachment  or  execution  shall 
bo  levied,  nor  lien  created,  upon  any  of  the  property  of  such 
association,  corporation  or  society. 

Schedule  of  property  when  receivers  are  appointed. 

Sec.  10.  Whenever  a  receiver  or  receivers  are  appointed,  or 
trustees  elected  in  lieu  thereof,  the  commissioners  shall  require 
the  president  and  secretary  of  such  association,  corporation  or 
society  to,  and  such  officers  shall,  make  a  schedule  of  all  its 
property  and  make  oath  that  such  schedule  sets  forth  all  the 
property  which  such  association,  corporation  or  society  owns 
or  is  entitled  to,  and  deliver  said  schedule  and  possession  of  the 
property  to  the  receivers  or  to  the  trustees,  and  a  copy  of  such 
schedule  to  the  commissioners,  who  may  at  any  time  examine 
under  oath  such  president  and  secretary,  or  other  officers,  to 
determine  whether  or  not  all  the  property  which  such  associa- 
tion, corporation  or  society  ovns,  or  is  entitled  to,  has  been 
transferred  to  such  receivers  or  trustees. 


532  STATUTES   AT  LAEGE. 

Annual  report  required  of  receivers  or  trustees. 

Sec.  11.  Receivers,  or  trustees  elected  in  lieu  thereof,  must, 
at  least  annually,  make  due  report  of  all  their  doings  and 
accounts  to  the  proper  court,  and  immediately  thereafter  file 
a  copy  thereof  with  the  commissioners  ;  and  the  commissioners 
shall,  at  least  once  in  each  year  and  as  much  oftener  as  they 
may  deem  expedient,  examine  the  accounts,  doings  and  reports 
of  such  receivers  or  trustees,  and,  for  such  purpose,  shall  have 
full  and  free  access  to  all  books,  accounts  and  vouchers  relating 
to  any  such  liquidation,  and  any  defect,  irregularity,  or  mis- 
conduct on  the  part  of  such  receivers  or  trustees,  as  they  may 
find  to  exist,  shall  be.  by  the  commissioners,  reported  to  thi> 
proper  court.  [Section  11  amended  March  20,  1909;  in  effect 
immediately.] 

Upon  request,  commissioners  to  investigate  affairs  of  associa- 
tion. 
Sec.  12.  Upon  the  certificate,  under  oath,  of  any  ten  or  more 
ofiicers,  trustees,  creditors,  shareholders  or  depositors  of  any 
such  association,  corporation  or  society,  setting  forth  their 
interest  and  the  reason  for  the  making  of  such  examination, 
directed  to  the  commissioners,  and  requesting  them  so  to  do, 
they  shall  forthwith  make  a  full  investigation  of  its  affairs,  in 
the  manner  provided. 

Neglect  of  duty  by  commissioners  is  cause  for  removal. 

Sec.  13.  If  either  of  the  commissioners,  having  knowledge 
of  the  insolvent  condition,  or  of  any  violation  of  law  or  unsafe 
practice  of  any  such  association,  corporation  or  society  under 
their  supervision,  such  as  renders,  in  their  opinion,  the  conduct 
of  its  business  hazai'dous  to  its  shareholders,  creditors  or  depos- 
itors, shall  fail  to  take  the  proper  action  required  by  this  act, 
or  shall  refuse  or  neglect  to  perform  the  ofiicial  duties  pertain- 
ing to  his  office,  then  upon  conviction  thereof  the  office  of  such 
commissioner  shall  be  declared  vacant  by  the  governor,  and  a 
successor  be  appointed  to  fill  the  unexpired  term. 

Assessment  upon  associations  to  pay  salaries  and  expenses  of 
commissioners. 
Sec.  14.  To  meet  the  salaries  and  expenses  provided  for  by 
this  act,  the  commissioners  shall  require  every  association,  cor- 
poration or  society  licensed  by  them  or  coming  under  their 
supervision   to  pay  in  advance,  to  them,  and  prior  to  the  issu- 


BUILDING   AND  LOAN    COMMISSIONERS.  533 

ance  of  any  license,  its  pro  rata  amount  of  all  such  salaries  and 
expenses,  and  it  is  hereby  made  the  duty  of  every  such  associa- 
tion, corporation  or  society  to  pay  the  same ;  such  pro  rata  shall 
be  fixed  and  determined  by  the  proportion  which  its  assets  bear 
to  the  aggregate  assets  of  all  such  associations,  corporations,  or 
societies,  receiving  licenses,  as  shown  by  the  last  reports  of  such 
corporations,  associations,  or  societies  to  the  commissioners. 
On  or  before  the  thirtieth  day  of  December,  in  each  year,  the 
commissioners  shall  notify  each  of  such  associations,  corpora- 
tions or  societies,  through  the  United  States  mail,  of  the  amount 
assessed  and  levied  against  it  and  that  the  same  must  be  paid 
within  twenty  days  thereafter  ;  and  should  payment  not  be  made 
to  them  within  said  twenty  days,  they  shall  then  assess  and  col- 
lect a  penalty,  in  addition  thereto,  of  ten  per  cent  per  day  for 
each  day  that  such  payment  may  be  delayed  or  withheld  ;  pro- 
vided, hoicever,  that  in  the  levy  and  collection  of  such  assess- 
ment, no  such  association,  corporation  or  society  shall  be  assessed 
for,  nor  he  permitted  to  pay  less  than  ten  dollars  per  annum, 
and  any  such  association  hereafter  formed  in  this  state,  shall  be 
required  to  pay  not  less  than  one  dollar  per  month  for  the  unex- 
pired term  ending  December  thirty-first,  succeeding  application  ; 
and  in  like  manner  any  such  association  organized  outside  of  this 
state  shall  be  required  to  pay  not  less  than  three  dollars  per 
month,  for  such  unexpired  term,  for  its  first  license. 

Authority  to  transact  business  to  be  obtained  from  commis- 
sioners— Certified  copy  of  articles  of  incorporation  to  be 
filed — Renewal  of  license — Revocation. 
Seo.  15.  It  shall  be  the  duty  of  the  commissioners  to  require 
every  such  association,  corporation  or  society  coming  under  their 
supervision,  to  procure  from  them,  prior  to  the  transaction  of 
any  business,  a  certificate  of  authority  or  license  to  transact 
business  in  this  state ;  and  it  is  hereby  made  the  duty  of  every 
such  association,  corporation  or  society  to  comply  with  such 
requirement.  To  procure  such  license,  there  must  be  filed  with 
and  approved  by  the  commissioners,  a  certified  copy  of  its 
articles  of  incorporation,  constitution  and  by-laws  and  all  sub- 
sequent amendments  thereto,  accompanied  by  the  license  fee 
herein  provided  for ;  and  after  the  expiration  of  the  term  for 
which  a  license  may  have  been  granted  to  it,  no  such  associa- 
tion, corporation  or  society  shall  be  permitted  to  continue  to 
transact   business   without    first   procuring   a    renewal    of   such 


534  STATUTES   AT   LARGE. 

license  on  the  terms  provided  in  this  act,  and  any  such  asso- 
ciation, corporation  or  society  violating  the  provisions  hereof 
shall  be  subject  to  a  penalty  of  ten  per  cent  per  day  of  the 
amount  of  the  license  fee  required  to  be  paid  under  section 
fifteen  of  this  act,  in  addition  thereto,  for  each  day  during  the 
continuance  of  such  offense.  The  commissioners  are  authorized 
and  empowered  to  revoke  the  license  of  any  such  association, 
corporation  or  society  under  their  supervision,  the  solvency 
whereof  may  have  become  imperiled  by  losses  or  irregularities ; 
and  immediately  upon  the  revoking  of  any  such  license  they 
shall  report  the  facts  to  the  attorney  general,  who  shall  there- 
upon take  such  proceedings  as  are  provided  in  section  nine  of 
this  act. 

Associations  to  make  annual  report  of  financial  condition. 

Sec.  16.  The  commissioners  shall  require  every  association, 
corporation  or  society  licensed  by  them,  and  including  associa- 
tions in  liquidation,  within  thirty  days  after  the  close  of  its 
annual  fiscal  term,  to  make  a  report  to  them  in  writing,  verified 
by  the  oath  of  its  president  and  secretary,  showing  accurately  its 
financial  condition  at  the  close  of  such  term;  such  report  shall 
also  include  all  the  receipts  and  disbursements  and  income  and 
expenses  for  the  term,  together  with  such  statistical  and  other 
information  as  may  be  deemed  essential ;  all  and  every  of  such 
reports  shall  be  in  such  foi*m  as  the  commissioners  may  pre- 
scribe, and  upon  blanks  to  be  by  them  furnished  therefor.  Every 
such  association,  corporation  or  society  is  hereby  required  to 
make  and  file  all  such  reports  within  the  time  specified  herein, 
and  for  failure  or  neglect  so  to  do  shall  be  subject  to  a  penalty 
of  ten  dollars  per  day  for  each  and  every  day  the  same  shall  be 
delayed  or  withheld. 

Enforced  collection  of  assessments — Deposit  of  moneys  col- 
lected. 
Sec.  17.  The  collection  of  all  moneys  assessed  as  herein  pro- 
vided, for  the  payment  of  salaries  and  annual  expenses,  or  for- 
feitable as  fines  for  failure  to  make  payments  of  assessments, 
procure  licenses,  or  make  and  file  reports  as  herein  specified,  and 
due  from  any  such  association,  corporation  or  society  coming 
within  the  provisions  of  this  act,  or  imposed  as  a  penalty  for 
violation  of  any  order  or  summons,  may  be  enforced  by  the  com- 
missioners, by  action  instituted  in  any  court  of  competent  juris- 
diction ;  and  all  moneys  collected  or  received  by  the  commissioners 


BUILDING   AND  LOAN   COMMISSIONERS.  535 

under  this  act,  shall  be  deposited  with  the  state  treasurer,  to  be 
credited  to  a  fund  to  be  known  aud  designated  as  the  "building 
and  loau  inspection  fund"  ;  which  said  fund  shall  only  be  used  in 
defraying  the  salaries  and  expenses  provided  for  by  this  act. 

Term  of  present  commissioners  not  affected. 

Skc.  38.  This  act  shall  not  be  construed  as  affecting  the 
terms  of  office  of  the  commissioners  appointed  under  aud  by 
virtue  of  an  act  entitled  "An  act  creating  a  board  of  commis- 
sioners of  the  building  and  loan  associations  aud  prescribing- 
their  duties  and  powers,"  approved  March  twenty-third,  eighteen 
hundred  and  ninety-three,  and  acts  amendatory  thereof,  aud  such 
conmiissioners  are  hereby  created  the  building  and  loan  commis- 
sioners for  the  unexpired  terms  for  which  they  were  appointed, 
and  they  aud  their  secretary  are  hereby  vested  with  all  the 
powers  and  duties,  and  are  entitled  to  all  the  emoluments  herein 
provided  for ;  and  they  and  their  successors  in  office,  as  the 
building  and  loan  commissioners  herein  provided  for,  shall  suc- 
ceed to  all  the  rights,  privileges  and  benefits,  aud  to  the  control 
and  possession  of  all  records,  property  and  funds  in  the  posses- 
sion of  or  eujoyed  by  the  board  of  commissioners  of  the  building 
and  loau  associations  appointed  under  and  by  virtue  of  said  act 
of  March  twenty-third,  eighteen  hundred  aud  ninety-three. 

Repeal  of  conflicting  acts. 

Sec.  10.  All  acts  and  parts  of  acts,  including  an  act  entitled 
"An  act  creating  a  board  of  commissioners  of  the  building  and 
loan  associations  and  prescribing  their  duties  aud  powers," 
approved  March  twenty-third,  eighteen  hundred  and  ninety- 
three,  and  all  acts  amendatory  thereof,  are  hereby  repealed. 

Time  act  shall  take  effect. 

Sec.  20.  This  act  shall  take  effect  aud  be  in  force  from  and 
after  its  passage. 


536  STATUTES    AT   LARGE. 


CEMETERIES. 

Sec,  also,  Crematories. 

Sec  Civ.  C  §§  OOS-OIC),  for  incorjioriilirm  of  ccnu'lfry  corporn- 
lions. 

An    act   to   authorize    the    incorporation    of    rural    cemetery   asso- 
ciations. 

Approved  April  IS,  1S59;  stats.  1859,  p.   2S1. 
Amended  January  13,  18C4;  stats.  1803-4,  p.  12. 
Amended  March  31,  1891;  stats.  1891,  p.  2G4. 
Supplemented  March  1,  1899;  stats.  1899,  p.  30. 

Ed.  Note. — This  act  was  repealed  by  section  2  88  of  the  Civil 
Code  (in  effect  January  1,  1873),  and  is  applicable  only  to  such 
corporations  as  were  organized  under  its  authority  prior  to  that 
time,  but  is  included  in  this  compilation  of  present  laws  for  the 
reason  that  naturally,  owing  to  the  inherent  nature  of  such  cor- 
porations, a  large  number  throughout  the  state  are  still  in 
e.xi.stonce  and  operating  under  the  provisions  of  this  statute. 

1'lie  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Formation  of  corporation  and  election  of  trustees. 

Section  1.  Any  number  of  persons  residing  in  this  state,  not 
less  than  seven,  who  shall  desire  to  form  an  association  for  the 
purpose  of  procuring  and  holding  lands,  to  be  used  exclusively 
for  a  cemetery,  or  place  for  the  bui-ial  of  the  dead,  may  meet  at 
such  time  and  place,  as  they,  or  a  majority  of  them  may  agree, 
and  appoint  a  chairman,  or  secretary,  by  a  vote  of  the  majority 
of  the  persons  present  at  the  meeting,  and  proceed  to  form  an 
association,  by  determining  on  a  corporate  name,  by  which  the 
association  shall  be  called  and  known,  by  determining  on  the 
number  of  trustees,  to  manage  the  concerns  of  the  association, 
which  number  shall  not  be  less  than  six,  nor  more  than  twelve, 
and  thereupon  may  proceed  to  elect,  by  ballot,  the  number  of 
trustees,  so  determined  on,  and  the  chairman  and  secretary  shall, 
immediately  after  such  election,  divide  the  trustees,  by  lot,  into 
three  classes  :  those  in  the  first  class  to  hold  their  office  one  year ; 
those  in  the  second  class,  two  years  ;  and  those  in  the  third  class, 
throe  years;  but  the  trustees  of  each  class  may  be  reelected,  if 
they  shall  possess  the  qualification  hereinafter  mentioned.  The 
meeting  shall  also  determine  on  what  day,  in  each  year,  the 
future  annual  elections  of  trustees  shall  be  held. 


CEMETEKIES.  537 

Filing  of  certificate  of  meeting  and  election. 

Seo.  2.  The  chairman  and  secretary  of  the  meeting  shall, 
within  three  clays  after  such  meeting,  make  a  written  certificate, 
and  sign  their  names  thereto,  and  acknowledge  the  same  before 
an  officer  authorized  to  take  proof  and  acknowledgment  of  con- 
veyances, in  the  county  where  such  meeting  shall  have  been 
held,  which  certificate  shall  state  the  names  of  the  associates 
determined  upon  by  the  majority  of  the  persons  who  met ;  the 
number  of  trustees  fixed  on  to  manage  the  concerns  of  the  asso- 
ciation ;  the  names  of  the  trustees  chosen  at  the  meeting,  and 
their  classification,  and  the  day  fixed  on  for  the  annual  election 
of  trustees;  which  certificate  it  shall  be  the  duty  of  the  chair- 
man and  secretary  of  such  meeting  to  cause  to  be  filed  and 
recorded  in  the  office  of  the  county  clerk  of  the  county  in  which 
the  cemetery  grounds  are  situated,  in  a  book  to  be  appropriated 
to  the  recording  of  certificates  of  incorporation. 

Powers  of  association — Appointment  of  officers. 

Sec.  o.  Upon  such  certificate,  duly  acknowledged  and  filed 
as  aforesaid,  being  recorded,  the  association  mentioned  therein 
shall  be  deemed  legally  incorporated,  and  shall  be  a  body  politic 
and  corporate,  in  fact  and  in  name,  by  the  name  stated  in  the 
certificate,  and  by  their  corporate  name,  have  succession  and 
power : 

First — To  sue  and  be  sued  in  any  court. 

Second — To  make  and  use  a  common  seal,  and  alter  the  same 
at  pleasure. 

7'Mrd — To  purchase,  hold,  sell,  and  convey,  such  real  and  per- 
sonal estate  as  the  purposes  of  the  incorporation  sliall  require. 

Fourtli — To  appoint  such  officers,  agents,  and  servants,  as  the 
business  of  the  corporation  shall  require,  to  define  their  powers, 
proscribe  their  duties,  and  fix  their  compensation. 

Fifth — To  require  of  them  such  security  as  may  I)e  Ihought 
proper  for  the  fulfillment  of  their  duties,  and  to  remove  them  at 
will,  except  that  no  trustee  shall  be  removed  from  office  unless 
by  a  vote  of  two  thirds  of  the  whole  number  of  trustees,  or  by 
a  vote  of  a  majority  of  the  trustees,  on  a  written  request,  signed 
by  one  half  of  the  lot  owners. 

Sixth — To  make  by-laws  not  inconsistent  with  the  laws  of 
this  state,  for  the  organization  of  the  company,  (he  nianngemont 
of  the  property,  regulation  of  its  affairs,  and  for  carrying  on  all 
kinds  of  business  within  the  object  and  [lui'poses  of  the  company. 


538  STATUTES    AT   LARGE. 

The  affairs  and  property  of  such  associatious  shall  be  managofl 
by  the  trustees,  who  shall  annually  appoint,  from  among  their 
number,  a  president  and  vice-president,  and  shall  also  appoint  a 
secretary  and  treasurer,  who  shall  hold  their  places  during  the 
]ileasure  of  the  board  of  trustees,  and  the  trustees  may  require 
the  treasurer  to  give  security  for  the  faithful  perfoi*mance  of  the 
duties  of  his  oflSce. 

Acquiring  of  land  for  cemetery  purposes — Sale  of  lots  or  plats. 

Sec.  4.  Any  association  incorporated  under  this  act,  may 
take,  by  purchase  or  devise,  and  hold,  within  the  county  in 
which  the  certificate  of  their  incorporation  is  recorded,  not 
exceeding  three  hundred  and  twenty  acres  of  land,  to  be  held 
and  occupied  exclusively  for  a  cemetery  for  the  burial  of  the 
dead.  Such  land,  or  such  parts  thereof  as  may  from  time  to 
time  be  required  for  that  purpose,  shall  be  surveyed  and  sub- 
divided into  lots  or  plats  of  such  size  as  the  trustees  may  direct, 
with  such  a\puues,  paths,  alleys,  and  walks,  as  the  trustees  deem 
proper ;  and  a  map  or  maps  of  such  surveys  shall  be  filed  in  the 
office  of  the  county  recorder  of  the  county  in  which  the  land  shall 
be  situated.  And  after  filing  such  map,  the  trustees  may  sell 
and  convey  the  lots  or  plats  designated  upon  such  map.  upon 
such  terms  as  shall  be  agreed  upon,  and  subject  to  such  con- 
ditions and  restrictions,  to  be  inserted  in  or  annexed  to  the  con- 
veyances, as  the  trustees  shall  prescribe.  The  conveyances  to 
be  executed  under  the  common  seal  of  the  association,  and  signed 
by  the  president  or  vice-pi'esident,  and  the  treasurer  of  the  asso- 
ciation. Any  association  incorporated  under  this  act,  may  hold 
j)orsonal  property  to  an  amount  not  exceeding  fiv(>  thousand 
dollars,  besides  what  may  arise  from  the  sale  of  Ints  or  plals. 

Annual  election  of  trustees — Who  qualified  to  vote. 

Sec.  5.  The  annual  election  for  trustees,  to  supply  the  place 
of  those  whose  term  of  office  expires,  shall  be  holden  on  the  day 
mentioned  in  the  certificate  of  incorporation,  and  at  such  hour 
and  place  as  the  trustees  shall  direct ;  at  which  election  shall  be 
chosen  .such  number  of  trustees  as  will  supply  the  places  of 
those  whose  term  expires.  Tlie  trustees  chosen  at  any  election 
subsequent  to  the  first,  shall  hold  their  places  for  three  years, 
and  until  others  shall  be  chosen  to  succeed  them.  The  election 
shall  be  by  ballot,  and  every  person  of  full  age,  who  shall  be 
the  proprietor  of  a   l<jt  or  plat  in   (lu>  cemetery  of  the  associa- 


CEMETERIES.  539 

tion,  coutaiuing  not  less  than  two  hundred  square  feet  of  land, 
or  if  there  be  more  than  one  proprietor  of  any  such  lot,  or  plat, 
then  such  one  of  the  proprietors  as  the  majority  of  joint  pro- 
prietors shall  designate  to  represent  such  lot  or  plat,  may,  either 
in  person  or  by  proxy,  give  one  vote  for  each  plat,  or  lot,  of  the 
dimensions  aforesaid  ;  and  the  persons  receiving  a  majority  of 
all  the  votes  given  at  such  election,  shall  be  trustees,  to  succeed 
those  vv'hose  term  of  office  expires.  But  in  all  elections  after  the 
first,  the  trustees  shall  be  chosen  from  among  the  proprietors  of 
lots,  or  plats,  and  the  trustees  shall  have  power  to  fill  any 
vacancy  in  their  number  occurring  during  the  period  for  which 
they  hold  their  oflicc.  Public  notice  of  the  annual  elections  shall 
be  given  in  such  manner  as  the  by-laws  of  the  corporation  shall 
prescribe. 

Annual  report  of  trustees. 

8ec.  6.  The  trustees,  at  each  annual  election,  shall  make 
reports  to  the  lot  proprietors  of  their  doings,  and  of  the  manage- 
ment and  condition  of  the  property  and  concerns  of  the  asso- 
ciation. If  the  annual  election  shall  not  be  held  on  the  day  fixed 
in  the  certificate  of  incorporation,  the  trustees  shall  have  power 
to  appoint  another  day.  not  more  than  sixty  days  thereafter,  and 
shall  give  public  notice  of  the  time  and  place  at  which  time  the 
election  may  be  held,  with  like  effect  as  if  holden  on  the  day 
fixed  on  in  the  certificate.  The  office  of  the  trustees  chosen  at 
such  time,  to  exi)ire  at  the  same  time  as  if  they  had  been  chosen 
at  the  day  fixed  by  the  certificate  of  incorjioration. 

Issuance  of  bonds — Application  of  net  Income. 

Sec.  7.  After  its  formation  in  the  manner  provided  in  the 
preceding  section,  the  corporation  shall  proceed  to  purchase  suit- 
able grounds  for  the  proposed  cemetery,  and  to  the  vendor  thereof 
they  are  authorized  to  issue  the  bonds  of  the  corporation  for  the 
amount  of  the  purchase  money,  bearing  interest  not  exceeding 
the  rate  of  twelve  per  cent  per  annum,  but  payable  out  of  sixty 
per  cent  of  the  proceeds  of  the  cemetery,  as  the  same  shall  be 
realized,  and  not  otherwise.  Sixty  per  cent  at  least  of  the  pro- 
ceeds of  all  sales  of  lots,  plats,  or  graves,  shall  be  first  appro- 
priated to  the  payment  of  the  said  bonds  and  interest  aforesaid, 
payable  at  least  once  in  three  months  to  the  bondholders,  until 
all  are  paid,  and  the  residue  thereof  to  be  used  in  preserving, 
iniproNinu-.  and  embellishing  tlie  said  cemetery  grounds  and  the 


540  STATUTES   AT   LAKGK. 

avenues  or  roads  leading  thereto,  and  to  defraying  the  incidental 
expenses  of  the  cemetery  establishment;  and  after  payment  of 
the  purchase  money  and  interest  aforesaid,  and  all  debts  con- 
tracted therefor,  and  for  surveying-  and  laying  out  the  land,  the 
proceeds  of  all  future  sales  shaT!  be  appropriated  to  the  improve- 
ment, embellishment,  and  preservation  of  such  cemetery,  and  for 
incidental  expenses,  and  to  no  other  purpose  or  object;  provided, 
that  any  association  incorporated  under  this  act  by  the  members 
of  the  Order  of  Free  and  Accepted  Masons,  the  Independent 
Order  of  Odd  Fellows,  or  by  the  members  of  any  other  benevolent 
or  charitable  society  in  the  city  and  county  of  San  Francisco, 
may  apply  the  surplus  or  net  income  of  such  cemetery  association 
to  the  board  of  relief  or  other  committee  established  by  such 
order  or  society  for  the  purposes  of  charity.  [Sectimi  7  amendi'd 
January  13,  1S64.] 

Vandalism. 

Sec.  8.  Any  person  who  shall  willfully  destroy,  mutilate, 
deface,  injure,  or  remove,  any  tomb,  monument,  grave-stone, 
building,  or  other  structure,  placed  in  any  cemetery  of  any  asso- 
ciation incorporated  vmder  this  act,  or  any  fence,  railing,  or 
other  work,  for  the  protection  or  ornament  thereof,  or  of  any 
tomb,  monument,  or  grave-stone,  or  other  structure  aforesaid, 
or  of  any  plat  or  lot  within  such  cemetery,  or  shall  willfully 
destroy,  cut,  break,  or  injure,  any  tree,  shrub,  or  plant,  within 
the  limits  of  such  cemetery,  shall  be  deemed  guilty  of  a  misde- 
meanor, and  such  offender  shall  also  be  liable  in  an  action  of 
trespass,  to  be  brought,  in  all  such  cases,  in  the  name  of  such 
association,  to  pay  all  such  damages  as  shall  have  been  occa- 
sioned by  his  unlawful  act,  or  acts.  Such  money,  when  recov- 
ered, shall  be  applied,  by  the  trustees,  to  the  reparation,  or 
restoration,  of  the  property  so  destroyed,  or  injured. 

Improvement  or  embellishment. 

Sec.  0.  Any  association  incorporated  pursuant  to  this  act, 
may  take  and  hold  any  property,  real,  or  personal,  bequeathed, 
or  given  upon  trust,  to  apply  the  income  thereof,  under  the 
direction  of  the  trustees  of  such  association,  for  the  improve- 
ment or  embellishment  of  such  cemetery,  or  the  erection  or 
preservation  of  any  buildings,  structures,  fences,  or  walks, 
erected,  or  to  be  erected,  upon  the  lands  of  such  cemetery  asso- 
ciation, or  ui)0u  the  lols,  or  p];ils,  of  any  of  the  proprietors;  or 


CEMETERIES.  541 

for  the  repair,  prcservatiou,  erection,  or  removal  of  any  tomb, 
monument,  grave-stone,  fence,  railing,  or  other  erection,  on  or 
around  any  cemetery,  lot,  or  plat,  or  for  planting,  or  cultivating 
trees,  shrubs,  flowers,  or  plants,  in  or  around  any  such  lot.  or 
plat,  or  for  improving  or  embellishing  such  cemetery,  or  any  of 
the  lots,  or  plats,  in  any  other  manner  or  form,  consistent  with 
the  design  and  purposes  of  the  association,  according  to  the 
terms  of  such  grant,  devise,  or  bequest. 

Exempt  from  taxation  and  sale  on  execution. 

Sec.  10.  The  cemetery  lands  and  property  of  any  associa- 
tion, formed  pursuant  to  this  act,  shall  be  exempt  from  all 
public  taxes,  rates,  and  assessments,  and  shall  not  be  liable  to  be 
sold  on  execution,  or  be  applied  in  payment  of  debts  due  from 
any  individual  proprietors.  But  the  proprietors  of  lots,  or  plats, 
in  such  cemeteries,  their  heirs,  or  devisees,  may  hold  the  same' 
exempt  therefrom,  so  long  as  the  same  shall  remain  dedicated 
to  the  purpose  of  a  cemetery  ;  and,  during  that  time,  no  street, 
road,  avenue,  or  thoroughfare,  shall  be  laid  through  such  ceme- 
tery, or  any  part  of  the  lands  held  by  such  association,  for  the 
purposes  aforesaid,  without  the  consent  of  the  trustees  of  such 
association,  except  by  special  permission  of  the  legislature  of  the 
state. 
Title  to  lots  inalienable. 

Sec.  11.  Whenever  the  said  lauds  shall  be  laid  oft'  into  lots, 
or  plats,  and  such  lots,  or  plats,  or  any  of  them,  shall  be  trans- 
ferred to  individual  holders,  and  after  there  shall  have  been  an 
interment  in  a  lot,  or  plat,  so  transferred,  such  lot,  or  plat,  from 
the  time  of  such  interment,  shall  be  forever  thereafter  inalien- 
able, and  shall,  upon  the  death  of  the  holder  or  proprietor 
thereof,  descend  to  the  heirs  at  law  of  such  holder  or  proprietor, 
and  to  their  heirs  at  law  forever;  provided,  nevertheless,  that 
any  one  or  more  of  such  heirs  at  law  may  release,  to  any  other 
of  the  said  heirs  at  law.  his,  her,  or  their,  interest  in  the  same, 
on  such  conditions  as  shall  be  agreed  on  and  specified  in  such 
release,  which  release  shall  be  recorded  with  the  county  recorder 
of  the  county  within  which  the  said  cemetery  shall  be  situated ; 
and  provided,  further,  that  the  body  of  any  deceased  person  shall 
not  be  interred  in  such  lot,  or  plat,  unless  it  be  the  body  of  a 
person  having,  at  the  time  of  such  decease,  an  interest  in  such  lot 
or  plat,  or  the  relative  of  some  person  h.aving  such  interest,  or 
Ihe  wife  of  such  person,  or  her  relative,  except  by  the  consent 
of  all  per.sons  having  an  interest  in  such  lot,  or  plat. 


542  STATUTES   AT   LARGE. 

Rights  of  former  owners. 

Sec.  12.  In  case  the  grounds  purchased  for  cemetery  pur- 
poses, in  accordance  with  section  seven  of  this  act,  shall  have 
been  used  as  a  cemetery  previous  to  such  purchase,  then  those 
who  are  lot  owners,  at  the  time  of  the  purchase,  shall  have,  and 
he  entitled  to,  all  the  privileges  they  would  be  entitled  to  by 
purchase  from  a  corporation  formed  as  aforesaid. 

Owner  of  lot  in  cemetery  may  convey  same  when  bodies  are 
removed. 
Sec.  13.  Whenever  all  the  bodies  buried  in  any  lot  or  plot, 
iu  this  act  referred  to.  shall  have  been  removed  therefrom,  with 
the  consent  of  a  majority  of  the  board  of  directors  of  the  cor- 
poration owning  said  cemetery,  it  shall  be  lawful  for  the  owners 
of  said  lot  or  plot,  with  the  consent  of  a  majority  of  said 
directors,  to  transfer  the  same  by  deed.  [Section  1.3  added 
March  33,  1891.] 

]52  Cal.  468. 


An  act  supplemental  to  an  act  entitled  "An  act  to  authorize 
the  Incorporation  of  rural  cemetery  associations,'  approved 
April  28,  1859,  authorizing  such  association  to  erect,  pur- 
chase, or  lease  buildings  and  furnaces  and  other  works  for 
cremation  of  human  bodies;  also,  to  erect  or  lease  buildings 
in  which  shall  be  entombed  only  the  ashes  of  cremated 
dead,  to  make  provision  for  the  care  of  the  burial  places 
and  ashes  of  the  dead;  also,  to  provide  for  the  cremation  of 
the  unclaimed  dead  and  bodies  liable,  if  interred,  to  spread 
disease. 

Approved  March  1,  ISU'J;  .stats.  18!)!»,  \>.  ;J<;. 

Eu.  Note. — The  date  of  approval  of  the  act  to  wliicli  this  iu-t 
is  supplemental,  should  be  April  18,  1830,  instead  of  April  28, 
1859,  as  it  appears  in  the  above  title. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  folloics: 

Cremation  associations — Rights  and  privileges. 

Section  1.  Associations  incorporated  under  the  act  of  which 
this  act  is  supplementary,  shall,  in  addition  to  the  powers 
granted  by  said  act,  have  authority  to  purchase,  lease,  or  erect 
buildings  and  api)liances  to  be  used  exclusively  for  the  purpose 
of  cremating  human  bodies,  and  they  may  purchase,  or  lease, 
and  hold  laud  necessary  for  cremation  purposes,  or  for  the  erec- 


CEMETERIES.  543 

tiou  of  columbai-iums  for  the  ontombiug  of  the  ashes  of  the 
cremated,  when  inclosed  in  metal,  or  stone,  or  cement  vessels, 
and  not  otherwise ;  but  no  uncromated  body  shall  be  interred  or 
placed  for  any  time  whatever  inside  of  the  walls,  or  in  the  walls, 
of  a  place  where  the  ashes  of  the  cremated  are  deposited. 

Care  of  property. 

Sec.  2.  Such  associations  shall  invest  their  funds  and  use 
the  proceeds  thereof,  after  current  expenses  are  paid,  for  the 
perpetual  care  of  grounds,  lots,  buildings,  and  niches,  according 
to  contracts  made  and  to  be  made  with  patrons,  and  in  con- 
ducting its  business  such  association  shall  have  the  same  powers 
granted  by  law  to  corporations  in  general ;  provided,  they  shall 
have  no  authority  to  contract  any  pecuniary  obligation  what- 
ever, nor  shall  they  have  power  to  levy  or  collect  assessments. 

Municipal  authorities  may  order  cremation  of  unknown  or 
pauper  dead — Cremation  not  compulsory. 
Sec.  3.  In  case  of  epidemic  or  the  prevalence  of  contagious 
diseases,  or  otherwise,  the  proper  authorities  of  any  county, 
city  and  county,  city,  or  town,  may  order  the  unclaimed  or 
unknown  dead,  and  the  dead  who  die  in  public  institutions  under 
the  control  of  any  county,  city  and  county,  city,  or  town,  and 
the  dead  commonly  buried  at  public  expense,  cremated,  and 
their  ashes  immured,  or  otherwise  preserved  in  receptacles  in 
columbariums.  or  interred  in  burial  places,  and  human  bodies, 
and  parts  of  bodies,  used  in  medical  or  other  schools  (except 
specimens  to  be  preserved)  shall  not  be  cast  into  the  waters  of 
the  state,  nor  on  the  ground,  nor  in  receptacles  for  refuse  matter, 
nor  in  vaults,  nor  in  sewers,  but  shall  either  bo  buried  as  deep 
in  the  ground  as  is  by  law  rc(juircd  for  dead  bodies,  or  cremated, 
iis  in  this  agt  provided.  But  the  remains  of  a  per.son  shall  not 
be  cremated  by  compulsion,  under  the  provisions  of  this  section, 
if  he  or  his  family,  or  any  member  thereof,  or  his  church  or 
spiritual  adviser  objects. 

Penalty  for  violation  of  this  act. 

Sec.  4.  A  violation  of  any  of  the  provisions  of  this  act  is  a 
misdemeanor. 

Time  act  shall  take  effect. 

Sec.  5.     This  act  shall  be  in  force  from  the  day  of  its  passage. 

(See,  also,  note  to  act  of  1859,  atite,  to  which  this  act  is  sup- 
plemental.) 


544  STATUTES   AT   LARGE. 


An    act   to   provide  the   manner   of   execution   of   deeds    by  ceme- 
tery  corporations. 

Approved  March  26,  1895;  stats.  189.5,  p.  75. 

The  people  of  the  State  of  California,  rc2)rescntc(l  in  senate  and 
assei}ihli/,  do  enact  as  follows: 

In  whose  name  deeds  shall  be  executed. 

Section  1.  All  deeds  or  conveyances  executed  by  cemetery 
associations  or  incorporations  within  this  state,  shall  be  executed 
in  the  name  of  the  corporation  or  association,  under  the  seal 
thereof,  by  the  president,  or  vice-president,  and  secretary  thereof. 

Repeal  of  conflicting  acts. 

Sec.  2.  All  acts  and  parts  of  acts  in  conflict  with  this 
statute,  in  so  far  as  they  conflict  with  the  same,  are  hereby 
repealed. 

Time  act  shall  take  effect. 

Sec.  o.  Thi.s  act  shall  take  circct  ami  l»e  in  force  from  and 
after  its  passage. 


CERTIFICATES. 

An  act  providing  for  the  issuance  of  duplicate  certificates,  v/here 
certificates  issued  under  authority  of  law  have  been  lost  or 
destroyed   by  conflagration  or  other  public  calamity. 

Approved  .June  IG,   lOOC;  stats.  1900,  p.  71. 

'J'ltc  people  of  the-   State  of  California,  rcpresenlrd  in  senate  and 
assembly,  do  enact  as  folloivs: 

Issuance  of  duplicate  certificates. 

Section  1.  Whenever  any  public  board  or  officer  is  author- 
ized by  law  to  issue  any  certificate  of  any  kind,  and  the  records 
in  the  office  of  such  board  or  officer  show  the  issuance  of  such 
certificate,  and  it  is  made  to  appear  by  affidavit  that  such  cer- 
tificate has  been  lost  or  destroyed  by  conflagration  or  other 
ind)lic  calaniily.  such  board  or  officer  may  issue  a  duplicate  of 
siiili  (('rtilicalc,  whicli  shall  recite  the  issuance  and  loss  or 
(li'sl ruction  of  sucli  oriiiinal  certificate,  and  shall  have  the  same 


CEKTIFICATES.  545 

force  and  effect  as  such  original  certificate ;  provided,  that  this 
act  shall  not  apply  to  certificates  of  acknowledgments. 

Time  act  shall  take  effect. 

Sec.  2.     This  act  shall   dike  eftVct  imincdint.-l.v. 


CHAMBERS  OF  COMMERCE. 

An  act  to  provide  for  the  formation  of  chambers  of  commerce, 
boards  of  trade,  mechanic  institutes,  and  other  kindred 
protective  associations. 

Approved  March  31,  1866;  stats.  1865-6,  p.  469;  amended  1867-8, 
p.  5  ;  1885,  p.  76.  Superseded  by  sections  591  to  592e  of  the 
Civil  Code,  as  enacted  in  1905. 


CHILDREN. 

An    act   for   the   incorporation   of   societies   for   the    prevention    of 
cruelty  to  children. 

Approved  April  3,  1876;  stats.  1875-6,  p.  830.  Subject-matter 
codified  by  tlie  legislature  of  1905  (see  sections  607  to  607£r  of 
tlie  Civil  Code). 


COMBINATIONS. 

An    act    to    prevent    combinations    to    obstruct    the    sale    of    live 
stock    in    the   State   of    California. 

Approved  February  27,  1893;  stats.   1893,  p.   30. 

The  pco2)le  of  the  State  of  California,  represented  in  senate  and 
asseniMii,  do  enact  as  follows: 

Combinations  to  prevent  buying  live  stock  prohibited. 

Section  1.  It  shall  l)e  unlawful  for  any  two  or  more  per- 
sons or  corporations  to  combine  or  agree  together  to  do  any  act 
which  will,  in  any  respect,  prevent  any  person  from  buying  live 
stock  at  any  place  in  this  state  from  any  person  having  the 


546  STATUTES   AT  LARGE. 

same  for  sale,  either  for  himself  or  as  the  representative  or  agent 
of  the  owner  of  the  same. 

Corporations  prohibited. 

Sec.  2.  It  shall  be  unlawful  for  any  corporation  organized 
under  the  laws  of  this  state,  or  any  board  of  directors  or  trus- 
tees, or  stockholders,  or  agents,  or  olBcers  of  any  corporation,  to 
have,  pass,  or  enforce  any  rule,  by-law,  or  regulation  wherel)y 
any  officer,  stockholder,  member,  shareholder,  agent,  servant 
thereof,  or  any  other  person  in  any  way  interested  in  or  con- 
nected with  such  corporation,  shall  in  any  respect  be  prohibited, 
prevented,  or  enjoined  from  buying  live  stock  from  any  other 
person  having  such  live  stock  for  sale,  either  as  owner  thereof, 
or  as  the  agent,  representative,  or  assistant  of  such  owner,  in 
any  market  in  this  state,  where  live  stock  is  brought  to  be  sold. 

By-laws  of  corporations. 

Sec.  3.  Every  rule,  regulation,  or  by-law  of  any  corporation 
doing  business  in  this  state,  which  has  for  its  purpose,  or  which, 
directly  or  indirectly,  tends  to  prevent  its  members  or  stock- 
holders from  freely  purchasing  live  stock  from  any  person  law- 
fully having  the  same  for  sale,  upon  any  live  stock  market  of 
this  state,  are  hereby  declared  to  be  contrary  to  the  public 
policy  of  this  state,  and  unlawful  and  void  ;  and  any  person  or 
persons  who  shall  attempt,  directly  or  indirectly,  to  enforce  any 
such  rule,  regulation  or  by-law,  shall  be  deemed  guilty  of  a  mis- 
demeanor, and  in  addition  to  the  penalties  prescribed  by  this  act 
shall  be  personally  liable  for  all  damages  which  may  arise  from 
the  enforcement  of  such  rule,  regulation,  or  by-law,  to  any  per- 
son damaged  thereby. 

Trusts,  combinations,  or  conspiracies. 

Sec.  4.  No  trusts,  combinations,  or  conspiracies  shall  be 
organized  or  exist  in  this  state,  to  prevent  any  person  or  persons, 
or  corporation,  from  selling  live  stock  on  commission,  for  such 
an  amount  of  commission  as  any  person  engaged  in  the  business 
may  see  fit  to  charge ;  and  all  rules,  regulations,  by-laws,  or 
agreements  of  any  corporation,  association,  society,  or  combina- 
tion of  persons,  whereby  any  such  corporation,  society,  associa- 
tion, or  combination  of  individuals  are  required  to  charge  not 
less  than  a  given  sum  for  commissions,  or  whereby  any  person 
or   commission    merchant    is,    in    any    respect,    restrained    from 


COMBINATIONS.  547 

chargiug  less  than  a  certain  fixed  sum  for  his  services  as  such 
commission  merchant  in  the  sale  of  live  stock,  are  hereby 
declared  to  be  contrary  to  the  public  policy  of  this  state,  and 
unlawful ;  and  any  person  who  shall  enter  into  any  such  trust, 
combination,  or  conspiracy,  or  who  shall  enforce  or  aid,  abet, 
assist,  or  encourage  the  enforcement  of  any  such  rule,  regulation, 
by-law,  or  agreement,  shall  be  liable  to  the  penalties  prescribed 
by  this  act,  and  also  shall  be  personally  liable  to  any  person, 
individual,  society,  or  corporation  who  may  be  injured  in  his 
property  or  business  thereby,  to  the  full  extent  of  the  injury 
resulting  therefrom. 

Selling  live  stock  at  any  market. 

Sec.  5.  Whoever  shall,  directly  or  indirectly,  be  a  party  to 
any  combination,  conspiracy,  or  association,  which  attempts, 
directly  or  indirectly,  to  prevent  any  other  person  from  freely 
selling  live  stock  at  any  market  in  this  state  for  such  persons  as 
see  fit  to  engage  his  services,  or  shall  endeavor  to  compel,  directly 
or  indirectly,  any  person  to  charge  not  less  than  a  fixed  minimum 
sum  for  services  in  the  sale  of  live  stock,  or  shall,  in  any  way, 
hinder  or  prevent  another  from  lawfully  selling  live  stock  for 
another,  for  such  rate  of  commission  as  may  be  agreed  upon  by 
the  owner  of  the  live  stock  and  the  commission  merchant,  .'ihall 
be  deemed  guilty  of  a  misdemeanor,  and  suffer  the  penalties  pre- 
scribed by  this  act,  and  shall  be  personally  liable  to  any  one 
aggrieved  thereby,  for  the  full  amount  of  any  damage  sustained 
by  such  person. 

Punishment. 

Sec.  0.  Any  one  who  shall  violate  the  provi-sions  of  this  act 
shall  be  punished  by  a  fine  in  any  sum  not  less  than  five  hun- 
dred dollars,  and  not  more  than  five  thousand  dollars,  or  by 
imprisonment  in  the  county  jail  not  exceeding  one  year,  or  by 
either  or  both,  in  the  discretion  of  the  court,  and  shall  be  liable, 
in  civil  action,  to  any  person  aggrieved,  in  such  damages  as  he 
or  she  may  have  sustained  by  the  violation  of  this  act. 

Time  act  shall  take  effect. 

Sec.  7.  This  act  shall  take  effect  and  be  in  force  from  and 
after  its  passage. 


548  STATUTES   AT   LARGE. 


An  act  to  limit  the  meaning  of  the  word  "conspiracy"  and  also 
the  use  of  "restraining  orders"  and  "injunctions,"  as  applied 
to  disputes  between  employers  and  employees  in  the  State  of 
California. 

Approved  March  20,  1903;  stats.  1903,  p.  2S9. 

The  i)cople  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  folloios: 

Combinations  in  trade  disputes  not  criminal,  when. 

Section  1.  No  agreement,  combination,  or  contract  by  or 
between  two  or  more  persons  to  do  or  procure  to  be  done,  or 
not  to  do  or  procure  not  to  be  done,  any  act  in  contemplation 
or  furtherance  of  any  trade  dispute  between  employers  and 
employees  in  tlie  State  of  California  shall  be  deemed  criminal, 
nor  shall  those  engaged  therein  be  indictable  or  otherwise  pun- 
ishable for  the  crime  of  conspiracy,  if  such  act  committed  by  one 
person  would  not  be  punishable  as  a  crime,  nor  shall  such  agree- 
ment, combination,  or  contract  be  considered  as  in  restraint  of 
trade  or  commerce,  nor  shall  any  restraining  order  or  injunction 
be  issued  with  relation  thereto.  Nothing  in  this  act  shall  exempt 
from  punishment,  otherwise  than  as  herein  excepted,  any  persons 
guilty  of  conspiracy,  for  which  punishment  is  now  provided  by 
any  act  of  the  legislature,  but  such  act  of  the  legislature  shall,  as 
to  the  agreements,  combinations,  and  contracts  hereinbefore 
referred  to,  be  construed  as  if  this  act  were  therein  contained ; 
provided,  that  nothing  in  this  act  shall  be  construed  to  authorize 
force  or  violence,  or  threats  thereof. 

Time  act  shall  take  effect. 

Sec.  2.     This  act  shall  take  effect  immediately. 


COMBINATIONS.  549 


An  act  to  define  trust  and  to  provide  for  criminal  penalties  and 
civil  damages,  and  punishment  of  corporations,  persons, 
firms,  and  associations,  or  persons  connected  with  them, 
and  to  promote  free  competition  in  commerce  and  all  classes 
of  business  in  this  state. 

Approved  March  23,  1907  ;  stats.  1907,  p.  984. 
Amended  March  20,  1909  ;  stats.  1909,  p.  593. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  folloics: 

A  trust  defined — Trade  restrictions — Limiting  production — Pre- 
venting competition — Fixing  prices — Agreements. 
Section  1.  A  trust  is  a  combination  of  capital,  skill  or  acts 
by  two  or  more  persons,  firms,  partnerships,  corporations  or 
associations  of  persons,  or  of  any  two  or  more  of  them  for  either, 
any  or  all  of  the  following  purposes  : 

1.  To  create  or  carry  out  restrictions  in  trade  or  commerce. 

2.  To  limit  or  reduce  the  production,  or  increase  the  price  of 
merchandise  or  of  any  commodity. 

3.  To  prevent  competition  in  manufacturing,  making,  transpor- 
tation, sale  or  purchase  of  merchandise,  produce  or  any  com- 
modity. 

4.  To  fix  at  any  standard  or  figure,  whereby  its  price  to  the 
public  or  consumer  shall  be  in  any  manner  controlled  or  estab- 
lished, any  article  or  commodity  of  merchandise,  produce  or  com- 
merce intended  for  sale,  barter,  use  or  consumption  in  this  state. 

.">.  To  make  or  enter  into  or  execute  or  carry  out  any  contracts, 
obligations  or  agreements  of  any  kind  or  description,  by  which 
they  shall  bind  or  have  bound  themselves  not  to  sell,  dispose  of 
or  transport  any  article  or  any  commodity  or  any  article  of 
trade,  use,  merchandise,  commerce  or  consumption  below  a 
common  standard  figure,  or  fixed  value,  or  by  which  they  shall 
agree  in  any  manner  to  keep  the  price  of  such  article,  commodity 
or  transportation  at  a  fixed  or  gi'aduatod  figure,  or  by  which 
they  shall  in  any  manner  establish  or  settle  the  price  of  any 
article,  commodity  or  transportation  between  them  or  themselves 
and  others,  so  as  to  directly  or  indirectly  preclude  a  free  and 
unrestricted  competition  among  themselves,  or  any  purchasers  or 
consumers  in  the  sale  or  transportation  of  any  such  article  or 
commodity,  or  by  which  they  shall  agree  to  pool,  combine  or 
directly  or  indirectly  unite  any  interests  (hat  they  may  have 
connected  with  the  sale  or  transportation  of  any  such  article  oi' 


550  STATUTES   AT   LARGE. 

commodity,  that  its  price  might  in  any  manner  be  alTeclecl. 
Every  such  ti'ust  as  is  defined  herein  is  declared  to  bo  unlawful, 
against  public  policy  and  void:  provided  that  no  agreement,  com- 
bination or  association  shall  be  deemed  to  be  unlawful  or  within 
the  provisions  of  this  act,  the  object  and  business  of  which  are  to 
conduct  its  operations  at  a  I'easonable  profit  or  to  market  at  a 
reasonable  profit  those  products  which  can  not  otherwise  be  so 
marketed;  provided  further,  that  it  shall  not  be  deemed  to  be 
Tinlawful,  or  within  the  provisions  of  this  act,  for  persons,  firms 
or  corporations,  engaged  in  the  business  of  selling  or  manufac- 
turing commodities  of  a  similar  or  like  character,  to  employ, 
form,  organize  or  own  any  interest  in  any  association,  firm  or 
corporation,  having  as  its  object  or  purpose  the  transportation, 
marketing  or  delivery  of  such  commodities.  [Section  1  amended 
March  20.  1009;  in  effect  im.mediately.] 

Violation  of  act — Proceedings  authorized. 

Sec.  2.  For  a  violation  of  any  of  the  provisions  of  this  act 
by  any  corporation  or  association  mentioned  herein,  it  shall  be 
the  duty  of  the  attorney  general  or  the  district  attoi-ney  of  the 
proper  county,  to  institute  proper  suits  or  quo  warranto  pro- 
ceedings in  any  court  of  competent  jurisdiction  for  the  for- 
feiture of  its  charter  rights,  franchises  or  privileges  and  powers 
exercised  by  such  corporation  or  association,  and  for  the  dis- 
solution of  the  same  under  the  general  statutes  of  the  state. 

Agreements  permitted. 

Sec.  2y-2-  It  shall  be  lawful  to  enter  into  agreements  or 
form  associations  or  combinations,  the  purpose  and  effect  of 
which  shall  be  to  promote,  encourage  or  increase  competition 
in  any  trade  or  industry,  or  which  are  in  furtherance  of  trade. 
[New  section;   added   March  20,   1009;    in   effect  immediately.! 

Foreign  corporations  amenable — Duty  of  attorney  general  and 
secretary  of  state. 
Sec.  3.  Every  foreign  corporation,  as  well  as  every  foreign 
association,  exercising  any  of  the  powers,  franchises  or  func- 
tions of  a  corporation  in  this  state,  violating  any  of  the  pro- 
visions of  this  act,  is  hereby  denied  the  right  and  prohibited 
from  doing  any  business  in  this  state,  and  it  shall  be  the  duty 
of  the  attorney  general  to  enforce  this  provision  by  bringing 
proper  proceedings  by  injunction  or  otherwise.  The  secretary 
of  state  shall  l)e  authorized   to  rc\oke  the  license  of  any  such 


COMBINATIONS.      .  551 

corporatiou  or  association   heretofore  authorized   hy   him   to  do 
business  in  this  state. 

Penalty  for  persons  concerned  in  violation  of  this  act. 

Sec.  4.  Any  violation  of  either  or  all  of  the  provisions  of 
this  act  shall  be  and  is  hereby  declared  a  conspiracy  against 
trade,  and  any  person  who  may  become  engaged  in  any  such 
conspii'acy  or  take  part  therein,  or  aid  or  advise  in  its  com- 
mission, or  who  shall  as  principal,  manager,  director,  agent, 
servant  or  employee,  or  in  any  other  capacitj',  knowingly  carry 
out  any  of  the  stipulations,  puii:ioses,  prices,  rates,  or  furnish 
any  information  to  assist  in  carrying  out  such  purposes,  or 
orders  thereunder  or  in  pursuance  thereof,  shall  bo  punished 
by  a  fine  of  not  less  than  fifty  ($50)  dollars  nor  more  than  five 
thousand  ($5,000)  dollars,  or  be  imprisoned  not  less  than  six 
months  nor  more  than  one  year,  or  by  both  such  fine  and 
imprisonment.  Each  day's  violation  of  this  provision  shall  con- 
stitute a  separate  offense. 

Wliat  indictment  must  set  out. 

Sec.  5.  In  any  indictment,  information  or  complaint  for 
any  offense  named  in  this  act,  it  is  sufficient  to  state  the  pur- 
pose or  effects  of  the  trust  or  comliinatiou,  and  that  the  accused 
is  a  member  of,  acted  with  or  in  pursuance  of  it,  or  aided 
or  assisted  in  carrying  out  its  purposes,  without  giving  its 
name  or  description,  or  how,  when  and  where  it  was  created. 

Prosecutions,  what  to  prove — Bool<s  and  papers  must  be  pro- 
duced when  ordered. 
Sec.  6.  In  prosecutions  under  this  act,  it  shall  be  sufficient 
to  prove  that  a  trust  or  combination,  as  defined  herein,  exists, 
and  that  the  defendant  belonged  to  it,  or  acted  for  or  in  con- 
nection with  it,  without  proving  all  the  members  belonged  to 
it,  or  proving  or  producing  any  article  of  agreement,  or  any 
written  instrument  on  which  it  may  have  been  based  ;  or  that 
it  was  evidenced  by  any  written  instrument  at  all.  The  char- 
acter of  the  trust  or  comI)ination  alleged  may  be  established 
by  proof  of  its  general  reputation  as  such.  In  case  any  court 
of  record,  or  in  vacation  any  judge  of  said  court  in  which  is 
pending  any  civil,  criminal  or  other  action  or  proceeding 
brought  or  prosecuted  by  the  attorney  general  or  any  district 
attorney  for  the  violation  of  any  of  the  provisions  of  this  act 
or  in  any  action  or  [irudHMling  for  llie  Niolntioii  of  the  law  of 


{502  STATUTES   AT   LARGE. 

this  state,  against  conspiracy  or  combination  in  restraint  of 
trade  so  orders,  no  person  so  ordered  shall  be  excused  from 
attending,  testifying  or  producing  books,  papers,  schedules,  con- 
tracts, agreements  or  any  other  document  in  obedience  to  the 
subpoena  or  under  the  order  of  such  court  or  any  commissioner 
or  referee  appointed  by  said  court  to  take  testimony  or  any 
notary  public  or  other  person  or  officer  authorized  by  the  laws 
of  this  state  to  take  depositions  when  the  order  made  by  such 
court  or  judge  thereof  includes  a  witness  whose  deposition  is 
being  taken  before  such  notary  public  or  other  officer  on  the 
ground  or  for  the  reason  that  the  testimony  or  evidence  required 
of  him  may  tend  to  criminate  him  or  subject  him  to  any 
penalty  ;  but  no  individual  shall  be  prosecuted  or  subjected  to 
any  penalty  for  or  on  account  of  any  transaction,  matter 
or  thing  concerning  which  he  may  so  testify  or  produce  evidence, 
documentary  or  othenvise,  before  any  such  court,  person  or 
officer. 

Penalty,  after  notice  by  attorney  general. 

Sec.  7.  Each  and  every  firm,  person,  partnership,  corpora- 
tion, or  association  of  persons,  who  shall  in  any  manner  violate 
any  of  the  provisions  of  this  act,  shall  for  each  and  every  day 
that  such  violations  shall  be  committed  or  continued,  after  due 
notice  given  by  the  attorney  general  or  any  district  attorney, 
forfeit  and  pay  the  sum  of  fifty  (50)  dollars,  which  may  be 
recovered  in  the  name  of  the  people  of  the  State  of  California, 
in  any  county  where  the  offense  is  committed,  or  where  either 
of  the  offenders  resides  ;  and  it  shall  be  the  duty  of  the  attorney 
general,  or  the  district  attorney  of  any  county  on  the  order  of 
the  attorney  general,  to  prosecute  for  the  recovery  of  the  sam(\ 
When  the  action  is  prosecuted  by  the  attorney  general  against 
a  corporation  or  association  of  persons,  he  may  begin  the  action 
in  the  supreme  [superior]  court  of  the  county  in  which  defend- 
ant resides  or  does  business. 

Contracts  in  violation  of  act  void. 

Skc.  S.  That  any  contract  or  agreement  in  violation  of  the 
provisions  of  this  act,  shall  be  absolutely  void  and  shall  not  be 
enforceable  either  in  law  or  equity. 

Provisions  cumulative. 

Sec.  0.  Th;it  the  provisions  hereof  sliall  be  ho]i]  ciiuiuhilivo 
of  each  other  and  of  all  other  laws  in  any  way  affecting  them 
now  in  force  in  this  state. 


OOMRINATIOXS.  5n8 

Trust  certificates  not  lawful. 

Sec.  10.  It  shall  not  be  lawful  for  any  person,  partnership, 
association  or  corporation,  or  any  agent  thereof,  to  issue  or  to 
own  trust  certificates,  or  for  any  person,  partnership,  associa- 
tion or  corporation,  agent,  officer  or  employee,  or  the  directors 
or  stockholders  of  any  corporation,  to  enter  into  any  combina- 
tion, contract  or  agreement  with  any  person  or  persons,  corpo- 
ration, or  corporations,  or  with  any  stockholder  or  director 
thereof,  the  purpose  and  effect  of  which  combination,  contract 
or  agreement  shall  be  to  place  the  management  or  control  of 
such  combination  or  combinations,  or  tlie  manufactured  product 
thereof,  in  the  hands  of  any  trustee  or  trustees  with  the  intent 
to  limit  or  fix  the  price  or  lessen  the  production  and  sale  of  any 
article  of  commerce,  use  or  consumption,  or  to  prevent,  restrict 
or  diminish  the  manufacture  or  output  of  any  such  article,  and 
any  person,  partnership,  association  or  corporation  that  sliall 
enter  into  any  such  combination,  contract  or  agreement  for  the 
l)urpose  aforesaid  shall  be  deemed  guilty  of  a  misdemeanor,  and 
on  conviction  thereof  shall  be  punished  by  a  fine  not  less  than 
fifty  dollars,  nor  more  than  five  thousand  dollars. 

Persons  injured  in  business  by  trust  may  bring  suit. 

Sec.  11.  In  addition  to  the  criminal  and  civil  penalties 
herein  provided,  any  person  who  shall  be  injured  in  his  business 
or  property  by  any  other  person  or  corporation  or  association 
or  partnership,  by  reason  of  anything  forbidden  or  declared 
to  be  unlawful  by  this  act,  may  sue  therefor  in  any  court  having 
jurisdiction  thereof  in  the  county  where  the  defendant  resides 
or  is  found,  or  any  agent  resides  or  is  found,  or  where  service 
may  be  obtained,  without  respect  to  the  amount  in  controversy^ 
and  to  recover  twofold  the  damages  by  him  sustained,  and  the 
costs  of  suit.  Whenever  it  shall  appear  to  the  court  before 
which  any  proceedings  under  this  act  may  be  pending,  that  the 
ends  of  justice  require  that  other  parties  shall  be  brought  before 
the  court,  the  court  may  cause  them  to  be  made  "parties  defend- 
ant and  summoned  whether  they  reside  in  the  county  where  such 
action  is  pending,  or  not. 

"Person"  defined. 

Sec.  12.  The  word  "person"  or  "persons"  whenever  used 
in  this  act.  shall  be  deemed  to  include  corporations,  partner- 
ships and  associations  existing  under  or  authorized  by  the  laws 
of  this  state  or  any  other  state,  or  an\-  foreign  country. 

24— CL 


;».l4  STATUTES    AT    LARGE. 

Labor  not  a  commodity. 

Sec.  13.  Labor  whether  skilled  or  unskilled  is  not  a  com- 
modity within  the  meaning  of  this  act.  [New  section;  added 
March  20,  1909 ;  in  effect  immediately.] 

37  Cal.  Dec.  2G1. 

VII  Cal.  App.  Dec.  733. 


CONSPIRACY. 

See  Comhinaiions. 


CO-OPERATIVE  ASSOCIATIONS. 

An  act  to  define  co-operative  business  corporations,  and  to  pro- 
vide for  tlie  organization  and  government  thereof. 

Approved  April  1,  1878;  stats.  1877-8.  p.  883.  The  portion  of 
the  statute  declarhig  that  the  by-laws  may  provide  for  the 
number  of  votes  to  which  each  -  shareholder  shall  be  entitled  is 
probably  unconstitutional  as  being  special  legislation.  (See 
Krause  vs.  Durbrow,  127  Cal.  681.)  The  remaining  portion  is 
s-uperseded  by  Civ.  C.  §  C53a,  as  adopted  in  1905. 


An    act    to    provide    for    incorporation,    operation,    and    manage- 
ment   of    co-operative    associations. 

Approved  March  27,  1895;  stats.  1895,  p.  221.  Codified  by  the 
legislature  of  1905  and  therefore  superseded  by  §§  6536  to  653Z  of 
the  Civil  Code. 


CREI^rATOBIES. 


CREMATORIES. 

See,  also,  Animals;  Cemeteries. 

An  net  to  prevent  the  propagation  of  disease  through  contami- 
nation of  the  atmosphere  by  gases  or  fumes  arising  from 
crematories  for  the  disposition  of  garbage,  ashes,  offal,  and 
other   refuse   matter,   and  to    prescribe   penalties. 

Approved  April  17,  1909  ;  stats.  1909,  p.  978. 

'J'hr  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Operation  of  garbage  crematories. 

Section  1.  No  person,  firm,  company  or  corporation  shall 
operate  within  any  city,  city  and  county  or  town  of  this  state 
any  crematory  for  the  destruction  by  fire  heat  of  garbage,  ashes, 
oifal,  or  other  refuse  matter,  except  as  hereinafter  provided  for. 

Contamination  of  atmosphere. 

Sec.  2.  No  such  crematory  shall  be  operated  in  this  state 
except  in  such  a  manner  as  will  prevent  the  propagation  of 
disease  through  contamination  of  the  atmosphere  of  any  city, 
city  and  county  or  town  liy  the  gases  or  fumes  arising  from  the 
fires  or  ovens  of  any  such  crematory  operated  for  the  destruction 
by  fire  heat  of  garbage,  ashes,  offal,  and  other  refuse  matter. 

Violation  a  misdemeanor. 

Sec.  3.  Every  svich  person,  firm,  company  or  eoiporatiou,  or 
oflicer,  agent,  or  employee  of  such  corporation,  which  burns  by 
fire  heat  or  destroys  by  cremation  any  such  garbage,  ashes,  offal, 
and  other  refuse  matter,  in  violation  of  the  provisions  of  this 
act.  shall  be  guilty  of  a  misdemeanor. 


r>56  STATUTES    AT    LARtlE. 

DAY  OF  REST. 

See  "Hours  of  Labor." 


DEMURRAGE. 


See  "Railroad.'!. 


EMPLOYMENT    AND   EMPLOYMENT   AGENTS. 

See,  also,  Pen.  C.  §  670. 

An  act  to  prevent  misrepresentations  of  conditions  of  employ- 
ment, making  It  a  misdemeanor  to  misrepresent  the  same 
and    providing    penalties   therefor. 

Approved  March  20,   1903;  .stats.   1903,  p.  269. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

False  representations  of  conditions  of  employment. 

Section  1.  It  shall  l)e  unlawful  for  any  person,  partnership, 
company,  corporation,  association,  or  organization  of  any  kind, 
doing  business  in  this  state  directly  or  through  any  agent  or 
attorney,  to  induce,  influence,  persuade,  or  engage  any  person  to 
change  from  one  place  to  another  in  this  state  or  to  change  from 
any  place  in  any  state,  territory,  or  country  to  any  place  in  this 
state,  to  work  in  any  branch  of  labor,  through  or  by  means  of 
knowingly  false  representations,  whether  spoken,  written,  or 
ad^■ertised  in  printed  form,  concerning  the  kind  or  character  of 
such  work,  the  compensation  therefor,  the  sanitary  conditions 
relating  to  or  surrounding  it,  or  the  existence  or  non-existence  of 
any  strike,  lockout,  or  other  labor  dispute  affecting  it  and  pend- 
ing between  the  proposed  employer  or  employers  and  the  persons 
then  or  last  theretofore  engaged  in  the  performance  of  the  labor 
for  which  the  employee  is  sought. 

Penalty  for  violation. 

Sec.  2.  Any  violation  of  section  one  or  section  two  hereof 
shall  be  deemed  a  misdemeanor,  and  shall  be  punished  by  a  fine 


EMPLOYMENT    AND    EMPLOYMENT   AGENTS.  557 

of  not  exceeding  two  thousand  dollars  or  by  imprisonment  for  not 
more  than  one  year,  or  by  both  such  fine  and  imprisonment. 

Time  act  sliall  take  effect. 

Sec.  3.     This  act  shall  take  effect  on  the  date  of  its  passage. 


An  act  defining  the  duties  and  liabilities  of  employment  agents, 
making  the  violation  thereof  a  misdemeanor  and  fixing 
penalties   therefor. 

Approved  February  12,   1903;   stats.   1903,  p.    14. 
Amended  March  18,  1905  ;  stats.  1905,  p.  143. 
Amended  March  3,  1909  ;  stats.  1909,  p.  137. 
Amended  March  6,  1909  ;  stats.  1909,  p.  149. 

Ed.  Note. — The  provisions  of  section  4  of  this  act  held  uncon- 
stitutional iEx  parte  Dickey,  144  Cal.  234),  but  section  4 
repealed  in   1905. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Employment  agent  defined. 

Section  1.  Any  person,  firm,  corporation,  or  association 
pursuing  for  profit  the  business  of  furnishing,  directly  or  indi- 
rectly, to  persons  seeking  employment,  information  enabling,  or 
tending  to  enable,  such  persons  to  secure  such  employment,  or 
registering  for  any  fee,  charge,  or  commission  the  names  of  any 
person  seeking  employment  as  aforesaid,  shall  be  deemed  to  be 
an  employment  agent  within  the  meaning  of  this  act. 

Time  of  taking  fees. 

Sec.  2.  It  shall  be  unlawful  for  an  employment  agent  in  the 
State  of  California  to  receive,  directly  or  indirectly,  any  money 
or  other  valuable  consideration  from  any  person  seeking  employ- 
ment, for  any  information  or  assistance  furnished  or  to  be 
furnished  by  said  agent  to  such  person,  enabling  or  tending  to 
enable  said  person  to  secure  such  employment,  prior  to  the  time 
at  which  said  information  or  assistance  is  actually  thus  furnished. 

Misrepresentation    by    agents — Return    of    fees    paid    and    certain 
expenses. 
Sec.  ?>.     It  shall  be  unlawful  for  any  employment  agent  in  the 
State  of  California  to  induce,  infltience,  persuad<\  or  engage  any 


558  STATUTES    AT    LARGE. 

person  to  change  from  one  place  to  another  in  this  state,  or  to 
change  from  any  place  in  any  state,  territory,  or  country,  to  any 
place  in  this  state  to  work  in  any  branch  of  labor,  through  or  by 
means  of  any  representations  whatsoever,  whether  spoken, 
written,  or  advertised  in  printed  form,  unless  such  employment 
agent  shall  have  assured  himself  beyond  a  reasonable  doubt  that 
such  representations  are  true  and  cover  all  the  material  facts 
affecting  the  employment  in  question.  Whenever  any  such 
representation,  whereby  any  person  is  induced,  influenced,  per- 
suaded, or  engaged  to  change  from  one  place  to  another  in  this 
state,  or  from  any  place  in  any  state,  territory,  or  country,  to 
any  place  in  this  state  to  work  in  any  branch  of  labor,  shall 
prove  to  be  in  any  material  degree  at  variance  with,  or  short  of 
the  truth,  the  employment  agent  responsible  for  such  representa- 
tions shall  immediately  return  to  any  person  who  shall  have 
been  influenced,  by  such  representations,  any  and  all  fees  paid 
by  such  person  to  said  employment  agent  on  the  strength  of  such 
representations,  together  with  an  amount  of  money  sufficient  to 
cover  all  necessary  expenses  incurred  by  such  person  influenced 
by  such  representations  in  going  to  and  returning  from,  any 
place  he  shall  have  been  influenced  by  such  representations  to 
visit  in  the  hope  of  employment.  [Section  3  amended  March  18. 
1905.] 

Section  2  of  the  act  approved  Marcli  IS,  1905,  repeals  the 
following  section  : 

Amount  of  fee  to  be  charged.     [Repealed.] 

Sec.  4.  It  shall  be  unlawful  for  an  employment  agent  in  the 
State  of  California  to  receive,  directly  or  indirectly,  for  registra- 
tion made  or  for  information  or  assistance  such  as  is  described 
in  section  two  hereof,  any  money  or  other  consideration  which  is 
in  value  in  excess  of  ten  per  cent  of  the  amount  earned,  or  pros- 
pectively to  be  earned  by  the  person  for  whom  said  registration 
is  made  or  to  whom  such  information  is  furnished,  through  the 
medium  of  the  employment  regarding  which  such  registration, 
information  or  assistance  is  given,  during  the  first  month  of  such 
employment ;  provided,  that  said  value  shall  not  be  in  excess  of 
ten  per  cent  of  the  amount  actually  prospectively  to  be  earned 
in  such  employment  when  it  is  mutually  understood  by  the  agent 
and  person  in  this  section  mentioned,  at  the  time  when  said 
information  or  assistance  is  furnished,  that  said  employment  is 
to  be  for  a  period  of  less  than  one  month.  |  Section  4  repealed 
March  18,  1905.] 


EMPLOYMENT    AND    EMPLOYMENT    AGENTS.  55J) 

Duty  of  tax  collector. 

Sec.  5.  The  tax  collector  or  license  collector  of  each  respect- 
ive city,  county  or  city  and  county  of  the  State  of  Californiii 
shall  furnish  quarterly,  to  the  commissioner  of  the  bureau  of 
labor  statistics  of  the  State  of  California  the  name  and  address 
of  each  employment  agent  doing  business  in  said  city,  county  or 
city  and  county  ;  provided,  that  where  the  license  is  not  a  county 
license,  but  is  collected  by  a  municipal  government,  then  the 
municipal  collector  of  said  tax  shall  furnish  the  names  and 
addresses. 

Record  of  applications. 

Sec.  6.  Each  employment  agent  in  the  State  of  Califoruiu 
shall  keep  a  written  record,  which  shall  show  the  name  of  each 
person  making  application  to  said  agent  for  registration,  infor- 
mation or  assistance,  such  as  is  described  in  section  two  hereof : 
the  name  of  each  such  person  to  whom  such  registration  or 
information  is  furnished ;  and  the  amount  recei\ed  in  each  such 
case  therefor ;  the  name  of  each  person  who,  having  received  and 
paid  for,  as  herein  contemplated,  registration,  information  or 
assistance  such  as  is  described  in  section  two  hereof,  fails  to 
secure  the  employment  regarding  which  such  registration,  infor- 
mation or  assistance  is  furnished,  together  with  the  reason  why 
said  employment  was  not  by  said  person  secured,  and  the  name 
of  each  person  to  whom  return  is  made,  in  accordance  with  tlic 
provisions  of  section  three  hereof,  of  any  money  or  other  con- 
sideration such  as  is  in  said  section  named,  together  with  the 
amount  of  said  money,  or  the  value  of  said  consideration,  thus 
returned. 

Right  of  bureau  of  labor  to  inspect  record. 

Sec.  7.  Each  employment  ageut  in  the  State  of  California 
shall  permit  the  commissioner  of  tlic  liureau  of  labor  statistics 
of  said  state,  by  himself,  or  by  his  dei)uties  or  agents,  to  have 
at  all  times  access  to,  and  to  inspect,  the  record  in  section  six 
hereof  named,  and  upon  demand  in  writing  therefor  by  said  com- 
missioner, shall  furnish  to  such  commissioner  a  true  copy  of  said 
record,  or  of  such  portion  thereof  as  said  demand  in  writing 
shall  require  a  copy  of  to  be  thus  furnished.  The  commissioner, 
his  deputies  and  agents  shall  have  all  powers  and  authority  of 
sheriffs  to  make  arrests  for  violations  of  the  provisions  of  this 
act.  [Section  7  amended  March  Q,  1909;  stats  1909,  p.  149;  in 
effect  in  sixty  days.] 


.">(>0  STATUTES    AT   LARGE. 

Penalty — Disposition  of  fines. 

Sec.  8.  Any  employment  agent  or  other  person  violating  or 
omitting  to  comply  with,  any  of  the  provisions  of  this  act,  shall 
he  deemed  guilty  of  a  misdemeanor,  and  upon  conviction  shall 
be  punished  by  a  fine  not  exceeding  five  hundred  (500)  dollars, 
or  by  imprisonment  not  exceeding  six  (6)  months,  or  by  both 
such  fine  and  imprisonment  in  the  discretion  of  the  court.  AH 
fines  imposed  and  collected  under  the  provisions  of  this  act  shall 
be  paid  into  the  state  treasury  and  credited  to  the  contingent 
fund  of  the  bureau  of  labor  statistics.  [Section  8  amended 
March  3,  1909;  stats.  1909,  p.  137;  in  effect  in  sixty  days.] 

Repeal  of  conflicting  acts. 

Sec.  9.  All  acts  and  parts  of  acts  inconsistent  with  the  pro- 
visions of  this  act  are  hereby  repealed. 

Time  act  shall  take  effect. 

Sec.  10.  This  act  shnll  lake  ofFect  from  and  after  the  date  of 
its  passage. 


An  act  to  regulate  and  license  the  conducting  and  operating 
of  employment  agencies  and  to  provide  a  revenue  therefrom, 
for  the  enforcement  of  the  provisions  of  this  act  and  other 
acts  relating  to  employment  agents  and  employment  agencies. 

Approved  March  G.  litOO  ;  stats.   1909,  p.  191. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assenihlu.  do  enact  as  follows: 

Employment  agency  defined. 

Section  1.  Any  business,  pursued  for  profit,  for  furnishing 
directly  or  indirectly,  to  persons  seeking  employment,  informa- 
tion enabling,  or  tending  to  enable,  such  persons  to  secure  such 
employment,  or  registering  for  any  fee,  charge,  or  commission, 
the  names  of  any  persons  seeking  employment  as  aforesaid,  shall 
bo  deemed  to  lie  an  employment  agency  within  the  meaning  of 
this  act. 

License  required. 

Sec.  2.  Every  person,  firm,  corporation  or  association  who 
conducts  or  operates  an  employment  agency  in  the  State  of 
California,  without  fii-st  procuring  a  license  therefor,  as  pro- 
vided in  this  act,  is  guilty  of  a  misdemeanor. 


ElMTLOYMEMT    AND    EMPLOYMENT    AGENTS.  Ttdl 

Issuance  of  license. 

Sec.  3.  Licenses  grantiug  tlie  privilege  to  couduct  or  operate 
employment  agencies  shall  be  issued  and  delivered  upon  applica- 
fion,  by  the  commissioner  of  the  bureau  of  labor  statistics,  which 
license  shall  contain  the  name  of  the  person,  firm,  corporation  or 
association,  seeking  to  conduct  or  operate  an  employment  agency, 
;md  the  exact  location  of  the  employment  agency. 

Fees  for  license. 

Sec.  4.  The  licenses  herein  provided  for  shall  be  issued  as 
follows :  to  any  person,  firm,  corporation  or  association,  con- 
ducting or  operating,  or  seeking  to  conduct  or  operate,  an  em- 
ployment agency — 

1.  In  cities  of  the  first,  first  and  one  half  and  second  classes 
upon  payment  of  fifty  dollars. 

2.  In  cities  of  the  third  and  fourth  classes,  upon  payment  of 
twenty-five  dollars. 

3.  In  all  other  cities  and  towns,  upon  i).iynicut  of  six  dollars. 

Personal  names  of  agents  must  be  given. 

Sec.  5.  Every  person,  firm,  corporation  or  association  apply- 
ing for  and  procuring  a  license  as  herein  provided,  shall  give  to 
the  commissioner  of  the  bureau  of  labor  statistics,  the  name  and 
resident  address  of  such  person,  or  the  names  and  resident 
addresses  of  the  partners  of  such  firms,  or  the  names  and  resi- 
dent addresses  of  the  officers  and  directors  of  such  corporations 
or  associations,  and  the  city  or  town,  street  and  number  where 
the  employment  agency  is  conducted  or  operated,  or  sought  to 
he  conducted  and  operated. 

Term  of  license. 

Sec.  0.  All  licenses  issued  as  herein  provided  shall  be  valid, 
and  shall  authorize  the  person,  firm,  corporation  or  association 
to  whom  issued,  to  conduct  or  operate  an  employment  agency  on 
and  from  the  date  of  issuing  to  the  thirty-first  day  of  March  fol- 
lowing, but  no  license  .shall  continue  in  force  for  a  longer  period 
than  one  year. 

Disposition  of  fees  and  fines. 

Sec.  7.  All  moneys  collected  for  licenses  as  provided  herein, 
and  all  fines  collected  for  violation  of  the  provisions  hereof,  shall 
be  paid  into  the  state  treasury  and  credited  to  the  contingent 
fund  of  the  bureau  of  labor  statistics. 


r)G2  STATtlTKS    AT    J.ARGE. 

\ 

Separate  licenses  required  for  branch  agencies. 

Sec.  8.  Every  persou,  firm,  corporation  or  association  con- 
ducting or  operating,  or  seeking  to  conduct  or  operate  branch 
employment  agencies  in  the  same  or  ditferent  localities  must 
procure  a  separate  license  for  such  branch  employment  agencies ; 
and  no  license  issued  as  herein  provided  shall  be  transferable 
or  used  by  any  other  persou,  firm,  corporation  or  associiitiou  than 
the  one  to  whom  it  was  issued,  or  used  in  a  different  location 
than  the  one  for  which  it  wns  issued,  without  the  wi-itten  con- 
sent of  the  commissioner  of  the  bureau  of  labor  statistics. 

Licenses  must  be  posted. 

Sec.  9.  All  licenses  issued  as  herein  provided,  shall  be  posted 
in  a  conspicuous  place,  and  any  person,  firm,  corporation  or 
association  having  such  license  and  who  refuses  to  exhibit  the 
same  upon  demand  of  any  officer  or  agent  of  the  bureau  of  labor 
statistics,  or  any  peace  officer  of  the  state,  shall  be  guilty  of  a 
misdemeanor ;  and  any  person,  firm,  corporation  or  association 
lawfully  having  such  licenses,  and  who  transfers  or  disposes  of 
I  lie  same  to  another  person,  firm.  cdt]. oration  or  association  to 
ill'  used  as  an  employment  agency  license,  shall  forfeit  the  same. 

Penal  clause. 

Sec.  10.  Every  person,  firm,  corporation  or  association  vio- 
lating any  of  the  provisions  of  this  act,  shall  upon  conviction 
thereof,  be  guilty  of  a  misdemeanor. 

Revocation  of  license. 

Sec.  11.  Upon  conviction,  of  any  person,  firm,  corporation 
or  association  for  the  violation  of  any  of  the  provisions  of  this 
act,  or  an  act  entitled  "An  act  defining  the  duties  and  liabilities 
of  employment  agents,  making  the  violation  thereof  a  misde- 
meanor, and  fixing  the  penalties  therefor,"  approved  February 
12,  K»0.3,  the  commissioner  of  the  bureau  of  labor  statistics  shall 
have  the  right  to  revoke  all  licenses  issued  to  such  person,  firm, 
corporation  or  association,  enabling  them  to  conduct  or  operate 
an  employment  agency. 

Municipal  taxes. 

Sec.  12.  Nothing  in  this  act  shall  be  construed  to  prevent 
the  collection  of  any  tax  or  license  by  any  county  or  municipal 
authority. 


KMPLOVMENT    AND    EMPLOYMENT   AGENTS.  563 

Repeal  of  conflicting  acts. 

Sec.  13.     All  acts  or  parts  of  acts  in  conflict  with  this  act 
are  hereby  repealed. 

Time  act  shall  take  effect. 

Sec.  14.     This  act  shall   take  effect  aud  be  in   force  on  and 
after  April  first,  1909. 


EMIGRATION. 

An  act  to   promote  emigration   from   the   State  of  California. 

Approved  March  26.  1880  ;  stats.  1880,  p.  15. 

The  people  of  the  State  of  CaUforniu,  represented  in   senate  and 

assembly,  do  enact  as  follows: 

Passage  tickets  to  foreign  ports  not  to  be  withheld  or  refused — 
Penalty  for  violation. 
Section  1.  It  shall  be  unlawful  for  the  owners,  officers, 
a.nents,  or  employees  of  any  steamship  company,  sailing  vessel, 
or  railroad  company,  or  firm  or  corporation,  that  may  be  engaged 
in  this  state  in  the  transportation  of  passengers  to  and  from 
any  foreign  port,  to  withhold  or  refuse  any  person  or  persons  the 
right  to  purchase  a  passage  ticket  or  tickets  to  any  foreign 
country  for  the  reason  that  he  or  they  have  not  presented  a 
(certificate,  card,  or  other  document  whatsoever  showing  that 
such  person  has  paid  in  full,  or  in  part,  any  or  all  dues,  debts, 
or  demands,  or  otherwise,  or  any  sum  whatsoever,  to  any  society, 
company,  corporation,  association,  or  individual,  or  firm ;  and 
any  person  or  corporation  who  shall  violate  the  provisions  of 
this  section,  or  in  pursuance  of  any  agreement,  oral  or  written, 
refuse  to  sell  a  passage  ticket  to  any  person  to  any  foreign 
country,  shall  be  guilty  of  a  misdemeanor,  and  upon  conviction, 
shall  be  punished  by  a  fine  of  not  less  than  one  hundred  nor 
more  than  five  hundred  dollars  ;  provided,  that  nothing  in  this 
section  shall  be  construed  in  any  manner  to  apply  to  any  pass- 
port or  other  document  required  by  law  to  be  presented,  having 
the  signature  or  seal  of  any  foreign  consul  resident  within  this 
state. 

Time  act  shall  take  effect. 

Sec.  2.     This  act  shall  take  effect  on  and  after  its  passage. 


>64  STATUTES    AT    LARGE. 


EXECUTORS. 

An  act  authorizing  certain  corporations  to  act  as  executor  and 
In  other  capacities,  and  to  provide  tor  and  regulate  the 
administration  of  trusts  by  such  cor-porations. 

Approved  April  6,  1891;  stats.  ISi)!,  p.  490. 
Amended  April  1,  1897  ;  stats.  1897,  p.  424. 
Amended  March  20,  1903  ;  stats.  1903,  p.  244. 
Amended  March  18,  1905  ;  stats.  1905,  p.  232. 
Amended  March  18,  1907  ;  stats.  1907,  p.  562. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

What  corporations   may  act  as  executor. 

Section  1.  Any  corporation  which  has  or  shall  be  incorpo- 
rated under  the  general  incorporation  laws  of  this  state,  author- 
ized by  its  articles  of  incorporation  to  act  as  executor,  adminis- 
trator, guardian,  assignee,  receiver,  depositary  or  trustee,  and 
having  a  paid-up  capital  of  not  less  than  two  hundred  and  fifty 
thousand  dollars,  of  which  one  hundred  thousand  dollars  shall 
have  been  actually  paid  in,  in  cash,  may  be  appointed  to  act  iu 
such  capacity  in  like  manner  as  individuals.  In  all  cases  iu 
which  it  is  required  that  an  executor,  administrator,  guardian, 
assignee,  receiver,  depositary,  or  trustee,  shall  qualify  by  taking 
and  subscribing  an  oath,  or  in  which  an  affidavit  is  required,  it 
shall  be  a  sufficient  qualification  by  such  corporation  if  such 
oath  shall  be  taken  and  subscribed  or  such  affidavit  made  by  the 
president  or  secretary  or  manager  or  trust  officer  thereof,  and 
such  officer  shall  be  liable  for  the  failure  of  such  corporation  to 
perform  any  of  the  duties  required  by  law  to  be  performed  by 
individuals  acting  iu  like  capacity  and  subject  to  like  penalties ; 
and  such  corporation  shall  be  liable  for  such  failure  to  the  full 
amount  of  its  capital  stock ;  provided,  any  such  appointment 
as  guardian  shall  apply  to  the  estate  only,  and  not  to  the  per- 
son. Such  corporation  shall  be  entitled  to  and  shall  be  allowed 
proper  compensation  for  all  the  services  performed  by  them 
under  the  foregoing  provisions  of  this  act ;  but  such  compensa- 
tion shall  not  exceed  that  allowed  to  natural  persons  for  like 
services.     [Section  1  amended  March  IS,  1907.] 

See,  also,  §  290a  Civ.  C. 


EXECUTORS.  565 

Deposits  made  with  corporation. 

Sec.  2.  Any  court,  having  appointed  and  having  jurisdiction 
of  any  executor,  administrator,  guardian,  assignee,  receiver, 
depositary,  or  trustee,  upon  the  application  of  such  officer  or 
trustee,  or  upon  the  application  of  any  person  having  an  interest 
in  the  estate  administered  by  such  officer  or  trustee,  after  notice 
to  the  other  parties  in  interest  as  the  court  may  direct,  and  after 
a  hearing,  upon  such  application,  may  order  such  officer  or 
trustee  to  deposit  any  moneys  then  in  his  hands,  or  which  may 
come  into  his  hands  thereafter,  and  until  the  further  order  of 
said  court,  with  any  such  corporation;  and  upon  deposit  of  such 
money,  and  its  receipt  and  acceptance  by  such  corporation,  the 
said  officer  or  trustee  shall  be  discharged  from  further  care  or 
responsibility  therefor.  Such  deposits  shall  be  paid  out  only 
upon  the  orders  of  said  court. 

Public  administrator  may  make  deposits. 

Sec.  3.  And  it  shall  be  lawful  for  any  public  administrator 
to  deposit  with  any  such  corporation  doing  business  in  the 
county,  or  city  and  county,  in  which  he  is  acting  as  such  admin- 
istrator, any  and  all  moneys  of  any  estate  upon  which  he  is 
administering,  not  required  for  the  current  expenses  of  the 
administration.  And  such  deposits  shall  relieve  the  public 
administrator  from  depositing  with  the  county  treasurer  the 
moneys  so  deposited  with  such  corporation.  Moneys  deposited 
by  a  public  administrator  may  be  drawn,  upon  the  order  of  such 
administrator,  countersigned  by  a  judge  of  a  superior  court, 
when  required  for  the  purpose  of  administration,  or  otherwise. 

Court  may  order  deposit  and  reduce  bonds. 

Sec.  4.  Whenever,  in  the  judgment  of  any  court  having 
jurisdiction  of  any  estate  in  process  of  administration  by  any 
executor,  administrator,  guardian,  assignee,  receiver,  depositary, 
or  trustee,  the  bond  required  by  law  of  such  officer  shall  seem 
burdensome  or  excessive,  upon  application  of  such  officer  or 
trustee,  and  after  such  no'^ice  to  the  parties  in  interest  as  the 
court  shall  direct,  and  after  a  hearing  on  such  application,  the 
said  court  may  order  the  said  officer  or  trustee  to  deposit  with 
any  such  corporation,  for  safe-keeping,  such  portion  or  all  of 
the  personal  assets  of  said  estate  as  it  shall  deem  proper ;  and 
thereupon  said  court  shall,  by  an  order  of  record,  reduce  the 
bond  to  be  given  or  theretofore  given  by  such  officer  or  trustee, 


500  STATUTES    AT   LARGE. 

SO  as  to  cover  oiili  (he  esUile  leuiaiuing  iu  the  hands  of  said 
oflBcer  or  trustee ;  and  the  property  as  dejjosited  shall  thereupon 
be  held  by  said  corporation,  under  the  orders  and  directions 
of  said  court.  Any  court  having  jurisdiction  of  an  estate  being 
administered  by  a  public  administrator,  may  direct  such  public 
administrator  to  deposit  all  or  any  part  of  the  moneys  of  the 
estate  not  required  for  the  current  expenses  of  the  administra- 
tion, with  any  such  corporation  doing  business  in  the  "county,  or 
city  and  county,  where  such  i)uhlic  administrator  is  acting. 

Responsible  for  investments. 

Sec.  5.  Such  corporation  shall  not  be  required  to  give  any 
bond  or  security  in  case  of  any  appointment  hereinbefore  pro- 
vided for,  except  as  hereinafter  provided,  but  shall  be  responsible 
for  all  investments  which  shall  be  made  by  it  of  the  funds 
which  may  be  intrusted  to  it  for  investment  by  such  court,  and 
shall  be  further  liable  as  natural  persons  in  like  positions  now 
are,  and  as  hereinafter  provided.  Tlie  amount  of  money  which 
any  such  corporation  shall  have  on  deposit  at  any  time  shall 
not  exceed  ten  times  the  amount  of  its  paid-up  capital  and 
surplus,  and  its  outstanding  loans  shall  not  at  any  time  exceed 
said  amount. 

Interest. 

Sec.  6.  Such  corjioratious  shall  pay  interest  upon  all  moneys 
held  by  them  by  virtue  of  this  act,  at  such  rate  as  may  be 
agreed  upon  at  the  time  of  its  acceptance  of  any  such  appoint- 
ment, or  as  shall  be  provided  by  the  order  of  the  court. 

Deposit  of  bonds  with  state  treasurer. 

Sec.  7.  Each  corporation,  before  accepting  any  such  appoint- 
ment, or  deposit,  shall  deposit  with  the  treasurer  of  state,  for 
the  benefit  of  the  creditors  of  said  corporation,  the  sum  of  one 
hundred  thousand  dollars  (.$100,000.00),  in  bonds  of  the  United 
States,  or  municipal  bonds  of  this  state,  or  of  any  county,  or 
city,  or  school  district  thereof,  or  in  mortgages  on  improved 
and  productive  real  estate  in  this  state,  being  first  liens  thereon, 
and  the  real  estate  being  worth  at  least  twice  the  amount 
loaned  thereon.  The  bonds  and  securities  so  deposited  may  be 
exchanged  from  time  to  time  for  other  securities,  receivable  as 
aforesaid.  Said  bonds  of  the  United  States,  or  municipal  bonds 
of  this  state,  or  of  auy  county,  city,  or  school  district  thereof, 
to  be   registered  in   the  name  of  said   treasurer,  officially,   and 


lOXECUTOU.S.  5(j7 

all  said  securities  to  be  subject  In  sale  uiul  transfer,  aud  to  the 
disposal  of  the  proceeds  by  said  treasurer,  only  on  the  order 
of  a  court  of  competent  jurisdiction,  and  as  hereinafter  pro- 
vided.     [Section  7  amended  April  1,  1897.] 

May  mortgage  real  estate. 

Sec.  S.  Any  such  corporation,  haviuj;  a  paid-up  capital  in 
excess  of  two  hundred  and  fifty  thousand  dollars,  may  be  per- 
mitted by  the  board  of  bank  commissioners  to  mortgage  any 
improved  and  productive  real  estate  owned  by  it,  in  excess  of 
said  amount,  to  tlie  treasurer  of  state,  for  such  sum  as  the 
said  board  may  determine  ;  and  such  mortgage  may  be  deposited 
with  said  treasurer,  and  when  so  deposited  it  shall  be  included 
in  the  amount  of  securities  hereinabove  required  to  be  deposited 
with  said  treasurer  for  the  l^enefit  of  the  creditors  of  said  cor- 
poration. 

Deposit,  increase  and  decrease  of. 

Sec.  9.  So  long  as  the  corporation  so  deiiositing  shall  con- 
tinue solvent,  such  corporation  shall  be  permitted  to  receive 
from  said  treasurer  the  interest  or  dividends  on  said  deposit; 
provided,  hoivever,  that  when  it  shall  appear  to  the  board  of 
bank  commissioners,  from  the  semi-annual  report  of  any  such 
corporation,  that  the  value  of  the  personal  property  anfl  cash 
held  and  possessed  by  such  corporation,  by  virtue  of  the  pro- 
visions of  this  act  and  any  amendment  thereof,  exceeds  ten 
times  the  amount  of  the  deposit  aforesaid,  said  board  shall 
require  said  corporation  to  forthwith  increase  its  said  deposit 
to  the  sum  of  five  hundred  thousand  dollars  in  such  securities. 
And  whenever  it  shall  appear  to  said  board  that  the  amount  of 
personal  property  and  cash  so  held  by  any  such  corporation  has 
been  reduced  below  ten  times  the  value  of  its  original  deposit 
above  provided  for,  and  said  corporation  is  not  in  any  default 
in  its  duties  and  obligations  hereunder,  they  shall  allow  such 
corporation  to  reduce  its  said  deposit  to  the  sum  of  two  hun- 
dred thousand  dollars,  by  the  withdrawal  of  such  additional 
deposit  until  such  time  as  an  increase  in  its  holdings  shall  again 
require  an  additional  deposit,  as  hereinbefore  provided. 

Abstracts  of  title. 

Seo.  10.  When  any  part  of  such  deposit  is  made  in  bonds 
and  mortgages,  it  shall  be  accompanied  by  full  abstracts  of  titles 
and  .searches,  and  shall  be  examined  and  approved  by  or  under 


o6S  STATUTES    AT    LARGE. 

(he  directiou  of  the  said  board.  The  fees  for  au  examiuatiou 
of  title  by  counsel,  to  be  paid  by  the  corporation  making  the 
tleposit,  shall  not  exceed  twenty  dollars  for  each  mortgage,  and 
the  fee  for  each  appraiser,  not  exceeding  two,  besides  expenses, 
shall  be  five  dollars  for  each  mortgage. 

Certificate  of  authority. 

Sec.  Jl.  It  shall  not  be  lawful  for  any  such  corporation  to 
accept  any  trust  or  deposit,  as  hereinbefore  provided,  after  the 
passage  of  this  act,  without  first  procuring  from  the  board  of 
bank  commissioners  a  certificate  of  authority,  stating  that  such 
corporation  has  complied  with  the  requirements  of  this  act  in 
respect  to  such  deposit. 

Semi-annual  statement. 

Sec.  12.  Such  corporation  >;hall  file  with  the  said  board  of 
bank  commissioners,  during  the  mouths  of  January  and  July  of 
x;ach  year,  a  statement,  under  oath,  of  the  condition  of  such 
corporation  at  the  close  of  business  on  the  thirty-first  day  of 
December  and  the  thirtieth  day  of  June,  respectively,  next 
preceding,  showing  its  financial  condition.  Also,  a  list  and 
brief  description  of  the  trusts  held  by  such  corporation,  the 
source  of  the  appointment  thereto,  and  the  amount  of  real  and 
personal  estate  held  by  such  corporation  by  virtue  thereof, 
except  that  mere  mortgage  trusts,  wherein  no  action  has  been 
taken  by  such  corporation,  shall  not  be  included  in  such  state- 
ment. The  said  statement  shall  also  be  in  such  form,  and  con- 
tain such  reports,  returns,  and  information,  as  to  the  affairs, 
business,  condition,  and  resources  of  the  corporation,  as  the 
said  board  may  from  time  to  time  prescribe  and  require. 

Verification  of  statement. 

Sec.  3  3.  Such  statement  shall  be  verified  by  the  affidavit  of 
one  of  the  managing  officers  and  two  of  the  directors  or  trustees 
of  such  corporation,  who  shall  also  state  in  such  affidavit  that 
they  have  examined  the  assets  and  books  of  such  corporation  for 
the  purpose  of  making  such  statement.  Any  false  swearing  in 
regard  to  such  statement  shall  be  deemed  perjury,  and  shall  be 
subject  to  the  punishment  prescribed  by  law  for  such  offense. 

Duty  of  bank  commissioners. 

Sec.  14.  The  said  board  of  bank  commissioners  are  hereby 
authorized  and  empowered  to  address  any  inquiries  to  any  such 


EXECUTORS.  569 

corporation  or  the  officers  thereof,  in  rehitiou  to  its  doings  and 
conditions,  or  any  other  matter  connected  with  its  affairs ;  and  it 
shall  be  the  duty  of  any  such  corporation  or  person  so  addressed 
to  promptly  reply,  in  \Yritiug,  to  such  inquiries ;  and  they  may 
also  require  reports  from  any  such  corporation  at  any  time  they 
may  deem  desirable.  It  shall  be  the  duty  of  one  or  more  of  the 
bank  commissioners,  as  designated  by  the  commissioners,  annu- 
ally, or  as  often  as  in  their  judgment  they  may  deem  it  necessary, 
without  previous  notice,  to  visit  and  to  make  personal  examina- 
tion of  the  solvency  of  any  such  corporation,  its  ability  to  fulfill 
all  its  obligations,  and  report  its  condition  to  the  attorney  general 
as  soon  as  may  be  after  such  examination. 

Administering  oaths  and  examining  witnesses. 

Sec.  10.  Such  commissioners  shall  have  power  to  administer 
an  oath  to  any  pei'son  whose  testimony  may  be  required  on  any 
such  examination,  and  to  compel  the  appearance  and  attendance 
of  any  such  person,  for  the  purpose  of  examination,  by  summons, 
subpoena,  or  attachment,  in  the  manner  now  authorized  in  respect 
to  the  attendance  of  persons  as  witnesses  in  courts  of  record  in 
this  state ;  and  all  books  and  papers  which  may  be  deemed  neces- 
sary to  examine  by  the  commissioners  shall  be  produced,  and 
their  production  may  be  compelled  in  like  manner. 

Duty  when  corporation  violates  law. 

Sec.  17.  Whenever  it  shall  appear  to  the  board  of  bank  com- 
missioners, from  any  such  examination  or  report,  that  any  such 
corporation  has  committed  any  violation  of  law,  or  is  conducting 
its  business  in  an  unsafe  or  unauthorized  manner,  they  shall,  by 
an  order  under  their  hands,  direct  the  discontinuance  of  such 
illegal  and  unsafe  or  unauthorized  practice,  and  strict  conformity 
with  the  requirements  of  the  law,  and  with  safety  and  security 
in  its  transactions ;  and  whenever  any  such  corporation  shall 
refuse  or  neglect  to  make  any  such  report  as  hereinbefore 
required,  or  to  comply  with  any  such  order  as  aforesaid,  or 
whenever  it  shall  appear  to  the  said  board  that  it  is  unsafe  or 
inexpedient  for  any  such  corporation  to  continue  to  transact 
business,  they  shall  communicate  the  facts  to  the  attorney  gen- 
oral,  who  shall  thereupon  institute  such  proceedings  against  the 
corporation  as  the  nature  of  the  case  may  require. 

False  statement  revokes  authority. 

Sec.  18.  If  the  hoard  of  bank  coiumissionors  shall,  at  any 
lime,  have  salisfacLory  exidcnce  that  any  semi-annual  statement 


570  STATUTES    AT    LARGE. 

or  other  report  required  or  authorized  by  this  act,  made  or  to 
be  made  by  any  officer  or  officers  of  such  corporation  is  false,  it 
shall  be  the  duty  of  the  said  board  to  immediately  revoke  the 
certificate  of  authority  gi'auted  on  behalf  of  such  corporation, 
and  mail  a  copy  of  such  revocatiou  to  said  corporation  and  to 
the  clerk  of  every  court  of  record  iu  this  state.  Such  revocation 
shall  not  be  set  aside  until  satisfactory  evidence  shall  be  given 
to  said  board  of  bank  commissioners  that  such  corporation  is  in 
substance  and  in  fact  in  the  condition  set  forth  in  such  state- 
ment or  report,  and  that  all  the  requirements  of  this  act  have 
been  complied  with.  Such  revocation  shall  be  sufficient  cause 
for  the  removal  of  such  corporation  from  any  appointment  held 
by  it  under  the  provisions  of  this  act. 

Retirement  from  business. 

Sec.  li).  Any  corporation  which  desires  to  retire  from  busi- 
ness under  this  act,  shall  furnish  to  the  board  of  bank  commis- 
sioners satisfactory  evidence  of  its  release  and  discharge  from  all 
the  ol)ligations  and  trusts  hereinl)efore  provided  for ;  whereupon 
they  shall  revoke  their  certificate  to  such  corporation,  and  there- 
upon the  treasurer  of  state  shall  return  to  said  cori)oration  all 
its  securities. 

Conflicting  laws  repealed. 

Sec.  20.  All  laws  and  parts  of  laws  in  conliict  with  the  pro- 
visions of  this  act  are  hereby  repealed. 

Time  act  shall  take  effect. 

Sec.  21.  This  act  shall  take  etfect  and  be  in  force  from  and 
after  its  passage. 

Corporations  shall   keep   inviolate  confidential   communications. 

Sec.  22.  Any  corporation  exercising  the  powers  and  perform- 
ing the  duties  provided  for  in  said  act,  shall  keep  inviolate  all 
communications  confidentially  made  to  it  touching  the  existence, 
condition,  management,  and  administration  of  any  trusts  con- 
fided to  it ;  and  no  creditor  or  stockholder  of  any  such  corpora- 
tion shall  be  entitled  to  disclosure  of  any  such  communication  ; 
provided,  however,  that  the  president,  manager  and  secretary  of 
such  corporation  shall  be  entitled  to  knowledge  of  such  communi- 
cation ;  and  provided  further,  that  in  any  suit  or  proceeding 
touching  the  existence,  condition,  mnnagement  or  administration 
of  such  trust,  the  court  wherein  I  he  snme  is  pending  may  require 
disclosure  of  any  such  (•oinniiinieatiou.  [Section  22  added 
March  20,  1903.] 


EXECUTORS.  571 

Use  of  the  word   "trust"   in    name,    prohibited,   except   to   certain 
corporations. 

Sec.  23.  The  use  of  the  word  "trust"  in  combination  or  in 
connection  with  the  word  "company,"  "corporation,"  "incorpora- 
tion," "association,"  "society,"  "organization."  or  "syndicate"  is 
hereby  prohibited  to  all  persons,  firms,  associations,  companies 
or  corporations,  other  than  corporations  provided  for  by  a  cer- 
tain act  of  the  legislature  entitled  "An  act  authorizing  certain 
corporations  to  act  as  executor  and  in  other  capacities  and  to 
provide  for  and  regulate  the  administration  of  trusts  by  such 
corporations,"  approved  April  6,  1891,  and  any  person,  firm, 
association,  company  or  corporation  which  uses  the  word  "trust" 
in  combination  with  or  in  connection  with  the  word  "company," 
"corporation,"  "incorporation,"  "association,"  "society."  "organi- 
zation" or  "syndicate"  as  the  name  under  which  business  is  done 
or  transacted,  shall  be  subject  to  the  provisions  of  the  act  last 
referred  to  and  to  the  supervision  of  the  bank  commissioners  as 
required  by  the  said  act.  Any  person,  firm,  association,  company 
or  corporation  making  use  of  the  word  "trust"  in  combination  or 
in  connection  with  the  word  "company,"  "corporation,"  "incor- 
poration," "association,"  "society,"  "organization"  or  "syndicate" 
in  the  manner  hereinabove  mentioned  in  the  transaction  of 
business  and  not  subject  to  the  provisions  of  said  act  and  the 
supervision  of  the  bank  commissioners  as  in  said  act  provided 
shall  forfeit  for  each  d;iy  the  offense  is  committed,  the  sum  of 
one  hundred  dollars,  to  be  recovered  by  the  bank  commissioners 
of  the  State  of  California  in  -the  manner  provided  by  law. 
[Section  23  added  March  IS,  1905.] 

See,  also,  §  290a  and  §  2901/2  of  the  Civ.  C. 
5  Cal.  App.  im. 

See,  also,  Banks  and  Banking. 


572  STATUTES    AT   LARGE. 

FACTORIES  AND  WORKSHOPS. 

See  Health  and  Sanitation. 


FOREIGN  CORPORATIONS. 

An    act    in    relation    to    foreign    corporations. 

(Designation  of  agent,  etc.)  Approved  April  1,  1872;  stats. 
1871-2,  p.  826;  amended  1899,  p.  111.  Superseded  by  Civ.  C. 
§§  405,  406,  as  adopted  in  1905. 


An  act  requiring  corporations  organized  under  tlie  laws  of 
another  state,  territory  or  -foreign  country,  to  file  a  certified 
copy  of  their  articles  of  incorporation  in  the  office  of  the 
secretary  of  state,  and  a  certified  copy  thereof,  duly  certified 
by  the  secretary  of  state  of  this  state,  in  the  office  of  the 
county  clerk  of  the  county  where  its  principal  place  of  busi- 
ness is  located  and  also  where  such  corporation  owns  prop- 
erty, and  requiring  such  corporation  to  pay  to  the  secretary 
of  state  the  same  fees  as  are  paid  by  corporations  formed 
under  the  laws  of  the  State  of  California  and  providing  for 
a  penalty  for  the  violation  of  the  provisions  of  this  act. 

Approved  March   8,   1901  ;  stats.   1901,  p.    108.     Superseded  by 
Civ.  C.  §§  408,  409,  410,  as  adopted  in  1905. 


FRANCHISES. 

(See,    also,    Municipnl    Vorporations,    post,    for    granting    of 
franchises  by  trustees  of  cities  of  the  fifth  and  sixth  classes.) 

An  act  relating  to  the  granting  by  counties  and  municipalities  of 
franchises  for  the  construction  of  paths  and  roads  for  the 
use  of  bicycles  and  other  horseless  vehicles. 

Approved  March  27,   1897  ;  stats.  1897,  p.   191.     Superseded  by 
Civ.  C.  §  524,  enacted  in  1905,  and  Pol.  C.  §  4047,  enacted  in  1907. 


F1!A-NCI11SES.  r)7H 

An  act  providing  for  the  sale  of  street  railroad  and  other  fran- 
chises in  counties  and  municipalities,  and  providing  condi- 
tions for  the  granting  of  such  franchises  by  legislative  or 
other   governing    bodies,   and    repealing    conflicting   acts. 

Approved  March  22,  1905  ;  stats.  1905,  p.  777. 
Amended  March  3,   1909  ;  stats.   1909,  p.  125. 

Tlir  peojjle  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Certain  franchises,  by  whom  granted. 

Section  L  Every  franchise  or  privilege  to  erect  or  lay  tele- 
graph or  telephone  wires,  to  construct  or  operate  street  or  inter- 
urban  railroad.s  upon  any  public  street  or  highway,  to  lay  gas 
pipes  for  the  purpose  of  carrying  gas  for  heat  and  power,  to 
erect  poles  or  wires  for  transmitting  electric  heat  and  power 
along  or  upon  any  public  street  or  highway,  or  to  exercise  any 
other  privilege  whatever  hereafter  proposed  to  be  granted  by 
boards  of  supervisors,  boards  of  trustees,  or  common  councils, 
or  other  governing  or  legislative  bodies  of  any  county,  city  and 
county,  city  or  town  within  this  state,  except  steam  railroads 
and  except  telegraph  or  telephone  lines  doing  an  interstate  busi- 
nesjs,  and  renewals  of  franchises  for  piers,  chutes,  or  wharves, 
shall  be  granted  ni)on  th;>  conditions  in  this  act  provided,  and 
not  otherwise. 

Application  to  be  filed — Advertisement — Time  of  publication. 

Sec.  2.  An  appliciiut  for  any  franchise  or  privilege  above 
mentioned  shall  file  with  the  governing  or  legislative  body  oi" 
the  county  or  municipality  an  application,  and  thereupon  said 
governing  body  shall,  in  its  discretion,  advertise  the  fact  of  said 
application,  together  with  a  statement  that  it  is  proposed  to 
grant  the  same,  in  one  or  more  newspapers  of  the  county,  city 
and  county,  city  or  town  wherein  the  said  franchise  or  privilege 
is  to  be  exercised.  Said  advertisement  must  state  that  bids 
will  be  received  for  such  franchise,  and  that  it  will  be  awarded 
to  the  highest  bidder,  and  the  same  must  be  published  in  such 
newspaper  once  a  day  for  ten  successive  days,  or  as  often  during 
said  period  as  said  paper  is  published,  if  it  be  a  daily  news- 
paper, and  if  there  he  no  daily  newspaper  published  in  such 
county,  city  and  county,  city  or  town,  then  it  shall  be  published 
in  a  weekly  newspaper  once  a  week  for  four  successive  weeks, 
;iMd   in   eitbcr  case   the  full  ])ublication   must  b(^  completed   not 


n74  STATUTES    AT    T.ARfiE. 

less  tlmii  twenty  uor  more  than  thirty  days  before  any  fnuther 
action  can  be  talvcn  thereon.  [Section  2  amended  Marcli  3, 
1909;  in  ei3fect  in  sixty  days.] 

Facts  stated  in  publication — Percentage  paid — Forfeiture  of 
franchise. 
Sec.  3.  The  iniblication  must  slate  the  character  of  tlie 
franchise  or  privilege  proposed  to  be  granted,  the  term  for  which 
it  is  granted,  and,  if  it  be  a  street  railroad,  the  route  to  l)e 
traversed ;  that  sealed  bids  therefor  will  be  received  up  to  a 
certain  hour  and  day  named  therein,  and  that  the  successful 
bidder  and  his  assigns  must,  during  the  life  of  said  franchise, 
pay  to  the  county  or  municipality  two  per  cent  (2%)  of  the 
gross  annual  receipts  of  the  person,  partnership  or  corpoi*ation 
to  whom  the  franchise  is  awarded,  arising  from  its  use,  opera- 
tion or  possession.  No  percentage  shall  be  paid  for  the  first 
live  (5)  years  succeeding  the  date  of  the  franchise,  but  there- 
after such  percentage  shall  be  payable  annually ;  and  in  the 
event  said  payment  is  not  made,  said  franchise  shall  be  foi-- 
feited ;  provided  further,  that  if  the  franchise  be  a  renewal  of  a 
right  already  in  existence,  the  iiayment  of  said  percentage  of 
gross  receipts  shall  begin  at  once. 

Wlien  an  extension  of  street  railroad. 

Sec.  4.  In  case  the  franchise  granted  shall  be  an  extension 
of  an  existing  system  of  street  railroad,  then  the  gro.ss  receipts 
shall  be  estimated  to  be  one  half  of  the  proportion  of  the  total 
gross  receipts  of  said  system  which  the  mileage  of  such  exten- 
sion bears  to  the  total  mileage  of  the  whole  system,  and  said 
estimate  shall  be  conclusive  as  to  the  amount  of  the  gross 
receipts  of  said  extension. 

Sale  to  higt-.est  bidder — Increase  of  highest  bid — Amount  of 
money  to  accompany  bid — Deposit — Readvertisement. 
Sec.  5.  Said  advertisement  shall  also  contain  a  statement 
that  the  said  franchise  will  be  struck  off,  sold  and  awarded  to 
the  person,  firm  or  corporation  who  shall  make  the  highest  cash 
bid  therefor;  provided,  only,  that  at  the  time  of  the  opening 
of  said  bids  any  responsible  person,  firm  or  corporation  present 
or  represented  may  bid  for  said  franchise  or  privilege  a  sum 
not  less  than  ten  per  cent  above  the  highest  sealed  bid  therefor, 
and  said  bid  so  made  may  be  raised  not  less  than  ten  per  cent 
by  any  other  responsible  bidder,  and  said  bidding  may  so  con- 


FRANCHISES.  f)  ( fi 

tinue  until  finally  said  franchise  shall  be  struck  off,  sold,  and 
awarded  by  said  governing  body  to  the  highest  bidder  therefor 
in  gold  coin  of  the  United  States.  Each  sealed  bid  shall  be 
accompanied  with  cash  or  a  certified  check,  payable  to  the 
treasurer  of  such  countj^  or  numicipality,  for  the  full  amount 
of  said  bid,  and  no  sealed  bid  shall  be  considered  unless  said 
cash  or  check  is  enclosed  therewith  and  the  successful  bidder 
shall  deposit  at  least  ten  per  cent  of  the  amount  of  his  bid 
with  the  clerk  of  such  county  or  municipality  before  the  fran- 
chise shall  be  sti-uck  off  to  him.  And  if  he  shall  fail  to  make 
such  deposit  immediately,  then  and  in  that  case,  his  bid  shall 
not  be  received,  and  shall  be  considered  as  void,  and  the  said 
franchise  shall  then  and  there  be  again  offered  for  sale  to  the 
bidder  who  shall  make  the  highest  cash  bid  therefor,  subject 
to  the  same  conditions  as  to  deposit,  as  above  mentioned.  Said 
procedure  shall  bo  had  until  said  franchise  is  struck  off,  sold, 
and  awarded  to  a  bidder  who  shall  make  the  necessary  deposit 
of  at  least  ten  per  cent  of  the  amount  of  his  bid  therefor,  as 
herein  provided.  Said  succes.sful  bidder  shall  deposit  with  the 
clerk  of  such  county  or  municipality,  within  twenty-four  hours 
of  the  acceptance  of  his  bid,  the  remaining  ninety  per  cent  of  the 
amount  thereof,  and  in  case  he  or  it  shall  fail  to  do  so,  then 
the  said  deposit  theretofore  made,  shall  be  forfeited,  and  the  said 
award  of  said  franchise  shall  be  void,  and  the  said  franchise 
shall  then  and  there,  by  said  governing  body,  be  again  offered 
for  sale  to  the  highest  bidder  therefor,  in  the  same  manner,  and 
under  the  same  restriction  as  hereinbefore  provided,  and  in  case 
said  bidder  shall-  fail  to  deposit  with  the  clerk  of  such  county 
or  municipality,  the  remaining  ninety  per  cent  of  his  bid, 
within  twenty-four  hours  after  its  acceptance,  the  award  to  him 
of  said  franchise  shall  be  set  aside,  and  the  deposit  theretofore 
made  by  him  shall  be  forfeited,  and  no  further  proceedings  for 
a  sale  of  said  franchise  shall  be  had  unless  the  same  shall  be 
readvertiscd  and  again  offered  for  sale,  in  the  manner  herein- 
before provided. 

When  work  shall  commence. 

Sec.  G.  Work  to  erect  or  lay  telegraph  or  telephone  wires,  to 
construct  street  railroads,  to  lay  gas  pipes  for  the  purpose  of 
carrying  gas  for  heat  and  power,  to  erect  poles  or  wires  for 
transmitting  electric  heat  or  power,  along  or  upon  any  public 
street   or   highway,    or   to   exercise   any    privilege    whatever,    a 


."76  STATUTES    AT    LARGK. 

I'lauchise  t'ur  which  shall  have  been  grautcd  iu  accordanco  with 
the  terms  of  this  act,  shall  be  commenced  in  good  faith  within 
not  more  than  fonr  months  from  the  granting  of  any  such  fran- 
chise, and  if  not  so  commenced  within  said  time  said  franchise 
so  granted  shall  be  declared  forfeited,  and  slmll  be  completed 
within  not  more  than  three  years  thereafter,  and  if  not  so  com- 
pleted within  said  time  said  franchise  so  granted  shall  be  for- 
feited ;  provided,  that  for  good  cause  shown  the  governing  or 
legislative  body  may  by  resolution  extend  the  time  for  comple- 
tion thereof,  not  exceeding  three  months. 

Successful  bidder  to  file  bond — Event  of  failure. 

Sec.  7.  The  successful  Judder  for  any  franchise  or  privilege 
struck  off,  sold,  and  awarded  under  this  act  shall  file  a  bond 
running  to  said  county,  city  and  county,  or  city  or  town,  with, 
at  least,  two  good  and  sufficient  sureties,  to  be  approved  by 
such  governing  body,  in  a  penal  sum  by  it  to  be  prescribed,  and 
set  forth  in  the  advertisement  for  bids,  conditioned  that  such 
bidder  shall  well  and  truly  observe,  fulfill  and  perform  each  and 
every  term  and  condition  of  such  franchise,  and  that  in  case  of 
any  breach  of  condition  of  such  bond,  the  whole  amount  of  the 
penal  sum  therein  named  shall  be  taken  and  deemed  to  be 
liquidated  damages,  and  shall  be  recoverable  from  the  principal 
and  sureties  upon  said  bond.  Said  bond  shall  be  filed  with  such 
governing  body  within  five  days  after  such  franchise  is  awarded, 
and  upon  the  filing  aud  approval  of  such  bond,  the  said  franchise 
shall,  by  said  governing  or  legislative  body,  be  granted  by  ordi- 
nance to  the  person,  firm  or  corijoration  to  whom  it  has  been 
struck  off,  sold,  or  awarded,  and  in  case  that  said  bond  shall  not 
be  so  filed,  the  award  of  such  franchise  shall  be  set  aside,  and 
any  money  paid  therefor  shall  be  forfeited,  and  said  franchise 
shall,  in  the  discretion  of  said  governing  or  legislative  body,  be 
readvertised,  aud  again  offered  for  sale  in  the  same  manner,  and 
tinder  the  same  restrictions,  as  hereinbefore  pi'ovided. 

Duty  of  attorney  general. 

Sec.  8.  It  shall  be  the  duty  of  the  attorney  general,  upon 
the  complaint  of  any  county  or  municipality,  or,  in  his  discre- 
tion, upon  the  complaint  of  any  taxpayer,  to  sue  for  the  for- 
feiture of  any  franchise  granted  under  the  terms  of  this  act,  for 
the  non-compliance  with  any  condition  thereof. 


FRANCHISES.  &(( 

Certain  clauses  and  conditions  to  be  omitted. 

Sec.  !).  No  clause  or  condition  of  any  kind  shall  be  inserted 
ill  any  franchise  or  grant  offered  or  sold  under  the  terms  of  this 
act,  which  shall  directly  or  indirectly  restrict  free  and  open 
competition  in  bidding  therefor,  and  no  clause  or  provision  shall 
be  inserted  in  any  franchise  offered  for  sale,  which  shall  in  any- 
wise favor  one  person,  firm  or  corporation,  as  against  another,  in 
bidding  for  the  purchase  thereof. 

Violation  of  provisions  of  this  act  by  members  of  governing 
body. 
Sec.  10.  Any  member  of  any  common  council  or  other  gov- 
erning or  legislative  body  of  any  county,  city  and  county,  city 
or  town  of  this  state,  who,  by  his  vote,  violates  or  attempts  to 
violate  the  provisions  of  this  act,  or  any  of  them,  shall  be  guilty 
of  a  misdemeanor,  and  may  bo  punished  therefor,  as  provided 
by  law,  and  may  be  deprived  of  his  ofiice  by  the  decree  of  a  court 
of  competent  jurisdiction,  after  trial  and  conviction. 

Repeal  of  conflicting  acts — Certain  acts  not  repealed — Time  of 
taking  effect. 

Sec.  n.  All  acts  or  parts  of  acts  in  conflict  herewith  are 
hereby  repealed ;  provided,  however,  that  nothing  herein  con- 
tained shall  be  construed  as  repealing,  or  amending  the  following 
acts,  to  wit :  "An  act  relating  to  the  granting  by  the  counties 
and  municipalities  of  franchise  for  the  construction  of  ])aths 
and  roads  for  the  use  of  bicycles  and  other  horseless  vehicles," 
approved  March  twenty-seventh,  eighteen  hundred  and  ninety- 
seven  ;  "An  act  to  authorize  cities  and  towns  to  grant  fran- 
chises for  the  construction  and  maintenance  of  railroads  beyond 
the  limits  of  such  cities  or  town.s  leading  to  public  parks  owned 
thereby,"  being  chapter  forty  of  the  laws  of  eighteen  hundred 
and  ninety-seven  of  the  State  of  California. 

This  act  shall  take  effect  immediately. 

(See  McGinnls  vs.  City  of  tSan  Jose,  1.53  Cal.  712.) 

(See,  also.  Municipal  Corporations,  statutes  at  large  pnsf. 
for  laws  relating  to  cities  of  the  fifth  and  sixth  classes.) 

Note. — Section  11  erroneously  refers  to  "chapter  forty  of  the 
laws  of  eighteen  liundred  and  ninety-seven,"  etc.  ;  the  correct 
chapter  number  is  fifty.  For  copy  of  act  see  Street  Railroads. 
First  act  mentioned  in  section  11  is  codified.  (See  Civ.  C.  §  524 
and  Pol.  C.  §  4047.) 

25— CL 


578  STATUTES    AT    LARGE. 


FRAUDULENT  REPORTS. 

An    act   to    protect    stockholders    and    persons    dealing    with    cor- 
porations   in    this    state. 

Approved  March  29,  1878;  stats.  1877-8,  p.   69.''). 
Amended  March  22,   1905;  stats.   1905,  p.   TSC. 

'J'hr.  pc<>i)lf  of  the  State,  of  California,  rct)rrs(nl((l   in  nenatc  aiiii 
usscmhly,  do  enact  as  folloivn: 

False  reports  tay  officers  of  corporations. 

Section  1.  Any  superiutoudeut,  director,  secretary,  man- 
ager, agent,  or  other  olticer,  of  any  corporation  formed  or  exist- 
ing under  the  laws  of  this  state,  or  transacting  business  in  the 
same,  and  any  person  pretending  or  holding  himself  out  as  such 
superintendent,  director,  secretary,  manager,  agent,  or  other 
officer,  who  shall  willfully  subscribe,  sign,  indorse,  verify,  or 
otherwise  assent  to  the  publication,  either  generally  or  privately, 
to  the  stockholders  or  other  persons  dealing  with  such  corpora- 
tion, or  its  stock,  any  untrue  or  willfully  and  fraudulently 
exaggerated  report,  prospectus,  account,  statement  of  operations, 
values,  business,  profits,  expenditures  or  prospects,  or  other 
paper  or  document  intended  to  produce  or  give,  or  having  a 
tendency  to  produce  or  give,  to  the  shares  of  stock  in  such  cor- 
poration a  greater  value  or  less  apparent  or  market  value  than 
they  really  possess,  or  with  the  intention  of  defrauding  any 
particular  person  or  persons,  or  the  public,  or  persons  generally, 
shall  be  deemed  guilty  of  a  felony,  and  on  conviction  thereof, 
shall  be  punished  by  imprisonment  in  state  prison  or  a  county 
jail  not  exceeding  two  years,  or  by  fine  not  exceeding  five  thou- 
s.Tud  dollars,  or  by  both. 

Repeal  of  conflicting  acts. 

Sec.  2.  All  acts  and  parts  of  acts  in  conflict  with  this  act 
are  hereby  repealed. 

Note. — The  act  of  March  29,  1878,  consists  of  but  one  section, 
hence  was  entirely  amended  and  superseded  in  1905. 

See,  also.  Pen.  C.  §  564. 


FRAUDULENT    REPORTS.  579 


An  act  to  prevent  false  and  incorrect  representations  and 
advertisements  concerning  articles  offered  for  sale  and  pre- 
scribing  a   punishment  for  the   violation   thereof. 

Approved  April  22,  1909  ;  stats.  1909,  p.  1078. 

The  itenple  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

False  representations  or  misleading  advertisements. 

Section  1.  Any  firm,  person,  corporation  or  associalioii  of 
persons,  or  any  employee  of  such  or  any  of  such,  who  in  llic 
newspapers  or  otiier  periodicals  of  this  state,  or  in  public  adver- 
tisements, or  in  communications  intended  for  a  large  number  of 
persons  knowingly  makes  or  disseminates  any  statements  or 
assertions  of  facts  with  respect  to  his,  its  or  their  business  affairs 
concerning  the  quantity,  the  quality,  the  value,  the  price,  the 
method  of  production  or  manufacture,  or  the  fixing  of  the  price 
of  his,  its,  or  their  merchandise  or  professional  work ;  or  the 
manner  or  source  of  purchase  of  such  merchandise,  or  the  pos- 
session of  awards,  prizes  or  distinctions ;  or  the  motive  or 
purpose  of  a  sale,  intended  to  have  the  appearance  of  an  advan- 
tageous offer,  which  is  or  are  untrue  or  calculated  to  mislead, 
shall  be  guilty  of  a  misdemeanor. 


GAME  PRESERVES. 

An  act  to  provide  for  the  transfer  to  the  State  of  California  by 
owners  of  patented  lands  therein  of  the  right  to  preserve  and 
protect  wild  game  on  such  patented  lands;  to  define  the 
duties  of  the  state  board  of  fish  commissioners  in  relation 
to  the  control  of  such  rights,  and  to  declare  the  hunting  of 
wild  game  within  the  exterior  boundaries  of  the  land  to 
which   such   right  attaches,   a   misdemeanor. 

Approved  March  21,  1907  ;  stats.  1907,  p.  788. 
Amended  March  20,   1909  ;  stats.   1909,  p.   518. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Protection    of   wild   game   on    patented    lands — State    game    pre- 
serve— Close  season. 
Section  1.     Any  person,  firm  or  corporation,  owning  and  in 
possession  of  patented  lands  in  the  State  of  California,  embrac- 


580  STATUTES    AT   LABGE. 

ing  an  area  of  not  less  than  one  hundred  and  sixty  acres,  may 
transfer,  by  an  instrument  in  writing  duly  acknowledged  before 
an  officer  authorized  under  the  laws  of  this  state  to  take  acknowl- 
edgments, to  the  State  of  California,  the  right  to  preserve  and 
protect  all  wild  game  on  the  land  described  therein  for  a  period 
of  not  less  than  one  year  nor  more  than  five  years.  Such  instru- 
ment shall  be  filed  with  the  state  board  of  fish  commissioners ; 
whereupon  such  board  may  in  its  discretion  declare  the  lands 
described  in  such  instrument  a  state  game  preserve,  and  there- 
after for  the  period  named  therein,  shall  for  all  the  puiiioses 
relating  to  the  preservation  and  protection  of  wild  game  be 
under  the  control  of  said  board.  Such  preserve  shall  be  num- 
i)ered  in  the  order  of  the  filing  of  the  instrument  of  transfer 
thereof.  A  copy  of  the  declaration  establishing  the  same  shall, 
under  the  seal  of  said  board  be  issued  to  such  person,  firm  or 
corporation,  transferring  the  right  therefor.  During  the  period 
named  in  such  instrument  it  shall  be  unlawful  for  any  person  to 
hunt,  pursue,  shoot,  take,  kill  or  destroy  any  wild  game  within 
the  exterior  boundaries  thereof.  The  state  board  of  fish  com- 
missioners shall  cause  to  be  prepared  suitable  notices  to  be 
posted  under  its  direction  on  each  state  game  presei"ve  and  such 
notice  shall  describe  the  lands  constituting  the  same,  and  shall 
contain  a  warning  to  all  persons  to  refrain  for  the  period  named 
therein  from  violations  of  the  provisions  of  this  act;  provided, 
however,  that  no  provision  in  this  act  contained,  shall  be  con- 
strued as  prohibiting  or  preventing  any  person  or  persons  from 
hunting  or  taking  fish  and  wild  game  from  or  on  navigal)le 
water.  [Section  1  amended  March  20,  1900;  stats.  1000,  p.  518; 
in  effect  immediately.] 

Control  of  state  game  preserves.  " 

Sec.  2.  All  state  game  preserves  established  under  the  pro- 
visions of  this  act  shall  for  all  puriwses  of  preservation  and 
protection  of  wild  game  thereon,  be  under  the  control  and  man- 
agement of  the  state  board  of  fish  commissioners,  and  the  said 
board,  its  officers  and  employees,  and  all  game  wardens,  may  at 
all  times  enter  in  and  upon  such  preserves,  in  the  performance  of 
their  duties.  The  said  board  may  establish  such  regulations  as 
may,  in  its  judgment,  be  necessary  for  the  preservation  and  pro- 
tection of  the  wild  game  on  such  preserves,  and  for  that  purpose 
may  direct  and  authorize  game  wardens  or  other  officers  to 
execute  such  regulations.     All  expenses  incurred  in  carrying  out 


GAME   PRESERVES.  581 

the  provisions  of  this  act  and  the  regulatious  that  may  be  estab- 
lished thereunder,  shall  be  a  charge  against  and  paid  out  of  the 
"game  preservation  fund"  established  under  an  act  entitled  "An 
act  to  regulate  and  license  the  hunting  of  game  birds  and  animals 
and  to  provide  revenue  therefrom,  for  game  preservation  and 
restoration  and  to  make  appropriations  for  the  purpose  of  carry- 
ing out  the  objects  of  this  act." 

Penalty. 

Sec.  3.  The  hunting,  pursuing,  shooting,  taking,  killing  or 
destroying  of  any  wild  game  within  the  exterior  boundaries  of 
any  state  game  preserve  established  under  the  provisions  of  this 
act,  is  hereby  declared  a  misdemeanor,  and  all  fines  collected  in 
any  prosecution  therefor  shall  be  i)aid  into  said  "game  preserva- 
tion fund." 

Time  act  shall  take  effect. 

Sec.  4.  This  act  shall  take  effect  and  be  in  force  from  and 
after  its  passage. 


GAS  COMPANIES. 

An   act   concerning   gas   companies. 

Approved  April  4,  1870  ;  stat.s.  1869-70,  p.  815.  Continued  in 
force  by  section  19,  subdivision  20,  of  the  Pol.  C,  and  by  section 
123,  subdivision  20,  Pen.  C.  Superseded  and  in  effect  repealed 
by  act  of  1895,  p.  191,  which  later  act  was  amended  1897,  p.  210, 
and  repealed  1903,  p.  32.  See,  also,  section  19,  article  Xl,  Con- 
stitution, amended  in  1884. 


An  act  to  provide  for  the  letting  of  contracts  for  lighting  of 
streets  and  public  buildings  in  cities  and  towns  in  the  State 
of  California. 

Approved  March  26,   1895  ;  stats.   1895,  p.   191  Tamended   1897, 
p.  210.     Repealed  1903,  p.  32. 


582  STATUTES    AT    LARGE. 


HEALTH  AND  SANITATION. 

An  act  to  provide  for  the  proper  sanitary  condition  of  factories 
and  workshops,  and  the  preservation  of  the  health  of  the 
employees. 

Approved  February  6,  1889;  stats.   1889,  p.  3. 
Amended  March  2.3,  1901  ;  stats.  1901,  p.  571. 
Amended  February  12,   1903;  stats.   1903,  p.   16. 
Amended  February  22,   1909;  stats.   1909,  p.   43. 

Eu.  Note. — The  provisions  of  section  4  of  this  statute  as 
originally  enacted  were  held  to  be  unconstitutional  in  the  case  of 
iichae,zlei7i  vs.  Cabaniss,  135  Cal.  p.  466.  Section  4  was  amended 
in  1901  and  again  in  1909,  and  the  act  is  in  force  and  effect  in  its 
present  form. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assemhly,  do  enact  us  folloivs: 

Regulations  for  factories,  workshops,  mercantile,  and  other 
establishments. 
Section  1.  Every  factory,  workshop,  mercantile  or  other 
eslablishment,  in  which  five  or  more  persons  are  employed,  shall 
be  kept  iu  a  cleanly  state  and  free  from  the  effluvia  arising  from 
any  drain,  privy,  or  other  nuisance,  and  shall  be  provided,  within 
reasonable  access,  with  a  sufficient  number  of  water-closets  or 
privies  for  the  use  of  the  persons  employed  therein.  Whenever 
the  persons  employed  as  aforesaid  are  of  different  sexes,  a  suffi- 
cient number  of  separate  aud  distinct  water-closets  or  privies 
shall  be  provided  for  the  use  of  each  sex,  which  shall  be  plainly 
so  designated,  nnd  no  person  shall  be  allowed  to  use  any  water- 
closet  or  pi-i\y  assigned  to  persons  of  the  other  sex. 

Ventilation. 

Sec.  2.  Every  fiictory  or  workshop  iu  which  fi\e  or  more 
persons  are  employed  shall  be  so  ventilated  while  work  is  carried 
on  therein  that  the  air  shall  not  become  so  exhausted  as  to  be 
injurious  to  the  health  of  the  persons  employed  therein,  aud  shall 
also  be  so  ventilated  as  to  render  harmless,  as  far  as  practicable, 
all  the  gases,  vapors,  dust,  or  other  impurities  generated  iu  the 
course  of  the  manufacturing  ])rocess  or  liandicrafi  carried  on 
tli'-reii).  that   may  lie  ijijurious  to  healtli. 


HEALTH   AND   SANITATION.  •  583 

Unhealthy  places  condemned. 

Sec.  o.  No  basement,  cellar,  underground  apartment,  or 
other  place  which  the  commissioner  of  the  bureau  of  labor 
statistics  shall  condemn  as  unhealthy  and  unsuitable,  shall  be 
used  as  a  woi'kshop,  factory,  or  place  of  business  in  which  any 
person  or  persons  shall  be  employed. 

Sanitary  requirements  in  certain  establishments. 

Sec.  4.  In  any  factory,  workshop,  or  other  establishment 
where  a  work  or  process  is  carried  on  by  which  dust,  filaments, 
or  injurious  gases  are  produced  or  generated,  that  are  liable  to 
be  inhaled  by  persons  employed  therein,  the  person,  firm  or  cor- 
poration, by  whose  authority  the  said  work  or  process  is  carriinl 
on.  shall  cause  to  be  provided  and  used  in  said  factory,  worksho]) 
or  other  establishment,  exhaust  fans  or  blowers  with  pipes  and 
hoods  extending  therefrom  to  each  machine,  contrivance  or  appa- 
ratus by  which  dust,  filaments  or  injurious  gases  are  produced 
or  generated.  The  said  fans  and  blowers,  and  the  said  pipes 
and  hoods,  all  to  be  properly  fitted  and  adjusted,  and  of  power 
and  dimensions  sufficient  to  effectually  prevent  the  dust,  fila- 
ments, or  injurious  gases  produced  or  generated  by  the  al)ove 
said  machines,  contrivances  or  apparatuses,  from  escaping  into 
the  atmosphere  of  the  room  or  rooms  of  said  factory,  workshop 
or  other  establishment  where  persons  are  employed.  [Section  4 
amended  February  22,  1909;  in  effect  immediately.] 

Seats  for  female  employees. 

Sec.  5.  Every  person,  firm,  or  corporation  employing  females 
in  any  manufacturing,  mechanical,  or  mercantile  establishment 
shall  provide  suitable  seats  for  the  use  of  the  females  so  em- 
ployed, and  shall  provide  such  seats  to  the  number  of  at  least  one 
third  the  number  of  females  so  employed  ;  and  shall  permit  the 
use  of  such  seats  by  them  when  they  are  not  necessarily  engaged 
in  the  active  duties  for  which  they  are  employed.  [Section  5 
amended  February  12,  1903.] 

Penalty  for  violation. 

Sec.  G.  Any  person  or  corporation  violating  any  of  the  pro- 
visions of  this  act  is  guilty  of  a  misdemeanor,  and  upon  convic- 
tion thereof  shall  be  punished  by  a  fine  of  not  less  than  fifty 
dollars  nor  more  than  three  hundred  dollars,  or  by  imiirisonment 
in  the  county  jail  foi-  not  less  than  thirty  days  nor  mon;  than 
ninety  days,  or  by  both  such  line  and  imprisonment,  for  each 
offense.     [Section  0  amended  March  23,  1901.] 


584  .  STATUTES    AT   LAROE. 

Duty  of  labor  commissioner. 

Sec.  7.     It    shall    be    the    duty    of    the   commissiouer    of    the 
bureau  of  labor  statistics  to  enforce  the  provisions  of  this  act. 

Time  act  shall  take  effect. 

Sec.  S.     This  act  shall  take  effect  and  be  iu  force  from  and 
after  its  passage. 


An  act  providing  for  the  sanitation  of  food  producing  estab- 
lishments, places  where  food  is  stored,  prepared,  kept  or 
manufactured  and  in  which  food  is  distributed;  regulating 
the  health  of  persons  by  whom  the  materials  from  which  food 
is  prepared  or  the  finished  product  is  handled;  providing  for 
the  inspection  of  such  places,  persons  and  things;  declaring 
places  and  things  in  violation  of  this  act  to  be  nuisances 
dangerous  to  health  and  providing  for  the  abatement  of  the 
same;  making  violations  of  this  act  misdemeanors;  and  pro- 
viding  for  the  punishment  of  the  same. 

Approved  March  6,  1909  ;  stat.s.  1909,  p.  151. 

'I'hc  people  of  the  State  of  California,  represented  in  senate  and 
asscniblij,  do  enact  as  follows: 

Sanitation  required. 

Section  1.  Every  building,  room,  basement  or  cellar,  occu- 
pied, or  used  as  a  bakery,  confectionery,  cannery,  packing-house, 
slaughterhouse,  restaurant,  hotel,  grocery,  meat  market,  or  other 
place  or  apartment,  used  for  the  production,  preparation  for  sale, 
manufacture,  packing,  storage,  sale  or  distribution  of  any  food, 
shall  be  i)roperly  lighted,  drained,  plumbed  and  ventilated,  and 
conducted  with  strict  regard  to  the  influence  of  such  conditions 
upon  the  health  of  the  operatives,  employees,  clerks  or  other 
persons  therein  employed,  and  the  purity  and  wholesomeness  of 
the  food  theiein  produced,  kept,  handled  or  sold;  and  for  the 
purpose  of  this  act  the  terra  "food"  shall  include  all  articles  used 
for  food,  drink,  confectionery  or  condiment,  whether  simple  or 
compound,  and  all  substances  and  ingredients  used  in  the  prepa- 
ration thereof. 

Protection  of  food  from  flies,  etc. — Clothing  of  operatives. 

Sec.  2.  Tlie  floors,  sidewalls,  ceilings,  furniture,  receptacles, 
utensils,  ini])hMuouts  and  machinery  of  evei'y  establishment  or 
place  where  food   is  iiKUiufactured,  packed,  stored,  sold  or  dis- 


IIEALXn   AND   SANITATION.  585 

tributed,  shall  at  uo  time  be  kept  in  an  nnclean.  nnhealthful  oi- 
unsanitary  condition  ;  and  for  the  purposes  of  this  act,  unclean, 
unhealthful  and  unsanitary  conditions  shall  be  deemed  to  exist 
if  food  in  the  process  of  manufacture,  preparation,  packing, 
storing,  sale  or  distribution  is  not  securely  protected  from  flies, 
dust,  dirt,  unsanitary  conditions,  and  as  far  as  may  be  necessary, 
by  all  reasonable  means  from  all  other  foreign  or  injurious  con- 
tamination ;  and  if  the  refuse,  dirt,  and  the  waste  products 
subject  to  decomposition  and  fermentation  incident  to  the  manu- 
facture, preparation,  packing,  storing,  selling  and  distributing  of 
food,  are  not  removed  daily ;  and  if  all  trucks,  trays,  boxes, 
baskets,  buckets,  and  other  receptacles,  chutes,  platforms,  racks, 
tables,  shelves,  and  all  knives,  saws,  cleavers,  and  all  other 
utensils,  receptacles,  and  machinei-y,  used  in  moving,  handling, 
cutting,  chopping,  mixing,  canning,  and  all  other  processes  used 
in  the  preparation  of  food,  are  not  thoroughly  cleaned  daily  ; 
and  if  the  clothing  of  operatives,  employees,  clerks,  and  other 
persons  therein  employed,  is  unclean,  or  if  they  dress  or  undn-ss. 
or  leave  or  store  their  clothing  therein. 

Walls,  ceilings,  and  floors. 

Sec.  3.  The  side  walls  and  ceilings  of  every  bakery,  con- 
fectionery, hotel  and  restaurant  kitchen,  shall  be  well  plas- 
tered, or  ceiled,  with  metal  or  lumber,  or  shall  be  oil  painted  or 
kept  well  lime  washed,  or  otherwise  kept  in  a  good  sanitary 
condition,  and  all  interior  woodwork  of  every  bakery,  confec- 
tionery, hotel  and  restaurant  kitchen,  shall  be  kept  well  oiled 
or  painted  with  oil  paint,  and  be  kept  watched  clean  with  soap 
and  water  or  otherwise  kept  in  a  good  sanitary  condition  ;  and 
every  building,  room,  basement  or  cellar,  occupied  or  used  for 
the  preparation,  manufacture,  packing,  storage,  sale  or  distri- 
bution of  food,  shall  have  an  impermeable  floor,  made  of  cement 
or  tile  laid  in  cement,  brick,  wood  or  other  suitable  non- 
absorbent  material  which  can  be  flushed  and  washed  clean  with 
water. 

Screens. 

Sec.  4.  The  doors,  windows  and  other  openings  of  every 
food  producing  or  distributing  establishment,  where  practicable, 
shall  be  fitted  with  stationary  or  self-closing  screen  doors  and 
wire  window  screens,  of  not  coarser  than  fourteen  mesh  wire 
gauze. 


586  STATUTES    AT    I^ROE. 

Toilets — Lavatories. 

Sec.  fi.  Exery  huildinu.  room,  Ijascinent  or  cellar,  occupied 
or  used  for  the  prej^aratiou,  mauufaeture,  packing-,  canning,  sale 
or  distribution  of  food,  shall  have  convenient  toilet  or  toilet 
rooms,  separate  and  apart  from  the  room  or  rooms  where  the 
process  of  production,  manufacture,  packing,  canning,  .selling  or 
distributing,  is  conducted.  The  floors  of  such  toilet  rooms  shall 
be  of  cement,  tile  laid  in  cement,  wood,  brick  or  other  non- 
absorbent  -material,  and  shall  be  washed  and  scoured  daily. 
Such  toilets  shall  he  furnished  with  separate  ventilating  pipes 
or  flues,  discharging  into  soil  pipes,  or  on  the  outside  of  the 
building  in  which  they  are  situated.  Lavatories  and  washrooms 
shall  be  adjacent  to  toilet  rooms,  and  shall  be  supplied  with 
soap,  running  water  and  towels,  and  shall  be  maintained  in  a 
clean  and  sanitary  condition.  Operatives,  employees,  clerks  and 
all  persons  who  handle  the  material  from  which  food  is  prepared, 
or  the  finished  product,  before  beginning  work  and  immediately 
after  visiting  a  toilet  or  lavatory  shall  wash  their  hands  and 
arms  thoroughly  in  clean  water. 

Cuspidors. 

Sec.  (J.  Cusi)idors,  for  the  use  of  operatives.  emi)loye('s. 
clerks  and  other  persons,  shall  be  provided,  and  each  cuspidor 
shall  be  emptied  and  washed  out  daily  with  disinfectant  solu- 
tion and  not  less  than  five  ounces  of  such  solution  shall  be  left 
in  each  cuspidor  while  in  use.  No  operative,  employee,  clerk  or 
other  person,  shall  expectorate  or  discharge  any  substance  from 
his  nose  or  month,  on  the  floor  or  interior  side  wall  of  any 
building,  room,  basement,  or  cellar  where  the  production,  manu- 
facture, packing,  storing,  preparation  or  sale  of  any  food  product 
is  conducted. 

Sleeping  in  bake  shops,  etc. 

Seo.  7.  No  person  shall  be  allowed  to,  nor  shall  he,  reside 
or  sleep  in  any  room  of  a  bake  shop,  public  dining-room,  hotel 
or  restaurant  kitchen,  confectionery,  or  other  place  where  food 
Is  prepared,  produced,  manufactured,  ser\ed  or  sold. 

Infectious  diseases. 

Sec.  S.  No  employer  shall  require,  permit  or  suffer  any  per- 
son to  work,  nor  shall  any  person  work  in  a  building,  room, 
basement,  cellar,  place  or  vehicle,  occupied  or  used  for  the  pro- 
duction,  preparation,   manufacture,   packing,   storage,   sale,  dis- 


HEALTH    AND    SANITATION.  HS  ( 

tributiDii  ()!•  transporhition  of  food,  wlio  is  afflicted  or  affected 
with  any  venereal  disease,  smallpox,  diphtheria,  scarlet  fever. 
yellow  fever,  tuberculosis,  consumption,  l)ubonic  plague,  Asiatic 
cholera,  leprosy,  trachoma,  typhoid  fever,  epidemic  dysentery, 
measles,  mumps,  (ierman  measles,  whoopins-fough,  chicken-pox, 
or  any  other  infections  or  contagious  disease. 

Health  officers,  power  to  inspect — District  attorney,  duty  of. 

Sec.  0.  'i'he  members  of  the  state  board  of  health,  insp<'ctors 
and  agents  appointed  by  said  board,  and  all  local  health  officers 
and  inspectois,  shall  have  full  power  at  all  times  to  enter  every 
Iniilding,  room,  basement,  cellar,  or  any  place  occupied  or  used, 
or  suspected  of  being  occupied  or  used,  for  the  production,  manu- 
facture, preparation,  storage,  sale  or  distribution  of  food,  and 
to  inspect  the  premises  and  all  utensils,  implements,  receptacles, 
fixtures,  furniture  and  machinery  used  as  aforesaid,  and  if,  upon 
inspection,  any  such  building,  room,  basement,  cellar,  or  any 
such  place,  vehicle,  employer,  operative,  employee,  clerk,  driver, 
or  other  person,  is  found  to  be  in  violation  or  violating  any  of 
the  provisions  of  this  act,  or  if  the  production,  preparation, 
manufacture,  packing,  storing,  sale  or  distribution  of  food  is 
being  conducted  in  a  manner  detrimental  to  the  health  of  the 
employee's  or  operatives  or  to  the  character  or  quality  of  the 
food  therein  being  produced,  manufactured,  packed,  stored,  sold, 
distributed  or  conveyed,  the  officer  or  inspector  m.nking  tin' 
examination  shall  at  once  make  a  written  report  of  the  same  to 
the  district  attorney  of  the  county  who  shall  prosecute  all  per- 
sons violating  any  of  the  provisions  of  this  act,  and  also  to  the 
state  board  of  health.  The  state  board  of  health,  from  time  to 
time,  as  in  its  discretion  it  may  determine,  may  publish  such 
reports  in  its  monthly  bulletin. 

Public  nuisances. 

Sec.  10.  All  buildings,  rooms,  basements,  cellars,  and  other 
places  and- things,  kept,  maintained  or  operated,  or  which  are, 
in  violation  of  the  provisions  of  this  act  or  any  of  them,  and 
all  food  produced,  prepared,  manufactui'ed,  packed,  stored,  kept, 
sold,  distributed  or  transported,  in  violation  of  the  provisions 
of  this  acl  (u-  any  of  them,  are  hereby  declared  to  be  public 
nuisances,  dangerous  to  health.  Such  nuisances  may  be  abated 
or  enjoined,  in  an  action  brought  for  that  purpose  by  the  local 
or  state  lio.ird  of  health,  or  they  may  be  summarily  abated   in 


nSS  STATUTES    AT    I-ARCiE. 

the   mauuei'   provided   by   law   for   the   summary   abatement   of 
public  nuisances  dangerous  to  health. 

Penal  clause. 

Sec.  11.  Any  person,  firm  or  corporation,  whether  as  prin- 
cipal or  agent,  employer  or  employee,  who  violates  any  of  the 
provisions  of  this  act  shall  be  guilty  of  a  misdemeanor,  and 
each  day  that  conditions  or  actions,  in  violation  of  this  act, 
shall  continue,  shall  be  deemed  to  be  a  separate  and  distinct 
offense,  and  for  each  offense,  upon  conviction,  he  shall  be  pun- 
ished by  a  fine  of  not  less  than  twenty-five  dollars,  nor  more 
than  five  hundred  dollars,  or  shall  be  imprisoned  in  the  county 
jail  for  a  term  not  exceeding  six  months,  or  by  both  such  fine 
and  imprisonment. 


An  act  declaring  property  infested  with  certain  rodents  to  be 
a  public  nuisance;  requiring  owners,  occupants,  and  per- 
sons having  possession  of  or  dominion  over  such  property  to 
endeavor  to  exterminate  and  destroy  sucli  rodents;  providing 
for  the  inspection  of  property  by  boards  of  health  and  health 
officers;  authorizing  boards  of  supervisors  and  other  govern- 
ing bodies  to  purchase  materials  and  employ  inspectors  to 
prosecute  such  work  of  extermination;  authorizing  siate  and 
local  health  authorities  to  prosecute  such  work  in  certain 
cases;  providing  for  the  payment  of  the  expense  thereof; 
making  the  amount  of  such  expense  a  lien  on  the  property; 
providing  for  the  collection  of  such  amount  by  foreclosure 
of  such  lien  and  declaring  any  violation  of  the  provisions 
thereof  to  be  a   misdemeanor. 

Approved  Marcli   13,  1909;  stats.   1909,  p.  311.  • 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Duty  of  persons  to  exterminate  rodents. 

Section  1.  It  shall  be  and  is  hereby  declared  to  be  the  duty 
of  every  person,  firm,  co-partnership,  company  and  corporation, 
owning,  leasing,  occupying,  possessing  or  having  charge  of  or 
dominion  over,  any  land,  place,  building,  structure,  wharf,  pier, 
dock,  vessel  or  water  craft,  which  is  infested  with  rats,  mice, 
gophers  or  ground  squirrels,  or  as  soon  as  the  presence  of  the 
same  shall  come  to  his,  their,  or  its  knowledge,  at  once  to  pro- 
ceed and  to  continue  in  good  faith  to  endeavor  to  exterminate 
and  destroy  such  rodents,  by  poisoning,  trapping,  and  other 
appropriate  means. 


HEALTH   AND   SANITATION.  589 

State  board  of  health,  authority  of. 

Sec.  i:.  The  state  board  of  health  and  inspectors  appointed 
by  such  board,  and  local  health  officers  and  inspectors  appointed 
for  the  purpose,  as  hereinafter  provided,  shall  have  authority, 
and  shall  be  permitted  to  enter  into  and  upon  any  and  all  lands, 
places,  buildings,  structures,  wharves,  piers,  docks,  vessels  ami 
water  craft,  for  the  purpose  of  ascertaining  whether  the  same 
are  infested  with  such  rodents  and  whether  the  requirements  of 
this  act  as  to  the  extermination  and  destruction  thereof  are 
being  complied  with ;  provided,  however,  that  no  building  occu- 
pied as  a  dwelling,  hotel  or  rooming  house,  shall  be  entered  for 
such  purpose  except  between  the  hours  of  nine  o'clock  in  the 
forenoon  and  five  o'clock  in  the  afternoon  of  anj'  day. 

Supervisors  may  appropriate  moneys. 

Sec.  3.  The  board  of  supervisors  of  each  county,  and  the 
city  council  or  other  governing  body  of  each  city  and  county, 
city  and  town,  whenever  it  may  by  resolution  determine  that  it 
is  necessary  for  the  preservation  of  the  public  health  or  to  pre- 
vent the  spread  of  contagious  or  infectious  disease,  communi- 
cable to  mankind,  or  when  such  board  shall  so  determine  that 
it  is  nece.ssary  to  prevent  great  and  irreparable  damage  to  crops 
or  other  property,  may  appropriate  moneys  for  the  purchase  of, 
and  may  purchase,  poison,  traps  and  other  materials  for  the 
purpose  of  exterminating  and  destroying  such  rodents,  in  such 
county,  city  and  county,  city  or  town,  and  may  employ  and  pay 
inspectors,  who  shall  have  authority  to  and  shall  prosecute 
such  work  of  extermination  and  destruction,  under  the  direction 
of  such  board,  or  of  the  local  health  officer,  or  board  of  health, 
on  both  private  and  public  property,  in  such  county,  city  and 
county,  city  or  town. 

Refusal  to  exterminate — Expense  of  extermination — Sale  of 
property. 
Sec.  4.  Whenever  any  person,  firm,  co-partnership,  com- 
pany or  corporation,  owning,  leasing,  occupying,  possessing  or 
having  charge  of  or  dominion  over,  any  land,  place,  building, 
structure,  wharf,  pier,  dock,  vessel  or  water  craft,  which  is 
infested  with  such  rodents,  shall  fail,  neglect  or  refuse  to  pro- 
ceed and  to  continue  to  endeavor  to  exterminate  and  destroy 
such  rodents,  as  herein  required,  it  shall  be  the  duty  of  the  state 
board   of   health,   its   inspectors   and   the   local   board   of   health 


590  STATUTES    AT   LARGE. 

and  lioalth  officer,  at  once  to  cause  such  nuisance  to  be  abated 
l)y  exterminating  and  destroying  such  rodents.  The  expense 
thereof  shall  be  a  charge  against  the  county,  city  and  county, 
city  or  town,  wherein  the  work  is  done,  and  the  board  of 
supervisors  or  other  governing  body  shall  allow  and  pay  the 
snme.  Thereupon,  the  clerk  of  such  board  shall  file  in  the 
office  of  the  county  recorder  a  notice  of  such  payment,  claim- 
ing a  lien  on  such  property  for  the  amount  of  such  payment. 
Any  and  all  sums  so  paid  by  such  county,  city  and  county, 
city  or  town,  shall  be  a  lien  on  the  property  on  which  said 
nuisance  shall  have  been  abated,  and  may  be  recovered  in  an 
action  against  such  property,  which  action  to  foreclose  such 
lien  shall  be  brought,  within  ninety  days  after  such  payment, 
and  be  prosecuted  by  the  district,  city  or  town  attorney,'  in 
the  name  of  such  county,  city  and  county,  city  or  town,  and 
for  its  ))enefit.  When  the  property  is  sold,  enough  of  the  pro- 
ceeds shall  be  paid  into  the  treasury  of  such  county,  city  and 
county,  city  or  town,  to  satisfy  such  lien  and  the  costs,  and 
the  overplus,  if  any  there  be,  shall  be  paid  to  the  owner  of  the 
property,  if  known,  and  if  not  known  shall  be  paid  into  court 
for  the  u.se  of  such  owner  when  ascertained.  When  it  appears 
from  the  complaint  in  such  action  that  the  property  on  which 
such  lien  is  to  be  foreclosed  is  likely  to  be  removed  from  the 
jurisdiction  of  the  court,  the  court  may  appoint  a  receiver  to 
take  possession  of  the  property  and  hold  the  same  while  the 
action  may  be  pending  or  until  the  defendant  shall  execute  and 
file  a  bond,  with  sufficient  sureties,  conditioned  for  the  payment 
of  any  judgment  that  may  be  recovered  against  him  in  the 
action  and  all  costs. 

Penalty. 

Sf:c.   .'').     Any  violation   of   the   jirovisions  of  this   act  shall   bo 
docnicd  a   misdemeanor  and  sli.all   be  i)unishal)ie  as  such. 


591 


HOLIDAYS. 

See,  also,  Civ.  C.  §7;  Code  Civ.  Troc.  §§10.  11;  Pol.  C. 
§§  10,  11. 

An  act  declaring  February  12th,  the  birthday  of  Abraham 
Lincoln,  a  legal  holiday  and  providing  for  a  half-day  session 
in  the  public  schools  on  such  holiday,  and  for  certain  exer- 
cises  in   the  public  schools. 

Approved  April  13,  inO!)  ;  .stats.   1900,  p.   S6t. 

Y'/ir  jtinple  of  the  State  of  CdUfornia.  rci)rrsrntc<l    in   snuilc   and 
assemhly,  do   enact  as  foUoivs: 

Birthday  of  Lincoln  a  holiday. 

Section  1.  February  12th,  the  l)irth(hiy  of  Abraham  Lincoln, 
i.s  hereby  declared  a  legal  holiday  ;  itror'nlvd.  hoircrcr,  that  all 
the  public  schools  throughout  the  state  shall  hold  sessions  in  the 
forenoon  of  that  day  in  order  to  allow  the  customary  exercises 
in  memory  of  Lincoln;  and  provided  further,  that  when  Febru- 
ary 12th  falls  on  Sunday,  then  Monday  following  shall  be  a 
legal  holiday  and  shall  be  so  observed  ;  and  provided  still  further, 
that  when  February  12th  falls  on  Saturday  such  exercises  in 
the  public  schools  shall  take  place  on  tlie  Friday  afternoon  pre- 
ceding. 


HOSPITALS. 

An  act  to  promote  the  public  welfare,  by  providing  for  the 
conveyance,  holding  and  protection  of  property,  and  the 
creation  of  trusts  for  the  founding,  endowment,  erection 
and  maintenance  within  this  state  of  hospitals  for  the  relief 
of  the  sick  and  for  training  schools  for  nurses. 

Approvr.l   February   111.    I'.ioT:   slats.    i;u)7,   p.    10. 

'J'he  people  of  the  State  of  California,  represented  in  senate  and 
assembhj.  do  enact  as  folloivs: 

Construction  of  act. 

Section  1.  The  provisions  of  this  act  shall  be  liberally  con- 
strued with  a  view  to  eflFect  its  ob.iects  and  promote  its  purposes; 
and  in  the  construction  thereof,  the  singular  number  shall  be 
deemed  to  include  the  plural,  and  the  plural  shall  lie  deemed  to 
include  the  singular  number,  and  the  masculine  gender  shall  be 
deemed  to  include  the  feminine. 


592  STATUTES    AT   LAROE. 

Manner  of  endowment  of  hospitals. 

Sec.  2.  Auy  person  desiring  in  his  lifetime  to  promote  the 
public  welfare  by  founding,  endowing  and  having  maintained 
within  this  state  a  hospital  for  the  relief  of  the  sick,  and  as 
a  training  school  for  nurses,  may  to  that  end  and  for  such  pur- 
pose, by  grant  in  writing,  convey  to  a  trustee  or  any  number  of 
trustees  named  in  such  grant,  and  to  their  successors,  any  prop- 
erty, real  or  personal,  belonging  to  such  person,  and  situated  or 
being  within  this  state ;  provided,  that  if  any  such  person  be 
married  and  the  property  be  community  property,  then  both 
husband  and  wife  must  join  in  such  grant. 

Designation  of  scope  of  institution. 

Sko.  S.  The  person  making  such  grant  may  therein  desig- 
nate: 

1.  The  nature,  object  and  purpose  of  the  hospital  and  school 
for  nurses  to  be  founded,  endowed  and  maintained. 

2.  The  name  by  which  it  shall  be  known. 

3.  The  powers  and  duties  of  the  trustees,  and  the  manner  in 
which  they  shall  account,  and  to  whom,  if  accounting  be 
required ;  but  such  powers  and  duties  shall  not  be  held  to  be 
exclusive  of  other  powers  and  duties  which  may  be  necessary  to 
enable  such  trustees  to  fully  carry  out  the  objects  of  such  grant. 

4.  The  mode  and  manner,  and  by  whom,  the  successors  of 
the  trustee  or  trustees  named  in  the  grant  are  to  be  appointed. 

5.  Such  rules  and  regulations  for  the  management  of  the  prop- 
erty conveyed  as  the  grantor  may  elect  to  prescribe  ;  but  such 
rules  shall,  unless  the  grantor  otherwise  prescribes,  be  advisory 
only,  and  shall  not  preclude  such  trustees  from  making  such 
changes  as  new  conditions  may  from  time  to  time  require. 

Powers  of  trustees. 

Sec.  4.  The  trustee  or  trustees  named  in  such  grant,  and 
their  successors  may  in  the  name  of  the  said  hospital  and  school 
for  nui'ses,  as  designated  in  such  grant,  receive  and  hold  gifts 
and  donations  of  real  and  personal  property,  sue  and  defend, 
in  relation  to  the  trust  property,  and  in  relation  to  all  matters 
affecting  the  said  hospital  and  said  school  endowed  or  established 
by  such  grant,  and  such  trustees  are  hereby  given,  and  shall 
have,  the  right  to  exercise  corporate  powers  and  privileges,  and 
to  that  end  they  may  organize  and  act  as  a  board  of  trustees, 
elect  such  officers  of  such  board  as  they  may  deem  to  be  neces- 


UOSPITALS.  503 

sary,  adopt  bj'-laws,  and  as  such  board,  and  through  the  officers 
thereof,  they  may  transact  such  business,  perform  such  acts  and 
exercise  such  powers  as  they  iu  writing  may  provide  may  be 
transacted,  performed  and  exercised  by  such  board.  Such  board 
may  adopt  and  use  a  seal  and  such  seal  wli^n  attached  to  any 
document  or  writing  shall  be  prima  facie  evidence  that  such 
document  or  writing  was  made  by  and  under  due  authority  from 
such  board  and  from  such  trustees. 

Grantor  may  exercise  powers  of  trustees. 

Sec.  5.  The  person  making  such  grant,  by  a  provision 
therein,  may  elect  in  relation  to  the  property  conveyed  and  in 
relation  to  the  erection,  maintenance  and  management  of  such 
hospital  and  school,  to  perform,  during  his  life,  all  the  duties 
and  exercise  all  the  powers  which,  by  the  terms  of  the  grant, 
are  enjoined  upon  and  vested  in  the  trustee  therein  named,  and 
in  such  case  the  powers  and  duties  conferred  and  imposed  by 
such  grant  upon  said  trustees  therein  named,  shall  be  exercised 
and  performed  by  the  person  making  such  grant  during  his  life ; 
provided,  however,  that  upon  the  death  of  .such  person  such 
powers  and  duties  shall  devolve  upon  and  shall  be  exercised  by 
the  trustees  named  iu  the  grant,  and  their  successors. 

Execution  of  grant. 

Sec.  (J.  Any  such  grant  may  be  executed,  acknowledged  and 
recorded  in  the  same  manner  as  is  now  provided  by  law  for  the 
execution,  acknowledgment  and  recording  of  grants  of  real  prop- 
erty. 

Right  of  action  to  annul  trust. 

Sec.  7.  No  suit,  action  or  iir<iir(Hliu;4'  shall  be  comnienci'd  or 
maintained  by  any  person  to  s(>t  aside,  annul  or  affect  said 
conveyance  or  to  affect  the  title  to  the  proi)erty  conveyed,  or 
(he  right  to  the  possession,  or  to  the  rents,  issues  and  profits 
lliereof,  unless  the  same  be  commenced  within  two  years  after 
the  date  of  filing  such  grant  for  record  ;  nor  shall  any  defense 
be  made  to  any  suit,  action  or  proceeding  commenced  by  the 
trustees  named  in  said  grant  or  their  successors,  privies  or  per- 
sons holding  under  them,  which  defense  involves  the  legality 
of  said  grani,  or  nfl'ects  the  title  to  the  projierty  thereby  con- 
\-eyod.  or  (lie  ri;;li(  of  possession,  or  the  rents,  issues  and  profits 
llid'euf.    unless   siii'li   defense   is   made   in    a   sui(.   adion   oi-  jiro- 


594  STATUTES    AT    LARGE. 

ceeding  commenced  within  two  years  after  such  grant  shall 
have  been  filed  for  record,  and  after  such  filing  said  property 
shall  be  exempt  from  execution  and  forced  sale. 

Time  act  shall  take  effect. 

Sec.  S.     This  act  shall  be  in  force  from  and  after  its  passage. 


HOURS  OF  LABOR. 

See,  also,  I'ol.  C.  §§  3246,  3250. 

An   act  to   provide  for   a   day  of   rest  from    labor. 

Approved  February  27,  1893;  stats.   1893,  p.   54. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assemblij,  do  enact  as  follows: 

Day  of  rest. 

.Sectiox  1.  Every  person  employed  in  any  occupadon  of 
labor  .shall  be  entitled  to  one  day's  rest  therefrom  in  seven  ;  and 
it  shall  be  unlawful  for  any  employer  of  labor  to  cause  his 
employees,  or  any  of  them  to  work  more  than  six  days  in  seven ; 
provided,  hoioever,  that  the  provisions  of  this  section  shall  not 
apply  to  any  case  of  emergency. 

Meaning  of  term. 

Sec.  2.  For  the  purposes  of  this  act,  the  term  day's  rest 
shall  moan  and  apply  to  all  cases,  whether  the  employee  is 
engaged  by  the  day,  week,  month,  or  year,  and  whether  the  work 
))i"rrornied  is  done  in  the  day  or  nighttime. 

Penalty  for  violation. 

Sec.  3.  Any  person  violating  the  provisions  of  this  act  shall 
!)(>  deemed  guilty  of  a  misdemeanor. 

Time  act  shall  take  effect. 

Sec.  4.  This  act  shall  take  effect  and  be  in  force  thirty  days 
from  and  after  its  passage. 


HOURS    OF   LABOR.  595 


An    act    to    provide   for    a    lunch    hour    for    laborers    in    sawmills, 
shakemills,  shingle-mills,  and   logging-camps. 

Approved  February  28,  1901  ;  stats.   1901,  p.  75. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Lunch  hour  for  employees. 

Section  1.  Every  person,  corporation,  co-partuersbiii,  ov 
company  operating  a  sawmill,  shakemill,  shingle-mill,  or  logging- 
camp,  in  the  State  of  California,  shall  allow  to  his  or  its  em- 
ployees, workmen,  and  laliorers  a  period  of  not  less  than  one 
hour  at  noon  for  the  midday  meal. 

Penalty  for  violation. 

Sec.  2.  Any  person,  corporation,  co-partnership,  or  company, 
his  or  its  agents,  servants,  or  managers,  violating  any  of  the 
provisions  of  this  act  shall  be  guilty  of  a  misdemeanor,  and  upon 
conviction  thereof  shall  be  punished  by  a  fine  of  not  more  than 
two  hundred  dollars  nor  less  than  one  hundred  dollars  for  each 
\iolation  of  the  provisions  of  this  act. 

Time  act  shall  take  effect. 

yE(n  3.  This  act  shall  take  elTect  and  be  in  I'orcf  on  llie  lirsl 
day  of  April,  iiiuetecn  hundred  and  one. 


An  act  to  regulate  the  work  and  hours  of  employees  engaged  in 
selling,  at  retail,  drugs  and  medicines,  and  compounding 
physicians'  prescriptions,  and  providing  a  penalty  for  the 
violation  thereof. 

Approved  February  28,  1905  ;  stats.  1905,  p.  28. 
Amended  March  15,  1907;  stats.  1907,  p.  273. 

IOd.  Note. — Tlie  amendatory  act  of  1907  added  section  5  and 
rc-enactod  sections  ],  2,  3,  and  4.  renumbering  them  2,  3,  4,  and  (i. 

The  people  of  the  State  of  California,  represented  in  senate  and 
asHcmhly,  do  enaet  as  follows: 

Title  of   amended   act. 

Skcimo.n  I.  \\\  act  enlilled  "An  act  to  regulate  the  work  and 
hours  of  enipliiyees  engaged  in  selling  n'tail  drugs  ant!  niiMlicines, 
and    compounding    physicians'    prescriptions    !in<I     iiroxidiiig    a 


596  STATUTES    AT   LARGE. 

lieualty  for  the  violation  thereof,"  approved  February  2Sth, 
1905,  is  hereby  amended  by  adding  thereto  a  new  section  to  be 
liuown  and  numbered  section  five. 

Hours  of  labor  for  drug  clerks. 

Sec.  2.  As  a  measure  for  tlie  protecliou  of  public  health,  no 
person  employed  by  any  person,  firm  or  corporation,  shall  for 
more  than  an  average  of  ten  hours  a  day  or  sixty  hours  a  week 
of  six  consecutive  calendar  days  perform  the  worli  of  selling 
drugs  or  other  medicines,  or  compounding  physicians'  prescrip- 
tions, in  any  store,  establishment  or  place  of  business,  where 
and  in  which  drugs  or  medicines  are  sold  at  retail,  and  where 
and  in  which  physicians'  prescriptions  are  compounded ;  j)ro- 
vidcd,  that  the  answering  of  and  attending  to  emergency  calls 
shall  not  be  construed  as  a  violation  of  this  act. 

More  than  ten  hours  of  labor  not  to  be  permitted. 

Sec.  3.  No  person,  firm  or  corporation  employing  another 
person  to  do  work  which  consists  wholly  or  in  part  of  selling,  at 
retail,  drugs  or  medicines,  or  of  compounding  physicians'  pre- 
scriptions, in  any  store,  or  establishment  or  place  of  business 
where  or  in  which  medicines  are  sold  and  whore  and  in  which 
physicians'  prescriptions  are  compounded  shall  re(iuire  or  permit 
said  employed  person  to  perform  such  work  for  more  than  [an] 
average  of  ten  hours  a  day,  or  sixty  hours  a  week  of  six  con- 
secutive calendar  days. 

Penalty  for  violation. 

Sec.  4.  Any  person,  firm  or  corporation  violoting  any  of  the 
provisions  of  this  act  shall  be  deemed  guilty  of  misdemeanor  and 
shall  be  punished  therefor  by  a  fine  not  less  than  twenty  dollars 
nor  more  than  fifty  dollars  or  by  imprisonment  for  not  exceeding 
sixty  days,  or  by  both  such  fine  and  imprisonnicnt,  at  the  dis- 
cretion of  the  court. 

Duty  of  labor  commissioner. 

Sec.  5.  The  commissioners  of  the  state  bureau  of  labor  sta- 
tistics are  hereby  authorized,  directed  and  empowered  to  enforce 
the  provisions  of  this  act. 

Repeal  of  conflicting  acts. 

Sec.  (J.  All  acts  or  p;iris  of  ads  iucnusishMit  with  llu>  |ii'o- 
visions  of  (his  act  arc  liercliy   repealed. 


HOURS    OF    LABOR.  597 


An    act    regulating    the    hours    of    employment    in    underground 
mines  and  in  smelting  and  reduction  works. 

Approved  March   10,    1909  ;   stats.    1909,   p.    279. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly ,  do  enact  as  follows: 

Hours  of  labor  in  underground  employment — Emergencies. 

Section  1.  That  the  period  of  employment  for  all  persons 
who  are  employed  or  engaged  in  work  in  underground  mines  in 
seai'ch  of  minerals,  whether  base  or  precious,  or  who  are  engaged 
in  such  underground  mines  for  other  purposes,  or  who  are 
employed  or  engaged  in  other  underground  workings  whether  for 
the  purpose  of  tunneling,  making  excavations  or  to  accomplish 
any  other  purpose  or  design,  or  who  are  employed  in  smelters 
and  other  institutions  for  the  reduction  or  refining  of  ores  or 
metals  shall  not  exceed  eight  hours  within  any  twenty-four 
hours,  and  the  hours  of  employment  in  such  employment  or  work 
day  shall  be  consecutive,  excluding,  however,  any  intermission  of 
time  for  lunch  or  meals ;  provided  that,  in  the  case  of  emergency 
where  life  or  property  is  in  imminent  danger,  the  period  may  be  a 
longer  time  during  the  continuance  of  the  exigency  or  emergency. 

Penalty  for  violation. 

Sec.  2.  Any  person  who  shall  violate  any  provision  of  this 
act,  and  any  person  who  as  foreman,  manager,  director  or  ofBcors 
of  a  corporation,  or  as  the  employer  or  superior  officer  of  any 
person,  shall  command,  persuade  or  allow  any  person  to  violate 
any  provision  of  this  act,  shall  be  guilty  of  a  misdemeanor  and 
upon  conviction  shall  be  punished  by  a  fine  of  not  less  than  fifty 
dollars  ($50.00)  nor  more  than  three  hundred  dollars  ($300.00), 
or  by  imprisonment  of  not  more  than  three  months.  And  the 
court  shall  have  discretion  to  impose  both  fine  and  imprisonment 
as  herein  provided. 

Repeal  of  conflicting  acts. 

Sec.  3.  All  acts  and  parts  of  acts  inconsistent  with  this  act 
are  hereby  repealed. 


598  STATUTES    AT   TABGE. 


INSURANCE. 

An  act  relating  to  life,  health,  accident,  and  annuity  or  endow- 
ment insurance  on  the  assessment  plan,  and  the  conduct  of 
the  business  of  such  insurance. 

Approved  March  19,  1891  ;  stats.  1891,  p.  126.  Codified  by  the 
legislature  of  1905  and  therefore  superseded  by  sections  4  53d  to 
•I53p  of  the  Civil  Code. 


An    act    to    provide    for    the    organization    and    management    of 
county  fire  insurance  companies. 

Approved  April  1,   1897;  stats.  1897,  p.  439. 
Amended  March  23,  1907  ;  stats.  1907,  p.  941. 
Amended  April  15,  1909;  stats.  1909,  p.  912. 

The  people  of  the  State  of  California,  represented  in  senate  and 

assembly,  do  enact  as  follows: 
Incorporation. 

Section  1.  Any  number  of  persons,  not  less  than  twenty- 
five,  residing  in  any  county  in  this  state,  owning  insurable  prop- 
erty aggregating  not  less  than  fifty  thousand  dollars  in  value, 
which  they  desire  to  have  insured,  may  incorporate  for  the  pur- 
pose of  mutual  in.surance  against  loss  or  damage  by  fire. 

Filing  of  articles  of  incorporation — Certificate. 

Sec.  2.  Such  persons  shall  file  with  the  insurance  commis- 
sioner a  declaration  of  their  intention  to  incorporate  for  the 
purposes  expressed  in  section  one  of  this  act,  which  declaration 
shall  be  signed  by  all  of  the  incorporators,  and  shall  contain  a 
copy  of  the  articles  of  incorporation  propo.sed  to  be  adopted. 
The  insurance  commissioner  shall  examine  the  proposed  articles 
of  incorporation,  and,  if  they  conform  to  this  act,  he  shall  deliver 
to  such  persons  a  certificate  permitting  them  to  incorporate  as 
such  insurance  company.  Such  certificate  shall  be  directed  to 
the  clerk  of  the  county  in  which  such  corporation  is  proposed 
to  be  organized,  and  shall  contain  a  copy  of  the  proposed  articles 
of  incorporation.  Upon  filing  with  the  secretary  of  state  the 
certified  copies  of  the  duly  executed  articles  of  incorporation,  as 
required  by  section  two  hundred  and  ninety  of  the  Civil  Code 
of  the  State  of  California,  and  of  the  certificate  above  provided 


INSURANCE.  599 

for,  the  secretary  of  state  shall  thereupon  issue  a  certificate  of 
incorporation  to  such  county  insurance  company,  and,  upon 
organizing  under  such  articles  of  incorporation,  such  county  fire 
insurance  company  may  carry  on  a  fire  insurance  business  as 
hereinafter  provided.  The  articles  of  incorporation  and  the 
charter  or  certificate  obtained  by  any  county  fire  insurance  com- 
pany operating  under  the  provisions  of  this  act  shall  be  subject 
to  the  control  and  modification  by  the  legislature  of  the  State 
of  California.  The  by-laws  and  all  amendments  thereto  shall 
be  filed  with  the  insurance  connnissioiier  witliin  sixty  ((KO  days 
after  their  adoption. 

Directors. 

Sec.  3.  The  number  of  directors  shall  not  be  less  than 
seven  (7),  nor  more  than  eleven  (11),  a  majority  of  whom  shall 
constitute  a  <iuorum  to  do  business.  These  directors  shall  be 
elected  from  the  members  of  the  association  by  ballot,  and  shall 
hold  oflSce  for  one  year,  or  until  their  successors  are  elected 
and  qualified.  The  annual  meeting  of  the  members  of  the  com- 
pany shall  be  on  the  second  Monday  in  January  of  each  year. 
In  the  election  of  the  first  board  of  directors  each  member  shall 
be  entitled  to  one  vote.  At  every  subsequent  election,  every  per- 
son insured  shall  be  entitled  to  as  many  votes  as  there  are 
directors  to  be  elected,  and  an  equal  additional  number  for 
every  risk  or  risks  he  holds  in  the  company,  and  he  may  cast 
the  same  in  person  or  by  proxy,  distributing  them  among  the 
directors  to  be  elected,  or  among  a  less  number  of  directors,  or 
cumulating  them  upon  one  candidate,  as  he  shall  see  fit. 

Officers. 

Sec.  4.  The  directors  shall  elect,  from  their  own  number,  a 
president  and  a  vice-president,  and  shall  also  elect  a  treasurer 
and  a  secretary,  who  may  or  may  not  be  members  of  the  com- 
pany. All  of  such  oflScers  hold  their  office  for  one  year  from 
the  date  of  their  election,  and  until  their  successors  are  elected 
and  qualified. 

Bonds. 

Sec.  5.  The  treasurer  and  secretary  shall  give  bonds  to  the 
company  for  the  faithful  performance  of  their  duties,  in  such 
amounts  as  shall  be  prescribed  by  the  board  of  directors. 


600  STATUTES    AT    LARGE. 

Powers — By-laws. 

Sec.  r».  Such  corporation  and  its  directors  shall  possess  the 
usual  powers,  and  be  subject  to  the  usual  duties  of  corporations 
and  directors  thereof,  and  may  make  such  by-laws,  not  incon- 
sistent with  the  constitution  and  the  laws  of  this  state,  as  may 
be  deemed  necessary  for  the  management  of  its  affairs,  in  accord- 
ance with  the  provisions  of  this  act.  Also  to  prescribe  the 
duties  of  its  officers  and  to  fix  their  compensation,  and  to  alter 
and  amend  its  by-laws,  when  necessary. 

Membership. 

Sec.  7.  Any  person  owning  property  in  the  county  for  which 
anj'  such  company  is  formed  or  any  person  owning  property 
in  any  county  adjoining  the  county  wherein  such  company  is 
formed  as  hereinafter  provided  may  become  a  member  of  such 
company  by  insuring  therein,  and  shall  be  entitled  to  all  the 
rights  and  privileges  appertaining  thereto ;  and  no  person  not 
residing  in  the  county  in  which  the  company  is  formed  shall  be- 
come a  director  of  such  company.  [Section  7  amended  March 
23,  1907.] 

Risks. 

Sec.  8.  Such  company  may  issue  policies  only  on  detached 
dwellings,  schoolhouses,  churches,  barns  (except  livery  barns 
and  hotel  barns),  and  other  farm  buildings,  and  such  property 
as  may  be  contained  therein ;  also,  other  property  on  the 
premises  owned  by  the  insured  ;  hay  and  grain  in  stack  or  in 
the  field,  and  live  stock  on  the  premises  of  the  insured,  any- 
where in  the  county,  for  any  time  not  exceeding  five  years,  and 
not  to  extend  beyond  the  time  limited  for  the  existence  of  the 
charter,  and  for  an  amount  not  to  exceed  four  thousand  five 
hundred  dollars  on  any  one  risk ;  provided,  that  no  company 
which  has  been  organized  more  than  six  months  shall  write 
insurance  subject  to  one  fire  exceeding  three  per  cent  of  the 
amount  at  risk  upon  the  books  of  such  company.  All  persons 
so  insured  shall  give  their  obligation  to  the  company,  binding 
themselves,  their  heirs  and  assigns,  to  pay  their  pro  rata  share 
to  the  company  of  the  necessary  expense  and  of  loss  by  fire 
which  may  be  sustained  by  any  member  thereof  during  the 
time  for  which  their  respective  policies  are  written,  and  they 
shall  also  at  the  time  of  effecting  the  insurance  pay  such  a 
percentage  in  cash,  and  such  other  charges,  as  may  be  required 
by  the  rules  or  by-laws  of  the  company. 


INSTTRANCE.  001 

Classifying  risks. 

Sec.  9.  All  such  companies  must  classify  the  property 
insured  therein  at  the  time  of  issuing  i)olicies  thereon  under 
different  rates,  corresponding  as  nearly  as  may  be  to  the  greater 
or  less  risk  from  fire  loss  which  may  be  attached  to  the  several 
kinds  of  property  insured. 

Limitations  upon  risks  taken. 

Sec.  10.  No  such  company  shall  insure  any  property  beyond 
the  limits  of  the  county  wherein  the  said  company  is  organized 
except  that  a  company  may  insure  in  any  county  next  adjoining 
the  county  wherein  such  company  is  organized  where  no  mutual 
company  exists  or  is  organized  therein,  and  as  soon  as  a  mutual 
comi)any  shall  be  organized  therein  said  company  first  insuring 
and  with  its  original  place  of  business  in  the  adjoirfing  county, 
shall  as  soon  as  its  policies  originally  issued  expire,  or  shall  be 
canceled,  retire  therefi-om.  Nor  shall  any  company  issue  policies 
of  insurance  on  any  property  within  the  limits  of  any  city  con- 
taining over  six  thousand  inhabitants  at  the  time  of  the  organ- 
ization of  such  company ;  provided,  that  no  dwelling  shall  be 
insured  within  the  corporate  limits  of  any  city  or  town  exposed 
by  any  other  building  within  one  hundred  feet,  or  by  any  other 
risk  (other.than  a  dwelling  or  private  barn,  the  property  of  the 
same  insured)  within  two  hundred  feet  of  the  risk  assumed; 
provided,  that  the  amount  of  insurance  shall  not  exceed  seventy- 
five  per  cent  of  the  value  of  the  property,  and  that  no  additional 
insurance  shall  be  allowed.  [Section  amended  April  15,  1009; 
in  effect  in  sixty  days.] 

Adjustment  of  losses — Arbitration. 

Sec.  11.  Pjvery  member  of  such  company  who  may  sustain 
loss  or  damage  by  fire  shall  immediately  notify  the  president, 
or  in  his  absence,  the  secretary  thereof,  stating  the  amount  of 
damage  or  loss  sustained  or  claimed,  and  if  not  more  than  fifteen 
hundred  dollars,  then  the  president  and  secretary  shall  proceed 
to  ascertain  the  amount  of  such  loss  or  damage  and  adjust  the 
same.  If  the  claim  for  damage  or  loss  be  for  an  amount  greater 
than  fifteen  hundred  dollars,  then  the  president  of  such  com- 
pany, or  in  his  absence,  the  vice-president,  or  in  the  absence  of 
both,  the  secretary  thereof,  shall  forthwith  convene  the  l)oard 
of  directors  of  such  company,  whose  duty  it  shall  be  when  con- 
vened,   to    appoint    a    committee,    of   not   less    than    three    disiu- 

26— CL 


602  STATUTES    AT   LARGE. 

terested  members  of  said  company,  to  ascertain  the  amount  of 
such  damage  or  loss.  If  in  either  case  there  is  a  failui-e  of  the 
parties  to  agree  upon  the  amount  of  such  damage  or  loss  they 
may  submit  the  question  of  the  amount  of  such  loss  to  arbitra- 
tion, and  in  that  event  the  president  of  the  company  shall 
appoint  one  disinterested  person  to  act  as  an  arbitrator,  and  the 
claimant  or  insured  shall  appoint  another,  and  if  such  two 
arbitrators  fail  to  agree  upon  the  amount  of  such  loss,  then  they 
shall  select  a  third  disinterested  person  to  act  with  them,  and 
such  arbitrators  so  appointed  shall  have  full  authority  to 
examine  witnesses  and  to  do  all  other  things  necessai-y  to  the 
proper  determination  of  the  amount  of  loss  sustained  by  the 
claimant,  and  shall  make  their  award  in  writing  to  the  presi- 
dent of  the  company,  and  to  the  insured,  and  such  award  so  as 
aforesaid  made,  shall  be  final  as  to  the  amount  of  the  loss  sus- 
tained. The  pay  of  said  committee  shall  be  three  dollars  per 
day  for  each  day's  services  so  rendered,  and  five  cents  for  each 
mile  necessarily  traveled  in  the  discharge  of  their  duties,  which 
shall  be  paid  by  the  claimant  unless  the  award  of  such  com- 
mittee shall  exceed  the  .sum  offered  by  the  company  in  liquida- 
tion of  such  loss  or  damage,  in  which  case  such  expense  shall  b(: 
paid  by  the  company.  [Section  11  amended  April  15,  1'909;  in 
effect  in  sixty  days.] 

Assessments  for  deficiency. 

Sec.  12.  When  the  amount  of  any  loss  shall  have  been  ascer- 
tained, which  exceeds  in  amount  the  cash  funds  of  fhe  company, 
the  president  shall  convene  the  directors  of  said  company,  who 
shall  make  an  assessment  upon  all  the  property  to  the  amount 
for  which  each  several  piece  of  property  is  insured,  taken  in  con- 
nection with  the  rate  of  premium  under  which  it  may  be  classi- 
fied ;  provided  further,  that  the  board  of  directors  may  at  their 
annual  meeting  levy  an  assessment  not  to  exceed  twenty-five 
cents  on  the  one  hundred  dollars  on  first-class  insurance  and  a 
pro  rata  amount  on  other  classes  and  said  sum  so  raised  shall 
constitute  a  reserve  fund  to  be  used  in  emergency  cases  only  and 
another  assessment  for  this  fund  shall  not  be  made  while  this 
reserve  remains  int<act.     [Section  12  amended  March  23,  1907. J 

Notice  of  assessments. 

Sec.  13.  It  shall  be  the  duty  of  the  secretary,  whenever  such 
an  assessment  shall  have  been  made,  to  immediately  notify  every 
jierson  holding  a  risk  in  such  company,  personally,  by  an  agent, 


INSURANCE.  603 

or  by  letter  directed  to  his  usual  post  office  address,  of  the 
amount  of  such  loss,  and  the  sum  due  from  him,  as  his  share 
thereof,  and  of  the  time  and  to  whom  such  payment  is  to  be 
made ;  but  such  time  shall  not  be  less  than  thirty  days,  nor  more 
than  ninety  days  from  the  date  of  such  notice. 

Action  for  neglect  or  refusal  to  pay  assessment. 

Sec.  14.  An  action  may  be  brought  against  any  member  of 
such  company  who  shall  neglect  or  refuse  to  pay  any  assessment 
made  upon  him  by  the  provisions  of  this  act,  or  other  liabilities 
due  the  company,  and  the  directors  of  any  company  so  formed 
who  shall  willfully  refuse  or  neglect  to  perform  the  duties 
imposed  upon  them  by  law  or  by  the  by-laws  of  the  company 
shall  be  liable  in  their  individual  capacity  to  the  person  sustain- 
ing such  loss.  An  action  may  also  be  brought  and  maintained 
against  any  such  company  by  members  thereof  for  losses  sus- 
tained if  payment  is  withheld  after  the  amount  of  such  losses 
have  been  determined,  and  is  due  by  the  terms  of  the  policy. 

Annual  statement. 

Sec.  15.  It  shall  be  the  duty  of  the  secretary  to  prepare  an 
annual  statement  showing  the  condition  of  such  company  on  tlic 
thirty-first  day  of  December,  and  present  the  same  at  the  anini.il 
meeting. 

Withdrawal. 

Sec.  10.  Any  mc^mber  of  such  company  may  withdraw  there- 
from by  surrendering  his  policy  for  cancellation  at  any  time 
while  the  organization  continues  the  business  for  which  it  was 
organized,  by  giving  notice  in  writing  to  the  secretary  thereof, 
and  paying  his  share  of  all  claims  that  may  exist  against  such 
company ;  provided,  that  the  company  shall  have  power  to  cancel 
or  terminate  any  policy  by  giving  the  insured  five  days'  written 
notice  to  that  effect,  and  returning  to  him  any  excess  of  pre- 
mium he  may  have  paid  during  the  term  of  the  policy,  over  tin- 
cost  of  his  insurance,  as  measured  by  the  rates  of  standard  fire 
insurance  companies  doing  business  in  fliis  state. 

Report  of  officers. 

Sec.  17.     It  shall  be  the  duty  of  the  president  and  secretary, 

within  thirty  days  after  the  first  day  of  January  in  each  year,  to 

.   prepare,  under  their  own  oath,  and  transmit  to  the  insurance 

commissioner,  a  statement  of  the  condition  of  the  company  on 

the  last  day  of  the  month  next  preceding  the  annual  meeting. 


(•04  STATUTES    AT   LARCiE. 

If.  upon  examination,  tlie  insiu'ance  commissioner  finds  that  sucli 
company  is  doing  business  correctly,  in  accordance  with  the  pro- 
visions of  tliis  act,  he  sliall  thereupon  furnisli  tlie  company  his 
certificate,  which  shall  be  deemed  authority  to  continue  business 
during  the  ensuing  year,  subject,  however,  to  the  provisions  of 
this  act.  For  such  examination  and  certificate  the  company  shall 
pay  one  dollar.  Each  company  shall  pay.  at  the  time  of  organi- 
zation, five  dollars  to  the  insurance  commissioner,  for  all  services 
which  he  shall  rcndei-  in  the  matter  of  organization. 

Dissolution. 

Skc.  is.  Any  such  company  may  be  iirocccded  agninst  and 
dissolved  in  the  manner  and  ui)on  the  same  conditions  as  provided 
in  case  of  otluM'  insurance  c<)mi)anies  incorporated  in  this  state. 

Conflicting  laws  repealed. 

Sec.  1'.).  All  acts  and  imits  of  acts  in  conflict  with  this  act 
are  hereby  repealed. 


An  act  providing  for  the  organization  and  management  of  mutual 
fire  insurance  companies. 

Approved  March    11),    lilOT  ;    stats.    liiOT,   p.    631. 

'I'hr  projijc  of  the  Stdtc  <if  Cdlifornia,  represented  in  senate  and 
nsseiiihl}/,  (to  enact  as  follows: 

Mutual  fire  insurance  companies. 

Section  1.  I'rivate  corporations  may  be  formed  for  the  pur- 
l)0se  of  insuring  the  property  of  their  members  in  accordance 
with  and  on  the  properties  designated  in  this  act,  and  not  other- 
wise. Such  corporations  may  be  formed  and  organized  as  pro- 
vided in  part  four,  division  first,  of  the  Civil  Code  of  the  State 
of  California. 

Lines  of  insurance. 

Sec.  2.  Any  such  cori)oration  may  be  formed  for  the  purpose 
of  transacting  fire  insurance  business  and  in  one  of  the  following 
lines,  to  wit : 

1.  Lumber  yards,  factories  and  mills. 

2.  Mercantile  risks,  dwelling  houses,  churches,  schools  and 
farm  buildings,  and  contents. 


INJ^tlKANCK.  605 

Liability  of  members. 

Sec.  3.  Bach  person  or  corporation  accepting  a  policy  in  any 
such  mutual  insurance  corporation  shall  thereby  become  a  mem- 
ber of  such  corporation  and  shall  be  liable  for  his  pro  rata  share 
of  losses  and  operating  expenses,  except  as  hereinafter  provided. 

Minimum  business  required. 

Sec.  4.  No  policy  shall  be  issued  by  such  corporation  until 
not  less  than  two  hundred  thousand  dollars  of  insurance,  in  not 
less  than  two  hundred  separate  risks,  have  been  subscribed  for 
and  entered  on  its  books,  and  until  it  shall  have  a  cash  reserve 
fund  of  fifty  thousand  dollars.  No  officer  or  other  person  whose 
duty  it  is  to  determine  the  character  of  risks,  and  upon  whose 
decision  the  application  shall  be  accepted  or  rejected  by  such 
corporation,  shall  receive  as  any  part  of  his  compensation  a 
commission  upon  the  premiums,  but  his  compensation  shall  be  a 
fixed  salary  and  such  share  of  the  net  profits  as  the  directors 
may  determine. 

Notice  of  meeting. 

Sec.  5.  Every  member  shall  be  notified  of  the  time  and  place 
of  holding  its  meeting  by  a  written  notice,  or  by  an  imiwint  upon 
the  back  of  each  policy  receipt  or  certificate  of  renewal,  and  shall 
be  entitled  to  a  vote  as  provided  by  law. 

Amount  of  risl<  permitted  on  each  policy. 

Sec.  G.  Such  company  may  issue  policies  provided  the  term 
of  any  policy  does  not  exceed  the  time  limited  for  the  existence 
of  the  charter  but  not  for  an  amount  in  excess  of  twenty-five 
hundred  dollars  on  any  one  risk  ;  provided,  however,  that  one 
thousand  dollars  additional  insurance  may  be  written  on  any  one 
risk  for  each  million  dollars  of  total  insurance  outstanding  on 
the  books  of  the  company  iu  excess  of  one  million  dollai-s ;  pro- 
vided further,  that  two  or  more  buildings  situated  in  the  same 
city  block,  or  separated  by  less  than  one  hundred  feet,  shall  be 
deemed  to  be  one  risk. 

How  mutual  company  may  procure  license. 

Sec.  7.  When  any  number  of  citizens  or  corporations  not  less 
than  one  hundred  owning  insurable  property  in  this  s'tate  desire 
to  insure  in  a  mutual  company  incorporated  under  the  laws  of 
some  other  state,  they  shall  petition  the  insurance  commissioner 
to  grant  such  company  a  license  to  transact  business  in  this 
state.     Such  corpoi-ation  before  being  licensed  iu  this  state  must 


606  STATUTES    AT   LARGE. 

file  with  the  insurnuco  commissioner  its  Inst  annuiil  statement 
signed  by  its  president  and  secretary  under  oath,  sliowing  that 
the  company  is,  solvent  and  possessed  of  not  less  than  two 
lumdred  thousand  dollars  bona  fide  premium  notes  or  contingent 
liabilities  of  its  members,  and  not  less  than  seventy-five  thousand 
dollars  available  cash  assets  over  and  above  all  liabilities  or 
losses  reported,  expenses,  taxes  and  reinsurance  on  all  outstand- 
ing risks  estima,ted  at  fifty  ])er  cent  of  the  premiums  received 
and  receivable  on  all  risks.  Such  company  nuist  also  file  a  co])y 
of  its  articles  of  incorporation  and  a  certificate  from  the  insur- 
ance commissioner  of  the  state  in  which  such  company  is  incor- 
porated, in  which  certificate  the  insurance  commissioner  must 
certify  that  such  company's  annual  statement  is  correct.  Any 
mutual  insurance  company  incorporated  under  the  laws  of  any 
other  state,  after  complying  with  the  provisions  of  this  section 
shall  be  granted  a  license  by  the  insurance  commissioner  of  this 
state,  granting  such  company  full  powci-  to  transact  I)usiness 
under  this  act. 

Assessments  for  losses. 

Sec.  S.  Each  policyholder  shall  be  liable  to  pay  his  propor- 
tionate part  of  any  assessment  which  may  be  levied  ])y  the  com- 
pany, in  accordance  with  the  law  and  his  contract,  on  account 
of  losses  and  expenses  incurred  while  he  is  a  member.  Mutiiiil 
insurance  companies  shall  cliarge  and  collect  upon  its  policies  the 
full  premium  in  cash  or  notes,  absolutely  payable,  and  may,  in 
its  by-laws,  fix  tlie  liability  of  its  members  for  the  payment  of 
the  losses  and  expenses  not  provided  for  by  its  cash  funds ; 
provided,  that  the  liability  of  a  member  shall  not  be  less  than  a 
sum  equal  to  the  cash  i)remlum  written  in  his  policy.  The  total 
amoimt  of  the  liability  of  a  policyholder  shall  l>e  plainly  and 
legibly  stated  upon  the  back  of  each  policy. 

Same — Record  for  assessment. 

Sec.  9.  Whenever  such  company  is  not  possessed  of  cash 
funds  above  its  permanent  cash  reserve  fund  hereinafter  pro- 
vided, sufficient  for  the  payment  of  accrued  losses  and  expenses, 
it  shall  make  an  assessment  for  the  amount  needed  to  pay  such 
losses  and  expenses,  upon  its  members  liable  to  assessment  there- 
for, in  proportion  to  their  several  liabilities.  The  company  shall 
cause  to  be  recorded  in  a  book  kept  for  that  purpose,  the  order 
for  such  assessment,  together  with  a  statement  which  shall  set 
forth  the  condition  of  the  company  at  the  date  of  the  order,  the 


INSrRANCE.  GOT 

;iiiiuuiit  of  its  cash  assets  and  of  its  prcininMi  nolcs.  or  olhci- 
contingent  fnnds  liable  to  assessment  and  the  amount  the  assess- 
ment calls  foi*.  yuch  record  shall  be  made  and  signed  by  the 
directors  who  voted  for  the  order,  before  any  part  of  the  assess- 
ment is  collected,  and  any  person  liable  to  assessment  may 
inspect  and  take  a  copy  of  the  same. 

Withdrawal  of  members. 

Sk(".  10.  Any  member  of  any  sucli  coritora  lion  nia.s'  w  il  lidniw 
at  any  time  by  surrendering  his  policy  or  certilicalc  of  insnranci> 
to  the  cori)oration,  and  giving  thirty  days"  written  iinijcr  of  lijs 
intention  to  withdraw  and  by  paying  his  share  of  all  losses  whicli 
shall  have  accrued  by  the  end  of  the  time  specified  in  the  notice, 
and  all  assessments  due,  accrued,  or  pending,  at  the  time  of  his 
withdrawal,  but  the  company  may  retain  the  rate  usually 
charged  by  standard  insurance  companies  for  a  short-term 
policy  ;  provided,  also,  that  the  corporation  shall  have  power  to 
cancel  or  determine  any  policy  by  giving  the  insured  five  days' 
written  notice  to  that  effect,  and  returning  to  the  insured  his 
pro  rata  of  the  unearned  premium. 

Dividends. 

Sec.  11.  No  mutual  fire  insurance  corporation  formed  under 
this  act  may  make  any  dividend  except  from  profits  in  hi\nd 
after  retaining  unimpaired — 

1.  The  sum  of  fifty  thousand  dollars. 

2.  A  fund  equal  to  one  half  the  amount  of  all  premiums  on 
risks  not  terminated  at  the  time  of  making  such  dividend. 

3.  A  sufficient  sum  to  pay  all  losses  reported,  or  in  course  of 
settlement,  and  all  liabilities  for  expenses  and  taxes. 

Construction  of  act. 

Sec.  12.  Nothing  in  this  act  shall  be  construed  to  restrict 
or  affect  the  provisions  of  "An  act  to  provide  for  the  organiza- 
tion and  management  of  county  fire  insurance  companies," 
approved  Ajiril  1st,  1897. 

General  provisions. 

Sec.  13.     The   general    provisions    applicable   to   all    corpora- 
tions as  expressed  in  part  four  of  division  first  of  the  Civil  Code 
of  the  State  of  California,  also  all  provisions  of  the  Political  ■ 
Code  so  far  as  compatible  with  the  provisions  of  this  act,  are 
hereby  made  applicable  to  corporations  provided  for  by  this  act. 


608  STATUTES    AT    LAROE. 


An  act  relating  to  life,  healtli  and  accident  insurance  of  live 
stock  on  the  assessment  plan  and  the  conduct  of  the  business 
of  such  insurance. 

Approved  March   23,   1907  ;   stats.    1907,   p.    952. 

'J'hc  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Contract  of  mutual   insurance  of  animals  clefined. 

Section  1.  EA'ery  contract  whereby  a  benefit  may  accrue 
(o  a  party  or  parties  therein  named  upon  the  death  or  physical 
disability  of  an  animal  insured  thereunder,  or  for  the  payment 
of  any  sums  of  money  dependent  in  any  degree  upon  the  collec- 
tion of  assessments  or  dues  from  owners  holding  similar  con- 
tracts, shall  be  deemed  a  contract  of  mutual  insurance  upon  the 
assessment  plan.  Such  contracts  must  show  that  the  liabilities 
of  the  insured  thereunder  are  not  limited  to  fixed  premiums. 

How  corporations  may  be  formed — Investments — Condition  prec- 
edent to  issuing  insurance. 
Sec.  2.  Corporations  may  be  formed  under  the  general  laws 
of  this  state  to  carry  on  the  business  of  mutual  live  stock  insur- 
ance upon  the  assessment  plan,  and  shall  be  subject  only  to  the 
provisions  of  this  act.  No  such  corporation  shall  issue  con- 
tracts of  insurance  until  at  least  two  hundred  (200)  persons 
owning  live  stock  have  applied,  in  writing,  for  membership  or 
insurance  therein,  and  have  paid  to  the  treasurer  of  such  cor- 
poration the  sum  of  five  thousand  (5000)  dollars.  This  sum 
shall  be  invested  in  bonds  or  securities,  approved  by  the  insur- 
ance commissioner  of  this  state,  or  deposited  in  some  bank  in 
this  state  where  it  will  earn  interest.  Said  bonds  or  securities, 
or  evidences  of  such  deposit,  shall  be  placed,  through  the  insur- 
ance commissioner  of  this  state,  with  the  state  treasurer,  and  the 
principal  sum  shall  be  held  in  trust  for  the  contract  holders  of 
such  corporation,  with  the  right  in  the  corporation  to  exchange 
said  bonds,  securities,  or  evidence  of  bank  deposit  for  others 
of  like  value.  Such  corporation  shall  also,  as  a  condition  prece- 
dent to  issuing  any  contracts  of  insurance,  obtain  the  written 
certificate  of  the  insurance  commissioner  that  it  has  complied 
with  the  requirements  of  this  act;  and  that  the  name  of  the  cor- 
l)Oration  is  not  the  same  as  that  of  any  other  corporation  of  this 
or  other  states,  as  indicated  by  the  insurance  department  reports 


INSURANCE.  609 

iu  his  office  ;  uor  shall  the  commissioner  approve  any  name  or 
title  so  closely  resembling  another  as  to  mislead  the  public.  No 
corporation  formed  hereunder  shall  have  legal  existence  after 
one  year  from  the  date  of  its  articles,  unless  its  organization  has 
been  completed,  and  business  commenced  ;  nor  shall  any  corpora- 
tion or  individual  solicit,  or  cause  to  be  solicited,  any  business, 
until  such  corporation  shall  have  complied  with  the  provisions  of 
section  six  hundred  and  thirty-three  of  the  Political  Code  of 
this  state. 

What  contracts  of  insurance  shall  specify. 

Sec.  3.  The  contracts  of  insurance  issued  by  such  corporation 
shall  specify  the  sum  or  sums  to  be  paid  upon  the  happening 
of  the  contingency  insured  agaimst,  and  when  such  payments 
will  be  made.  Unless  the  contract  shall  have  been  invalidated 
by  fraud  or  by  breach  of  its  conditions,  the  corporation  shall  be 
obligated  to  pay  the  beneficiary  the  amount  or  amounts  specified 
in  its  contract  at  the  time  or  times  therein  named,  and  such 
indebtedness  shall  be  a  lien  upon  all  the  property  of  such  cor- 
poration, with  priority  over  all  indebtedness  thereafter  incurred, 
except  as  hereinafter  provided  in  case  of  insolvency.  Failure  to 
make  such  payment  within  thirty  days  after  notice,  at  the  home 
office,  by  mail,  as  provided  by  law,  of  final  judgment,  unless 
waiver  is  made  by  the  beneficiary,  shall  constitute  a  forfeiture 
of  the  right  to  do  business. 

Reserve  fund  required. 

Skc.  4.  Every  domestic  corporation  organized  or  doing  busi- 
ness under  this  act  shall  accumulate  a  reserve  or  emergency 
fund,  which  shall  at  all  times  be  not  less  than  the  largest  benefit 
contracted  to  be  paid  by  it  to  any  one  person.  Every  existing 
domestic  corporation  must  accumulate  such  fund  within  one 
year  from  the  date  when  this  act  takes  effect,  and  any  corpora- 
tion organized  hereunder  within  one  year  from  the  date  of  its 
certificate  of  incorporation.  Such  fund,  to  the  extent  of  the 
largest  amount  contracted  to  be  paid  by  any  such  corporation  to 
any  one  person,  shall  be  so  invested  and  deposited,  as  provided 
in  section  two  hereof,  with  the  right  in  the  corporation  to 
exchange  any  such  securities  for  others  of  equal  value.  The 
deposit  required  by  section  two  of  this  act  shall  constitute  a 
I)art  of  the  reserve  required  by  this  section,  at  the  option  of  such 
corporal  ion.      When   any   oorporntion    doing    business   hereunder 


610  STATTJTES    AT   LARGE. 

shall  (lisfoiiliniic  business.  Iliis  fund  sli.-ill  Ix'  retui'iicd  l<t  sucli 
corporation,  or  so  disposed  of  as  nia.\'  lie  determined  hy  the 
superior  court  of  the  county,  or  city  and  county,  in  which  is  its 
principal  place  of  business. 

Foreign   corporations,   conditions  required. 

Sec.  5.  Corporations  oriianized  under  the  laws  of  any  other 
state  or  country  to  transact  the  business  of  mutual  assessment  or 
live  stock  insiirauce,  must,  as  a  condition  precedent  to  transact- 
ing business  in  this  state,  deposit  with  the  insurance  commis- 
sioner of  this  state  a  certified  copy  of  its  charter,  or  other 
instrument,  required  by  its  home  authorities;  a  statement,  under 
oath,  of  its  president  or  secretary,  of  its  business  for  the  pre- 
ceding year,  in  such  form  as  may  be  required  by  the  insuraiice 
commissioner  of  this  state  :  an  appointment  of  a  general  agent, 
service  upon  whom  shall  bind  the  corporation  :  a  certificate  that 
for  the  next  preceding  twelve  months  it  has  paid,  in  full,  the 
maximum  amount  named  in  its  contracts  of  insurance ;  a  cer- 
tificate from  the  proper  officer  of  its  state  or  government  that 
like  corporations  of  this  state  are  legally  entitled  to  do  business 
in  such  state  or  country  ;  copies  of  its  contracts  of  insurance 
and  applications,  which  must  show  that  the  liabilities  of  its 
members  are  not  limited  to  fixed  premiums  ;  and  evidence,  satis- 
factory to  the  insurance  commissioner,  that  the  corporation  has 
accumulated  a  fund  equal  to  that  required  of  like  corporations 
in  this  state,  constituting  a  reserve  or  surplus  fund,  held  in  trust 
for  the  benefit  of  its  contract  holders,  and  so  invested  and  held 
as  required  by  the  laws  of  the  state  or  government  under  which 
such  corporation  was  organized.  The  insurance  commissioner 
shall  thereupon  issue  a  license  to  such  corporation  to  do  business 
in  this  state.  This  license  must  be  renewed  annually,  and  may 
be  revoked  whenever  it  is  ascertained  that  the  statements 
required  to  be  made  by  this  section  are  not  true.  Upon  such 
revocation,  notice  thereof  shall  be  given  by  the  insurance  com- 
missioner, by  publication  in  some  newspaper  published  in  the 
city  and  county  of  San  Francisco,  for  two  weeks,  daily,  and  no 
new  contracts  shall  be  made  by  such  company  in  this  state. 
When  any  other  state  or  country  imposes  any  additional  license, 
fees,  taxes,  or  penalties  upon  any  corporation  organized  or  doing 
business  under  this  act,  like  license,  fees,  taxes,  or  penalties 
shall  be  imposed  upon  corporations  of  the  same  kind,  and  their 
agents,  of  such  state  or  country  doing  business  in  this  state. 


INSX'RANCE.  <^>11 

Limitations  of  contracts — Applications  for  insurance — ^Penalty 
for  false  statements. 
Sec.  ().  No  t-orporation  doinj;'  busiucsis  under  this  act  (except 
accident  or  casualty  corporations)  shall  issue  a  contract  of 
insui-ance  upon  the  life  of  any  animal,  after  it  has  passed  its 
fifteenth  birthday.  Every  such  contract  of  insurance  shall  be 
founded  upon  written  application  therefor,  and  (except  when 
the  application  is  for  health,  accident,  or  casualty  insurance 
only,  or  for  one  hundred  dollars  life  insurance,  or  less)  such 
application  shall  be  accompanied  by  the  report  of  a  reputable 
veterinarian,  containing  a  detailed  statement  of  his  examination 
of  the  animal,  and  showing  the  animal  to  be  in  good  health,  and 
recommending  the  issuance  of  a  contract  of  insurance.  Any 
solicitor,  agent,  employee,  examining  veterinarian,  or  other  per- 
.son  making  a  false  or  fraudulent  statement  to  any  corporation 
doing  business  under  this  act,  with  reference  to  any  application 
for  insurance,  or  for  the  purpose  of  obtaining  any  money  or 
benefit  from  such  corporation,  shall  be  guilty  of  a  misdemeanor, 
and  upon  conviction  shall  be  punished  by  a  fine  of  not  less  than 
one  hundred  dollars  nor  more  than  five  hundred  dollars,  or  by 
imprisonment  in  the  county  jail  for  not  less  than  thirty  days  nor 
more  than  one  year,  or  by  both  such  fine  and  imprisonment,  in 
the  discretion  of  the  court ;  and  any  person  who  shall  make  a 
false  statement  of  any  material  fact  or  thing  in  a  sworn  state- 
ment as  to  the  death  or  disability  of  an  animal  of  the  contract 
holder  in  any  such  corporation,  for  the  purpose  of  procuring  or 
aiding  the  beneficiary  or  beneficiaries,  or  contract  holder,  in  pro- 
curing the  payment  of  a  benefit  named  in  the  contract,  shall  be 
guilty  of  perjury,  and  may  be  proceeded  against  and  punished  as 
provided  by  the  statutes  of  this  state  in  relation  to  the  crime  of 
perjury. 

Benefits   not   liable  to  attachment. 

Sec.  T.  The  money,  benefit,  annuities,  endowment,  charity, 
relief,  or  aid  to  be  paid  as  provided  by  the  contracts  issued  by 
any  corporation  doing  business  under  this  act,  shall  not  be  liable 
to  attachment  or  other  process,  and  shall  not  be  seized,  taken, 
appropriated,  or  applied  by  any  legal  or  (Mpiitable  process,  nor 
by  operation  of  law,  io  pay  any  debts  or  liability  of  the  contract 
holder,  or  any  beneficiary  named  thereunder. 


612  STATUTES    AT   LARGE. 

Annual  statement  to  be  filed. 

Sec.  S.  Every  domestic  uud  foreign  corporation  doing  busi- 
ness under  this  act,  shall  annually,  on  or  before  the  first  day  of 
February,  file  with  the  insurance  commissioner,  in  such  form  as 
he  shall  prescribe,  a  statement  of  its  affairs  for  the  year  ending 
on  the  preceding  thirty-first  day  of  December.  The  insurance 
commissioner,  in  person  or  by  duly  authorized  deputy,  shall  have 
the  power  of  examination  into  the  affairs  of  any  domestic  cor- 
poration doing  business  or  claiming  to  do  business  under  this  act, 
at  any  time,  in  his  discretion,  and  shall  make  such  examination 
at  least  once  a  year. 

When  corporation  may  have  license  revoked. 

Sec.  9.  If  the  insurauce  commissioner,  after  examination  ol* 
the  affairs  of  a  corporation,  shall  find  that  such  corporation  is 
not  doing  its  business  in  conformity  to  this  act,  or  that  it  is 
doing  a  fraudulent  or  unlawful  business,  or  that  it  is  not  carry- 
ing out  its  terms  of  contract,  or  that  it  can  not  within  three 
months  from  the  date  of  notice  of  default  pay  its  obligations,  he 
shall  cite  the  president,  secretary,  manager,  or  general  agent  of 
said  corporation,  or  all  of  them,  to  appear  before  him  (stating 
the  time  and  place)  to  show  cause  why  the  authority  of  such 
corporation  to  do  business  shall  not  be  revoked ;  and  if  they  can 
not  show  cause,  then  he  shall  report  the  facts  to  the  attorney 
general  of  this  state,  who  shall  commence  proceedings  in  the 
proper  court  to  restrain  said  corporation  from  doing  any  further 
Imsiness. 

Assessments,  notice  of  to  be  mailed. 

'Sec.  10.  No  policy  or  certificate  issued  by  any  corporation 
or  association  doing  business  under  the  provisions  of  this  act 
shall  lapse  or  be  lapsed  for  the  non-payment  of  any  assessments, 
dues,  or  premiums,  unless  the  corporation  or  association  has  first 
mailed  to  the  insured  under  such  policy  or  certificate,  at  his  or 
her  last  given  post  office  address,  a  notice  setting  forth  the 
amount  to  be  paid,  and  the  time  the  same  is  due  and  payable  ; 
and  such  notice  shall  be  mailed  at  least  fifteen  days  before  the 
assessment  is  due  (provided  that  such  corporations  doing  busi- 
ness under  this  act  as  collect  specific  amounts  at  specific  dates, 
as  contained  in  the  contract,  shall  not  bo  compelled  to  send  such 
notices),   and  an   affidavit  made   by   the  oSicer,   ))ookkeeper,   or 


INSURANCE.  613 

clerk  of  any  such  corporation  having  charge  of  the  mailing  of 
notices,  setting  forth  the  facts  as  they  appear  on  the  records 
in  the  office  of  the  said  corporation,  showing  that  such  notice 
was  mailed  and  the  date  of  mailing,  shall  constitute  conclusive 
evidence  of  the  mailing  of  such  notice. 

Fees  for  filing  statements,  etc. 

Sec.  12.  The  fees  for  filing  statements,  certificates,  or  other 
documents  required  by  this  act,  or  for  any  service  or  act  of  the 
insurance  commissioner,  and  the  penalties  for  any  violation  of 
this  act,  shall,  except  as  otherwise  provided  herein,  be  the  same 
as  provided  in  the  laws  of  this  state  relating  to  life  insurance 
companies,  and  shall  be  disposed  of  as  provided  by  such  law. 

Expenses  of  Insurance  commissioner,   how  paid. 

Sec.  13.  And  for  all  lawful  expenses  under  this  act,  or  by 
reason  of  any  of  its  provisions,  in  the  prosecution  of  any  suit  or 
proceedings,  or  otherwise,  for  the  enforcement  of  the  provisions 
of  this  act,  the  insurance  commissioner  must  present  bills  duly 
certified  by  him,  and  accompanied  with  vouchers,  to  the  state 
board  of  examiners,  who  must  allow  the  same,  and  direct  pay- 
ment thereof  to  be  made ;  and  the  state  controller  shall  draw 
warrants  therefor  on  the  state  treasurer  for  the  payment  of  the 
same  to  the  insui-ance  commissioner,  in  addition  to  the  ordinary 
contingent  expenses,  which  warrant  shall  be  payal)le  out  of  the 
general  fund. 

Time  act  shall  take  effect. 

Sec.  14.     This  act  shall   fake  (■ITecf  inunedial.'ly. 


(>14  STATUTES    AT   tAnCifi. 


An  act  to  establish  a  standard  form  of  fire  insurance  policy  and 
to  prevent  variations  therefrom,  excepting  under  certain 
stated   conditions   and   restrictions.  % 

Approved  March   IS.    1009;    stat.s.    IKOil,    p.    404. 

The  people  of  the  State  of  Californin,  rei)resented  in  senate  and 
assemhhi,  do  enact  as  foUoivs: 

Standard  form  of  fire  insurance  policy — Stipulations  and  condi- 
tions— Property  not  covered — Hazards  not  covered — Matters 
avoiding  policy — IVlatters  suspending  insurance — Chattel 
mortgage — Fallen  building  clause — Removal  when  endan- 
gered by  fire — Cancellation — Duty  of  insured  in  case  of  loss — 
Proof  of  loss — Defective  proof — Examination  of  insured — 
Ascertainment  of  amount  of  loss — When  insured  and  com- 
pany disagree — Appraisement  of  loss — Pay  of  appraisers — 
Options  of  company — Apportionment  of  loss — When  pay- 
able— Non-waiver  clause — Subrogation — Time  for  commence- 
ment of  action — Definitions. 

Section  1.     The  following  is  adopted  as  a  standard  form  of 
fire  insurance  policy  for  the  State  of  California  : 


CALIFORNIA     STANDARD    FORM     FIRE     INSURANCE 
POLICY. 

No Amount  .$ 

Rate 

No  other  insurance  permitted 
except  by  agreement  endorsed  hereon  or  added  hereto. 

(Here  insert  name  of  company,  and  place  of  its  main  office 
in  California,  and  name  of  state  or  country  under  which  incor- 
porated or  organized.) 

IN  CONSIDEi:.\-TION  of  the  stipulations  heroin  named  and 

of dollars  premium   does  insure 

for  the  term  of from  the day  of  . 

19 at  noon,  to  the  ....  day  of lt> at 

noon  against  all   loss  or  damage  by   lire,  except  as  hereinafter 
provided. 


INSURANCE.  01 5 

To  iui  aiiioiuit  Hot  I'-xc-et'cliiig-   doHars  In  tlie 

following    described    property    while    located    and    contained    as 
described  herein,  and  not  elsewhere,  to  wit : 


The  company  will  not  he  liable  beyond  the  actual  cash  value 
of  the  interest  of  the  insured  in  the  property  at  the  time  of  loss 
or  damage  nor  exceeding  what  it  would  then  cost  the  insured  to 
repair  or  replace  the  same  with  material  of  like  kind  and  quality  ; 
said  cash  value  to  be  estimated  without  allo'wance  for  any 
increased  cost  of  repair  or  reconstruction  by  reason  of  any 
ordinance  or  law  regulating  repair  or  construction  of  buildings, 
and  without  compensation  for  loss  resulting  from  iuterruiition 
of  business  or  manufacture. 

This  policy  is  made  and  accepted  subject  to  the  foregoing 
stipulations  and  conditions  and  those  hereinafter  stated,  which 
are  hereby  specially  referred  to,  and  made  part  of  this  policy, 
together  with  such  other  provisions,  agreements  or  conditions  as 
may  be  endorsed  hereon  or  added  hereto,  and  no  officer,  agent  or 
other  representative  of  this  company  shall  have  power  to  waive 
any  provision  or  condition  of  this  policy  except  by  writing 
endorsed  hereon  or  added  hereto,  and  no  person,  unless  duly 
authorized  in  writing,  shall  be  deemed  the  agent  of  this  company. 

This  policy  shall  not  be  valid  until  countersigned  by  the  duly 
authorized  agent  of  the  company,  at 

In  Witness  Whereof,  this  company  has  executed  and  attested 
these  presents   (here  insert  name  of  company) 

by  

Countersigned  at this dav  of 10.  . .  . 


.Agent. 


STIPULATIONS   AND    CONDITIONS    SPECIALLY    REFERRED    TO. 

Property  not  covered,  (a)  This  company  shall  not  be  liable 
for  loss  to  accounts,  bills,  currency,  evidences  of  debt  or  owner- 
.ship  or  other  documents,  money,  notes  or  securities ;  nor, 
(b)  unless  liability  is  specifically  assumed  hereon,  for  loss  to 
bullion,  casts,  curiosities,  drawings,  dies,  jewels,  manuscripts, 
medals,  models,  patterns,  pictures,  scientific  apparatus,  busi- 
ness or  store  or  office  furniture  or  fixtures,  sculptures,  frescoes, 
decorations,  or  property  held  on  storage  or  for  repair. 


GIG  STATUTES    AT   LARGE. 

II azariJs  not  covered.  This  company  will  uot  be  liable  for  loss 
by  (a)  theft;  or  (6)  by  ueglect  of  the  insured  to  use  all  reason- 
able means  to  save  and  preserve  the  property  at  and  after  a 
fire,  or  when  the  property  is  endangered  by  fire;  or  (c)  (unless 
fire  ensues,  and  in  that  event  for  the  damage  by  fire  only)  by 
explosion  of  any  kind  or  lightning;  or  {d)  by  invasion,  insur- 
rection, riot,  civil  war,  or  commotion,  or  (except  as  hereinafter 
provided)  by  military  or  usurped  power,  or  order  of  any  civil 
authority,  but  the  company  will  be  liable  (unless  otherwise  pro- 
vided by  endorsement  hereon  or  added  hereto)  if  the  property 
is  lost  or  damaged,  by  fire  or  otherwise,  by  civil  authority  or 
military  or  usurped  power  exercised  to  prevent  the  spread  of 
fire  uot  originating  from  a  cause  excepted  hereunder  and  which 
fire  otherwise  probably  would  have  caused  the  loss  of  or  damage 
to  the  insured  property. 

Matters  avoiding  policy.  This  entire  policy  shall  be  void, 
(a)  if  the  insured  has  concealed  or  misrepresented  any  material 
fact  or  circumstances  concerning  this  insurance  or  the  subject 
thereof ;  or,  ( & )  in  case  of  any  fraud  or  false  swearing  by  the 
insured  touching  any  matter  relating  to  this  insurance  or  the 
subject  thereof,  whether  before  or  after  a  loss. 

Unless  otherwise  provided  by  agreement  endorsed  hereon  or 
added  hereto,  this  entire  policy  shall  be  void,  (a)  if  the  insured 
now  has  or  shall  procure  any  other  insurance,  whether  valid  or 
not,  on  property  covered  in  whole  or  in  part  by  this  policy,  or 
{h)  if  the  interest  of  the  insured  be  other  than  unconditional 
and  sole  ownership,  or  (c)  if  the  subject  of  insurance  be  a 
building  on  ground  not  owned  by  the  insured  in  fee  simple,  or 
{d)  if  with  the  knowledge  of  the  insured  foreclosure  proceed- 
ings be  commenced  or  notice  given  of  sale  of  any  property 
covered  by  this  policy  by  virtue  of  any  mortgage  or  trust  deed, 
or  (e)   if  this  policy  be  assigned  before  a  loss. 

Matters  suspending  insurance.  Unle.ss  otherwise  provided  by 
agreement  endorsed  hereon  or  added  hereto  this  company  shall 
not  be  liable  for  loss  or  damage  occurring  (a)  while  the  hazard 
bo  materially  increased  by  any  means  within  the  control  of  the 
insured;  or  (h)  if  the  subject  of  insurance  be  a  manufacturing 
cslablishment,  while  it  is  operated  in  whole  or  in  part  at  night 
later  than  ten  o'clock  or  while  it  ceases  to  be  operated  beyond 
tlie  period  of  ten  consecutive  days;  or  (c)  while  mechanics  or 
artisans  are  employed   in  building  or  altering  or  repairing  the 


INSURANCE.  (117 

described  premises  for  more  thau  fifteen  days  at  auy  ouc  time ; 
or  (d)  while  illumiuating  gas  or  vapor  be  generated  in  the 
described  building  (or  adjacent  thereto)  for  use  therein;  or 
(e)  while  there  be  kept,  used  or  allowed  on  the  described 
premises  (any  usage  or  custom  of  trade  or  manufacture  to  the 
contrary  notwithstanding)  calcium  carbide,  phosphorus,  dyna- 
mite, nitroglycerine,  fireworks  or  other  explosives;  or  exceeding 
one  quart  each  of  benzine,  gasoline,  naphtha  or  other ;  or  more 
than  twenty-five  pounds  of  gunpowder;  or  (f)  while  a  building 
herein  described  whether  intended  for  occupation  by  owner  or 
tenant  is  vacant  or  unoccupied  beyond  the  period  of  ten  (10) 
consecutive  days;  (o)  while  the  interest  in,  title  to  or  pos- 
session of  the  subject  of  insurance  is  changed  excepting : — 
(1)  by  the  death  of  the  insured;  (2)  a  change  of  occupancy  of 
building  without  material  increase  of  hazard;  and  (3)  transfer 
by  one  or  more  several  copartners  or  coownei's  to  the  others. 

Such  suspension  shall  not  extend  the  term  of  this  policy  nor 
create  any  right  for  refund  of  the  whole  or  any  portion  of  pre- 
mium, nor  affect  the  respective  rights  of  cancellatiou. 

(Jliattel  mort(j(ige.  Unless  otherwise  provided  by  agreement 
in  writing  endorsed  hereon  or  added  hereto  this  company  shall 
not  be  liable  for  loss  or  damage  to  any  property  insured  here- 
under while  encumbered  by  a  chattel  mortgage,  but  the  liability 
of  the  company  upon  other  property  hereby  insured  shall  not  be 
affected  by  such  chattel  mortgage. 

Fallen  litiildwg  clause.  Unless  otherwise  provided  by  agree- 
ment endorsed  hereon  or  added  hereto,  if  a  building  or  any 
material  part  thereof  fall,  except  as  the  result  of  fire,  all  insur- 
ance by  this  policy  on  such  building  or  its  contents  shall  imme- 
diately cease. 

Removal  when  endatujercd  hy  fire.  Should  any  of  said  prop- 
erty be  necessarily  removed  because  of  danger  from  fire,  and 
there  Ls  no  other  insurance  thereon,  that  part  of  this  policy  in 
excess  of  the  value  of  the  insured  property  remaining  in  the 
original  location,  or,  if  there  is  other  insurance  thereon,  that 
part  of  this  policy  in  excess  of  its  proportion  of  the  value  of 
the  insured  property  remaining  in  the  original  location,  shall, 
for  the  ensuing  five  days  only,  cover  said  removed  property  in 
its  new  location  or  locations. 

Cancellation.  This  policy  shall  be  cancelled  at  auy  time  at 
the  request  of  (he  insured,  in  which  case  the  company  shall, 
upon  surrender  of  this  policy,  refund  the  excess  of  paid  pre- 


018  STATUTES    AT   LARGE. 

nuiiiii  iiliovi'  (he  customary  short  rates  for  the  expired  time. 
This  policy  may  be  caiiceUed  at  any  time,  without  tender  of 
unearned  portion  of  premium,  by  the  company  by  giving  five 
(5)  days'  written  notice  of  cancellation  to  the  insured  and  to 
any  mortgagee  or  other  party  to  whom,  with  the  written  con- 
sent of  the  comi)any,  this  policy  is  made  payable,  in  which  case 
the  company  shall,  npon  surrender  of  the  policy  or  relinquish- 
ment of  liability  thereunder  refund  the  excess  of  paid  premium 
above  the  pro  rata  i)remium  for  the  expired  time. 

Diitii  of  iii-siirciJ  ill  case  of  loss.  When  a  loss  occurs  th(! 
insured  must  ;;i\e  lo  this  company  written  notice  thereof  with- 
out unnecessary  delay;  and  shall  protect  the  property  from 
further  damage :  forthwith  separate  the  damaged  and  undam- 
aged personal  i)roperty  and  put  it  in  the  best  possible  order  ; 
and  without  unnecessary  delay  make  a  complete  inventory  stat- 
ing as  far  as  possible  the  quantity  and  cost  of  each  article,  and 
the  amount  claimed  thereon. 

Within  sixty  days  after  the  commencement  of  the  fire  the 
insured  shall  render  to  the  company  at  its  main  office  in  Cali- 
fornia named  herein  preliminary  pi'oof  of  loss  consisting  of  a 
written  statement  signed  and  sworn  to  by  him  setting  forth  : — 
(n)  his  knowledge  and  belief  as  to  the  origin  of  the  fire;  (5)  the 
interest  of  the  insured  and  of  all  others  in  the  property;  (c)  the 
cash  value  of  the  different  articles  or  properties  and  the  amount 
of  loss  thereon;  (d)  all  incumbrances  thereon;  (c)  all  other 
insurance  whether  valid  or  not,  covering  any  of  said  articles 
or  properties;  (f)  a  copy  of  the  descriptions  and  schedules  in 
all  other  policies  unless  similar  to  this  policy,  and  in  that 
event,  a  statement  as  to  the  amounts  for  which  the  different 
articles  or  properties  are  insured  in  each  of  the  other  policies; 
(ff)  any  changes  of  title,  use.  occupation,  location  or  possession 
of  said  property  since  the  issuance  of  this  policy;  (h)  by  whom 
and  for  what  purpose  any  building  herein  described,  and  the 
several  parts  thereof,  were  occupied  at  the  time  of  the  fire. 

If  the  company  claims  that  the  preliminary  proof  of  loss  is 
defective  and  within  five  days  after  the  receipt  thereof  (with- 
out admitting  the  amount  of  loss  or  any  part  thereof)  notifies 
in  writing  the  insured,  or  the  party  making  such  proof  of  loss, 
of  the  alleged  defects  (specifically  stating  them)  and  requests 
that  they  be  remedied  by  verified  amendments  the  insured  or 
such  party  within  ten  days  after  the  receipt  of  such  notifica- 


INSURANCE.  6in 

tioii  and  rciiucst  must  comply  Ihcrewilli  (ir,  if  imalilc  so  to  do, 
present  to  the  company  an  affidavit  to  that  effect. 

The  insui'ed  shall  also  furnish,  if  re(jnii"ed,  as  far  as  it  is 
practicable  to  obtain  the  same,  verified  plans  and  specifications 
of  any  buikliu.ss.  fixtures  or  machinery  destroyed  or  damaged ; 
aud~the  insured  shall  exhibit  to  any  person  designated  in  writing 
by  this  company  all  that  remains  of  any  property  herein 
described  and  shall  submit  to  examination  under  oath,  as  often 
as  required,  by  any  such  person,  and  subscribe  to  the  testimony 
so  given  and  shall  produce  to  such  person  for  cxainination  all 
books  of  account,  bills,  invoices  and  other  vouciu  rs.  and  ](ermit 
extracts  and  copies  thereof  to  be  made,  and  in  case  the  ori;;inals 
are  lost  certified  copies,  if  obtainable,  shall  be  produced. 

A  ascertain  me  lit  of  amninif  of  /((«v.  This  company  shall  be 
deemed  to  have  assented  to  the  amount  of  the  loss  claimed  by 
the  insured  in  his  preliminary  proof  of  loss,  unless  within  twenty 
days  after  the  receipt  thereof,  or.  if  verified  amendments  have 
been  requested,  within  twenty  days  after  their  receii)t.  or  within 
twenty  days  after  the  receipt  of  an  affidavit  that  the  insured 
is  unal)le  to  furnish  such  amendments,  the  company  shall  notify 
the  insured  in  writing  of  its  partial  or  total  disagreement  with 
the  amount  of  loss  claimed  by  him  and  shall  also  notify  him  in 
writing  of  the  amount  of  loss,  if  any,  the  company  admits  on 
each  of  the  different  articles  or  properties  set  forth  in  the  pre- 
liminary proof  or  amendments  thereto. 

If  the  insured  and  this  company  fail  to  agree,  in  whole  or  in 
part,  as  to  the  amount  of  loss  within  ten  days  after  such  notifi- 
cation, this  company  shall  forthwith  demand  in  writing  an 
appraisement  of  the  loss  or  part  of  loss  as  to  which  there  is  a 
disagreement  and  shall  name  a  competent  and  disinterested 
appraiser,  and  the  insured  within  five  days  after  receipt  of 
such  demand  and  name,  shall  appoint  a  competent  and  disin- 
terested appraiser  and  notify  the  company  thereof  in  writing, 
and  the  two  so  chosen  shall  before  commencing  the  appraise- 
ment, select  a  competent  and  disinterested  umpire. 

The  appraisers  together  shall  estimate  and  appraise  the  loss 
or  part  of  loss  as  to  which  there  is  a  disagreement,  stating 
separately  the  sound  value  and  damage,  and  if  they  fail  to 
agree  they  shall  submit  their  differences  to  the  umpire,  and  the 
award  in  writing  duly  verified  of  any  two  shall  determine  the 
amount  or  amounts  of  such  loss. 


n20  STATUTES    AT    I.AROE. 

The  parties  to  the  appraisement  shall  pay  the  appraisers 
respectively  appointed  by  them  and  shall  bear  equally  the 
expense  of  the  appraisement  and  the  charges  of  the  umpire. 

If  for  any  reason  not  attributable  to  the  insured,  or  to  the 
appraiser  appointed  by  him,  an  appraisement  is  not  had  and 
completed  within  ninety  days  after  said  preliminary  proof  of 
loss  is  received  by  this  company,  the  insured  is  not  to  be  preju- 
diced by  the  failure  to  make  an  appraisement,  and  may  prove 
the  amount  of  his  loss  in  an  action  brought  without  such 
appraisement. 

Options  of  company  in  case  of  loss.  This  company  may,  at  its 
option,  take  all  or  any  part  of  the  property  for  which  insurance 
hereunder  is  claimed  at  its  ascertained  or  appraised  value,  and 
may  also,  at  its  option,  in  satisfaction  of  its  liability  hereunder, 
repair,  rebuild  or  replace  any  building  or 'structure  or  machine 
or  machinery  used  therein,  with  other  of  like  kind  and  quality, 
within  a  reasonable  time,  upon  giving  notice  within  twenty  days 
of  its  intention  so  to  do  after  the  receipt  by  it  of  the  preliminary 
proof  of  loss,  or,  if  verified  amendments  have  been  requested, 
within  twenty  days  after  their  receipt,  or,  within  twenty  days 
after  the  receipt  of  an  affidavit  that  the  insured  is  unable  to 
furnish  such  amendments. 

There  can  be  no  abandonment  to  this  company  of  any 
property. 

Apportionment  of  loss.  This  company  shall  not  be  liable 
under  this  policy  for  a  greater  proportion  of  any  loss  on  the 
described  property,  or  for  loss  by,  and  expenses  of,  removal  from 
the  premises  endangered  by  fire,  than  the  amount  hereby  insured 
bears  to  the  entire  insurance  covering  such  property  whether 
valid  or  not,  or  by  solvent  or  insolvent  insurers. 

Loss  lohen  payahle.  A  loss  hereunder  shall  be  payable  in 
thirty  days  after  the  amount  thereof  has  been  ascertained  either 
by  agreement  or  by  appraisement ;  but  if  such  ascertainment  is 
not  had  or  made  within  sixty  days  after  the  receipt  by  the  com- 
pany of  the  preliminary  proof  of  loss,  then  the  loss  shall  be  pay- 
able in  ninety  days  after  such  receipt. 

Non-ivaiver  by  appraisal  or  examination.  This  company  shall 
not  be  held  to  have  waived  any  provision  or  condition  of  this 
policy  or  any  forfeiture  thereof,  by  assenting  to  the  amount  of 
the  loss  or  damage  or  by  any  requirement,  act,  or  proceeding  on 
its  part  relating  to  the  appraisal  or  to  any  examination  herein 
provided  for. 


TN8TTRAN0E.  021 

Huhnxjalioii.  If  this  company  shall  claim  that  the  lire  was 
caused  by  the  act  or  neglect  of  any  person  or  corporation,  this 
company  shall,  on  payment  of  the  loss  be  subrogated  to  the 
extent  of  such  payment  to  all  right  of  recovery  by  the  insured  for 
the  loss  resulting  therefrom,  and  such  right  shall  be  assigned  to 
this  company  by  the  insured  on  receiving  such  payment. 

Time  for  commeiiccrnent  of  aciioii.  No  suit  or  action  on  this 
policy  for  the  recovery  of  any  claim  shall  l)e  sustained,  until 
after  full  compliance  by  the  insured  with  all  of  the  foregoing 
requirements,  nor  unless  begun  wilhin  Hfteen  months  next  after 
the  commencement  of  the  fire. 

Definitions.  Wherever  in  this  policy  the  \vord  "insured" 
occurs,  it  shall  be  held  to  include  the  legal  representatives  of 
the  insured  in  case  of  his  death,  and  wherever  the  word  "loss" 
occurs,  it  shall  be  deemed  the  equivalent  of  "loss  or  damage." 
and  wherever  the  w^ords  "the  time  of  loss  or  damage"  are  used 
they  shall  be  deemed  the  equivalent  of  "the  time  of  the  com- 
mencement of  the  fire." 

What  to  be  printed  on  outside  fold  of  policy. 

Sec.  2.  There  shall  be  printed  on  the  outside  fold  of  said 
policy  in  type  not  smaller  than  small  pica  the  following  words 
in  this  form  : 

READ  THIS  POLICY. 

Ins.  Co.  is  liable  only  for  actual  cash  value. 

Policy  is  void  in  case  of  any  fraud,  false  swearing, 
misrepresentation  or  concealment  about  material  facts. 

Policy  is  void,  unless  otherwise  agreed  in  writing,  if 

1st.  It  is  assigned  before  loss  ; 

2d.   In.sured  has  or  shall  procure  other  insurance  ; 

3d.  Any  change  occurs  in  location  of  property  : 

4th.  Insured  building  is  on  ground  not  owned  in  fee 
simple  by  insured ; 

5th.  Insured  is  not  sole  and  unconditional  owner. 

Policy    is    suspended,    unless    otherwise    agreed    in 
writing,  if 

Gth.  Described   building   becomes    vacant    or    unoccu 
pied  for  ten  days ; 

7th.  Mechanics  are  employed  more  than  fifteen  dn,\s 
in   repairing  same ; 

8th.   I'roperty    is   or   bcenmes    encumbered    by    dial  hi 
mortgage ; 


622  STATUTES    AT   LARGE. 

9th.  Illuminating  gas  or  vapor  is  generated  in  or 
adjacent  to  descrilied  building  ; 

10th.  Explosives  or  prohibited  quantities  of  gasoline, 
etc.,  are  kept  on  premises. 

Insurance  ceases  if  described  building  or  any  ma- 
terial part  falls  except  as  result  of  fii'e. 

Policy  does  not  cover  certain  enumerated  personal 
property. 

Note  particularly  duty  of  insured  in  case  of  loss; 

Also  provisions  avoiding  or  suspending  policy, 
including  changes  of  ownership  or  possession. 

Special  agreement  regarding  appraisement. 

Sec.  3.  By  special  agreement  endorsed  on  the  policy  or  added 
thereto  the  provisions  regarding  appraisement  or  apportionment 
of  loss  may  be  waived  and  the  valuations  of  all  or  any  of  the 
insured  property  in  case  of  total  loss  may  be  agreed  upon  in 
advance  of  loss. 

Policy  to  be  plainly  printed. 

Sec.  4.  Said  standard  fonu  of  policy  shall  be  plainly  printed 
and  no  portion  thereof  shall  be  in  type  smaller  than  small  pica 
and  subheads  shall  be  in  type  larger  than  pica,  and  the  lines  of 
the  policy  shall  be  numbered  consecutively. 

County  fire  companies  excepted. 

Sec.  T).  This  act  shall  not  apply  to  any  compajiy  organized 
under  an  act  entitled  "An  act  to  provide  for  the  organization 
and  management  of  county  fire  insurance  companies,"  approved 
April  1,  1897,  or  amendments  to  that  act,  but  all  other  fire 
insurance  policies  on  property  in  Califoi-nia  shall  be  on  said 
standard  form,  and,  except  as  herein  provided,  shall  not  contain 
additions  thereto.  No  parts  of  the  standard  form  shall  be 
omilted  thei-efrom. 

What  may  be  added  to  policy. 

Sec.  G.  The  blanks  in  said  .standard  form  shall  i)e  appro- 
priately filled.  The  company  may  add  to  (he  standard  form  any 
matter  relating  to  its  financial  condition,  directors,  officers, 
stockholders  and  history,  and  the  address  of  its  home  office  and 
principal  office  in  the  United  States ;  also  in  red  ink  any  pro- 
visions respecting  any  limitation  of  liability  of  the  company,  its 
stockholders  or  members   which   it  is   re(iuired  or  permitted  by 


INSURANCE.  G23 

the  law  of  the  state  or  country  of  its  orgauizutiou  to  insert  in 
its  policies. 

Clauses  as  to  mortgages. 

Sec.  7.  Clauses  may  be  added  to  the  standard  form  providing 
for  and  defining  the  rights,  duties  and  obligations  of  mortgagees, 
assignees  and  other  parties  who  have  acquired  or  may  acquire 
an  interest  in,  right  to  or  lien  upon  the  insured  property. 

Earthquake  clause  may  be  Inserted,  how. 

Sec.  8.  No  clause  shall  be  inserted- or  rider  attached  affecting 
the  standard  form  liability  of  the  insurer  for  loss  or  damage  by 
fire  occasioned  either  directly  or  indirectly  by  earthquake,  hurri- 
cane, volcanic  action  or  other  disturbance  of  nature,  unless  th(» 
same  shall  be  printed  in  red  ink  in  type  larger  than  small  pica 
and  at  the  head  of  the  policy  there  shall  be  printed  in  red  ink  in 
large  bold  faced  type  the  words,  "This  policy  contains  limitations 
of  liability  not  permitted  in  the  California  standard  form." 

Other  additional  clauses. 

Sec.  0.  Clauses  may  be  added  to  the  standard  form  (a)  cov- 
ering property  and  risks  not  otherwise  covered;  (?>)  assuming 
greater  liability  than  is  otherwise  imposed  on  the  insurer ; 
(c)  granting  insured  permits  and  privileges  not  otherwise  pro- 
vided; (d)  waivers  of  any  of  the  matters  avoiding  the  policy  or 
suspending  the  insurance;  (e)  waivers  of  any  of  the  recjuire- 
inents  imiiosed  on  the  insured  after  loss. 

Separate  riders. 

Sec.  10.  PJxcept  as  herein  otherwise  provided  clauses  may  be 
attached  to  the  standard  form  by  separate  riders  in  type  larger 
than  pica  imposing  specified  duties  and  obligations  uiiou  the 
insured  and  limiting  (he  liabilily  of  the  insurer. 

Insurers  other  than  corporations. 

Sec.  11.  Any  insurers,  otho)'  llian  corporations,  issuing  poli- 
cies on  property  in  California,  shall  use  the  standard  lorni, 
changing  only  such  words  as  refer  to  the  corporation  or  company 
or  to  officers  or  agents  of  the  corporation  or  company,  and  in 
regard  to  its  organization  ;  and  such  other  insurers  may  substitute 
in  place  of  such  words  having  peculiar  reference  to  corporations, 
appropriate  words  having  similar  reference  to  themselves. 


<;l*4  statutes  at  lauok.  ■ 

Penalty  for  violation  of  act. 

Sec.  12.  Any  iiisurtT,  ur  the  ageut  couutersigning  or  issuing 
:i  fire  insurance  policy  covering  in  whole  or  in  part  property  in 
(California  varying  from  the  California  standard  form  of  policy 
except  as  herein  provided  is  guilty  of  a  misdcmoanor  hut  any 
policy  so  issued  shall  notwithstanding  be  binding  upon  the  com- 
pany issuing  the  same. 

Time  act  shall  take  effect. 

Sec.  13.  This  act  shall  take  elT(M't  and  Ix^  in  force  from  and 
MftiM-  llic  (irs(  dnv  of  August,  lltd!). 


INTEREST. 

See  Brokers. 


LICENSE  TAX. 

An  act  to  enforce  the  collection   of  license  taxes. 

Approved  March  21,   1872;   stat.s.   1871-2,  p.   53;t. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  rnaet  as  follows: 

Proceedings  for  collection  of  delinquent  tax. 

SectiOiN  1.  Whenever  any  person  who  is  required  by  law  to 
pay  a  ferry  or  bridge  license  tax  neglects  to  pay  the  same  for  the 
period  of  thirty  days  after  the  same  is  due  or  imyable.  the  col- 
lector of  such  taxes  must  notify  the  district  attorney  thereof, 
who  must  at  once  institute  proceedings  against  such  jierson. 

Time  act  shall  take  effect. 

Sec.  2.     This  act  shall  be  in  force  from  and  after  its  ])assage. 


LICENSE  TAX.  (j2.j 


An  act  relating  to  revenue  and  taxation,  providing  for  a  license 
tax  upon  corporations,  and  making  an  appropriation  for  the 
purpose  of  carrying  out  the  objects  of  this  act. 

Approved  March  20,  1905;  stats.   i:»05,  p.  493. 
Amended  June  13,   1906;  stats.   1906,  p.   22. 
Amended  March  19,  1907  ;  stats.  1907,  p.  664. 
Amended  March  20,   1907  ;  stats.  1907,  p.   745. 
Amended  March  19,   1909;  stats.   1909,  pp.  454.   458,  459. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assenibhi,  do  enact  as  folhrws: 

Corporation  not  to  do  business  without  state  license. 

Section  1.  No  corporation  heretofore  or  hereafter  incorpo- 
rated under  the  laws  of  this  state,  or  of  any  other  state,  shall 
do  or  attempt  to  do  business  by  virtue  of  its  charter  or  certifi- 
cate of  incorporation,  in  this  state,  without  a  state  license  there- 
for.     [Section  1  amended  June  13,  1906. J 

Of  whom  procured — Amount  of  annual  license  tax — When  pay- 
able— When   delinquent — Definition   of  "year." 

Sec.  2.  It  shall  be  the  duty  of  every  corporation  incorpo- 
rated under  the  laws  of  this  state,  and  of  every  foreign  corpora- 
tion now  doing  business,  or  Avhich  shall  hereafter  engage  in 
business  in  this  state,  to  procure  annually  from  the  secretary  of 
state  a  license  authorizing  the  transaction  of  such  business  in 
this  state,  and  shall  pay  therefor  a  license  tax  as  follows : 

When  the  authorized  capital  stock  of  the  corporation  does  not 
exceed  ten  thousand  dollars  ($10,000)  the  tax  shall  be  ten  dol- 
lars ($10.00)  ;  when  the  authorized  capital  stock  exceeds  ten 
liiousand  dollars  ($10,0f)0)  but  dors  not  exceed  twenty  thou- 
sand dollars  ($20,000)  the  tax  shall  lie  fifteen  dollars  ($15.00)  ; 
when  the  authorized  capital  stock  cxcimxIs  twenty  thousand  dol- 
lars ($20,000)  but  does  not  exceed  fifty  thousand  dollars 
($50,000)  the  tax  shall  be  twenty  dollars  ($20.00)  ;  when  the 
authorized  capital  stock  exceeds  fifty  thousand  dollars  ($50,000) 
but  does  not  exceed  one  hundred  thousand  dollars  ($100,000) 
the  tax  shall  be  twenty-five  dollars  ($25.00)  ;  when  the  author- 
ized capital  stock  exceeds  one  hundred  thousand  dollars 
($100,000)  but  does  not  exceed  two  hinidred  and  fifty  thousand 
dollars  ($250,000)  the  tax  shall  be  fifty  dollars  ($50.00)  ;  when 
I  111'  authorized  cai)ilal  stock  exceeds  two  hundred  and  fifty 
thousand  dollars    ($250,000)    but  does  not  exceed   five  hundred 

27— CL 


(■(20  STATUTES    AT   LARGE. 

thousand  dollars  ($500,000)  the  tax  shall  be  seventy-five  dollars 
($75.00)  ;  when  the  authorized  capital  stock  exceeds  five  hun- 
dred thousand  dollars  ($500,000)  but  does  not  exceed  two  mil- 
lion dollars  ($2,000,000)  the  tax  shall  be  one  hundred  dollars 
($100.00)  ;  when  the  authorized  capital  stock  exceeds  two  mil- 
lion dollars  ($2,000,000)  but  does  not  exceed  five  million  dollars 
($5,000,000)  the  tax  shall  be  two  hundred  dollars  ($200.00)  ; 
when  the  authorized  capital  stock  exceeds  five  million  dollars 
($5,000,000)  the  tax  shall  be  two  hundred  and  fifty  dollars 
($250.00). 

Said  license  tax  or  fee  shall  be  due  and  payable  on  the  first 
day  of  July  of  each  and  every  year  to  the  seci'etary  of  state, 
who  shall  pay  the  same  into  the  state  treasury.  If  not  paid 
on  or  before  the  hour  of  four  o'clock  p.  m.  of  the  first  day  of 
September  next  thereafter,  the  same  shall  become  delinquent 
and  there  shall  be  added  thereto,  as  a  penalty  for  such  delin- 
quency, the  sum  of  ten  dollars. 

The  license  tax  or  fee  hereby  provided  authorizes  the  cor- 
poration to  transact  its  business  during  (he  year  or  for  any 
fractional  part  of  such  year  in  which  such  license  tax  or  fee 
is  paid.  "Year,"  within  the  meaning  of  this  act,  means  from 
and  including  the  first  day  of  July  to  and  including  the  thii-tieth 
day  of  June  next  thereafter.  [Section  2  amended  March  10, 
1909;  stats.  1909,  p.  458;  in  effect  July  1,  1909.] 

When  tax  must  be  paid  by  new  corporations. 

Sec.  2a.  At  the  time  of  filing  a  certified  copy  of  articles  of 
incorporation  of  any  corj)oration  when  filed  on  or  between  the 
first  day  of  July  and  the  thirtieth  day  of  Septend)er,  in  any 
year,  there  shall  be  paid,  in  addition  to  all  other  fees  required 
by  law  to  be  paid  to  the  secretary  of  state,  the  full  amount  of 
the  license  tax  provided  to  be  paid  in  section  two  of  this  act : 
when  filed  on  or  between  the  first  day  of  October  and  the  thirty- 
first  day  of  December,  in  any  year,  a  sum  equal  to  three  fourths 
of  the  license  tax  provided  for  in  section  two  of  this  act  shall 
be  paid  ;  when  filed  on  or  between  the  first  day  of  January  and 
the  thirty-first  day  of  March,  in  any  year,  a  sum  equal  to  one 
half  of  such  license  tax  provided  for  in  section  two  of  this  act 
shall  be  paid,  and  when  filed  on  or  between  the  first  day  of  April 
and  the  thirtieth  day  of  June,  in  any  year,  a  sum  equal  to  one 
fourth  of  such  license  tax  provided  for  in  section  two  of  this  act 
shall   bo  paid.     Upon   receipt  of  such   full  or  fractional   license 


UCENSE  TAX.  627 

tax  the  secretary  of  state  shall  issue  a  license  receipt  for  the  full 
or  for  the  fractional  part  of  the  then  current  fiscal  year.  [New 
section ;  added  March  19,  1909 ;  stats.  1909,  p.  459 ;  in  effect 
July  1,  1909.] 

Secretary  of  state  shall  report  names  of  delinquents — Proclama-. 
tion  by  governor. 
Sec.  3.  The  secretary  of  state  shall,  on  or  before  the  fif- 
teenth day  of  September  in  each  year,  report  to  the  governor  of 
the  state  a  list  of  all  corijorations  which  have  become  delinqtieut. 
as  provided  in  section  two  of  this  act,  and  the  governor  shall 
forthwith  issue  his  proclamation,  declaring  under  this  act,  that 
the  charters  of  such  delinquent  domestic  corporations  will  be 
forfeited  and  the  right  of  such  foreign  corporations  to  do  busi- 
ness in  this  state  will  be  forfeited  unless  payment  of  said  license 
tax,  together  with  the  penalty  for  such  delinquency,  as  herein- 
before provided,  be  made  to  the  secretary  of  state  on  or  before 
rlie  hour  of  four  o'clock  p.  m.  of  the  thirtieth  day  of  November 
next  following.      [Section  3  amended  June  13,  190G.] 

Filing  and  publication  of  proclamation. 

Skc.  4.  Said  proclamation  shall  !>e  filed  inuiifdiately  in  the 
(ittice  of  the  secretary  of  state,  and  said  secretary  of. state  shall 
immediately  cause  a  copy  of  said  proclauuition  to  be  published 
in  one  issue  of  each  of  two  daily  newspapers  to  be  selected  by 
the  governor.      [Section  4  amended  June  13,  1906.] 

Right  forfeited  to  do  business  in  this  state. 

Sec.  5.  At  the  hour  of  four  o'clock  p.  m.  of  the  thirtieth 
day  of  November  each  year  the  charters  of  all  delinciuent 
ilomestic  corporations  which  have  failed  to  pay  the  said  license 
tax,  together  with  said  penalty  for  such  delinquency,  shall  be 
forfeited  to  the  State  of  California,  and  the  right  of  all  delin- 
quent foreign  corporations  to  do  business  in  this  state  which 
have  failed  to  pay  said  license  lax,  together  with  the  i)enalty 
for  such  deliuquency,  shall  lie  likewise  forfeited.  [Section  5 
amended  June  13,  1906.] 

Revival   of  corporations  which   failed  to   pay  tax — List  to   county 
clerks — When     new     name     required — Right     to     use     former 
name. 
Sk<!.  6.      Any  corpornlioii  which  failed  to  jiay   I  he  license  tax 

and    penalty    required    by    the   act,   or   any    amendment    thereof. 

and  of  which  this  is  amendatory,   may   pay  all   the  said   license 


628  STATUTES    AT   LARGE. 

taxes  aud  penalties  prescribed  by  section  one  of  said  act  and  the 
amendments  thereto,  and  the  license  taxes  and  penalties  that 
would  have  accrued  if  such  corporation  had  not  forfeited  its 
charter  or  right  to  do  business  and  any  such  corporation  making 
such  payment  shall  be  relieved  from  the  forfeiture  pi'escribed 
by  the  act  of  which  this  act  is  amendatory,  and  all  persons  exer- 
cising the  powers  of  any  such  corporation  making  such  pay- 
ment shall  be  relieved  from  the  provisions  of  section  nine  of 
said  act  of  which  this  act  is  amendatory,  and  the  secretary  of 
state  shall  immediately  after  the  first  day  of  December,  1909, 
transmit  to  the  county  clerk  of  each  county  in  this  state  a  list 
of  the  cori)Orations  so  paying  pursuant  to  the  provisions  of  this 
section,  which  list  shall  be  by  said  county  clerk  filed  in  his 
office ;  provided,  the  rehabilitation  of  a  corporation  under  the 
provisions  of  this  act  shall  be  without  prejudice  to  any  action, 
defense  or  right  which  accrued  by  reason  of  the  original  for- 
feiture ;  and  provided,  that  in  case  the  name  of  any  corporation 
which  has  suffered  the  forfeiture  prescribed  by  the  act  of  which 
this  act  is  amendatory,  or  a  name  so  closely  resembling  the  name 
of  such  corporation  as  will  tend  to  deceive,  has  been  adopted 
by  any  other  corporation  since  the  date  of  said  forfeiture  then 
said  corporation  having  suffered  said  forfeiture  shall  be  relieved 
therefrom  pursuant  to  the  terms  of  this  section  of  this  act  only 
upon  the  adoption  by  said  coi-poration  seeking  revivor  of  a  new 
name,  and  in  such  case  nothing  in  this  act  contained  shall  be 
construed  as  permitting  such  corporation  to  be  revived  or  carry 
on  any  business  under  its  former  name ;  and  such  corporation 
sliall  haA'C  the  right  to  use  its  former  name  or  take  such  new 
name  only  upon  filing  an  application  therefor  with  the  secretary 
of  state  and  upon  the  issuing  of  a  certification  f<>  such  corpora- 
tion by  the  secretary  of  state  setting  forth  the  right  of  such 
corporation  to  take  such  new  name  or  use  its  former  name  as 
the  case  may  be  ;  provided,  however,  that  the  secretary  of  state 
shall  not  issue  any  certificate  permitting  any  corporation  to  take 
or  use  the  name  of  any  corporation  heretofore  organized  in  this 
state  and  which  has  not  suffered  the  forfeiture  prescribed  by  the 
act  of  which  this  act  is  amendatory  or  to  make  or  use  a  name 
so  closely  resembling  the  name  of  such  corporation  heretofore 
organized  in  this  state,  as  will  tend  to  deceive.  The  provisions 
of  title  nine,  part  three  of  Ihe  Code  of  Civil  Procedure  in  so  far 
ns  they  conflict  with   tliis  softion  of  this  net  are  not  ajiplicnhle 


TJOKNSE  TAX.  ft^O 

to  corporations  seeking  revivor  under  this  act.  [Section  G 
amended  March  19,  1909;  stats.  1909.  p.  4.^4;  in  effect  imme- 
diately.] 

Certain  corporations  exempt. 

Sec.  7.  All  t'(hicational,  reliiiious,  scientific  and  charitable 
corporations,  and  all  corporations  which  are  not  organized  for 
pecuniary  profit,  are  exempt  from  I  he  provisions  of  this  iicl. 
[Section  7  amended  June  13,  190G. ] 

List  of  corporations  which   have  forfeited  right  to  do   business. 

Sec.  8.  On  or  before  the  thirty-first  day  of  December  of  each' 
year  the  secretary  of  state  shall  make  a  list  of  all  domestic  cor- 
porations whose  charters  have  been  so  forfeited  and  of  all 
foreign  corporations  whose  right  to  do  business  in  this  state  has 
been  so  forfeited,  and  shall  transmit  a  certified  copy  thereof  to 
each  county  clerk  in  this  state,  who  shall  file  the  same  in  his 
office.      [Section  8  amended  June  13,  190<».] 

Unlawful   for  delinquent  corporations  to   do   business — Penalty. 

Sec.  9.  It  shall  be  unlawful  for  any  corporation,  delinquent 
under  Ihis  act,  either  domestic  or  foreign,  which  has  not  paid 
(he  license  tax  or  fee,  together  with  the  penalty  for  such  delin- 
•  luency,  as  in  this  act  prescribed,  to  exercise  tlie  powers  of  such 
corporation,  or  to  transact  any  business  in  this  state,  after  the 
thirtieth  day  of  November  next  following  the  delinquency.  Each 
and  every  person  who  exercises  any  of  the  powers  of  a  corpora- 
tion so  delinquent,  either  domestic  or  foreign,  which  has  not 
paid  the  license  tax,  together  with  the  penalty  for  such  delin- 
quency, or  who  transacts  any  business  for  or  in  behalf  of  any 
such  corporation,  after  the  thirtieth  day  of  November  next  fol- 
lowing the  delinquency,  shall  be  guilty  of  a  misdemeanor,  and 
upon  conviction  thereof  shall  be  punished  by  a  fine  of  not  less 
than  one  hundred  dollars  and  not  exceeding  one  thousand  dol- 
lars, or  by  imprisonment  in  the  county  jail  not  less  than  fifty 
days  nor  more  than  five  hundred  days,  or  by  both  such  fine  and 
imprisonment.      [Section  9  amended  June  13,  1906.] 

Maintenance  of  license  department. 

Sec.  10.  There  is  hereby  appropriated  out  of  any  money  in 
the  state  treasury  not  otherwise  appropriated  the  sum  of  twenty- 
seven  thousand  ($27,000)  dollars,  for  the  purpose  of  carrying 
out  llit^  objects  of  this  net,  to  be  used  by  the  secretary  of  state  in 


()30  STATITTES    AT    LARGE. 

the  employment  of  a  license  superintendent  and  cashier ;  one 
permanent  clerk  ;  such  other  clerks  from  time  to  time  as  may 
be  necessary  ;  for  the  purchase  of  the  necessary  desks,  furniture, 
stationery,  books,  postage,  and  for  the  necessary  printing,  rulifig, 
binding  and  materials  furnished  by  the  state  printing  office,  and 
for  all  other  necessary  incidental  expenses,  to  be  used  and 
expended  during  the  balance  of  the  fifty-sixth,  and  during  the 
(ifty-seventh  and  fifty-eighth  fiscal  years,  and  the  xtate  controller 
is  hereby  directed  to  draw  his  warrant  for  any  claim  against  said 
amount,  the  same  having  been  ai)proved  by  the  state  board  of 
examiners,  and  the  treasurer  is  hereby  directed  to  pay  the  same. 

Note. — §  10.  Provision  for  the  support  of  the  license  depart- 
ment is  now  made  in  the  general  appropriation  bill.  For  1909-10, 
see  stats.  1909,  p.  1110. 

Stockholders  to  settle  affairs  of  corporation  In  case  of  forfeiture. 
Sec.  10(7.  In  all  cases  of  forfeiture  under  the  provisions  of 
this  act,  the  directors  or  managers  in  office  of  the  affairs  of  any 
domestic  corporation,  whose  charter  may  l)e  so  forfeited,  or  of 
any  foreign  corporation  whose  right  to  do  business  in  this  state 
may  be  so  forfeited,  are  deemed  to  be  trustees  of  the  corporation 
and  stockholders  or  members  of  the  corporation  whose  power  or 
right  to  do  business  is  forfeited  and  have  full  power  to  settle 
the  affairs  of  the  corporation  and  to  maintain  or  defend  any 
action  or  proceeding  then  pending  in  behalf  of  or  against  any  of 
said  corporations,  or  to  take  such  legal  proceedings  as  may  be 
necessary  to  fully  settle  the  affairs  of  said  corporation,  and  such 
directors  or  managers,  as  such  trustees,  may  be  sued  in  any  of 
the  courts  of  this  state  by  any  person  having  a  claim  against 
any  of  said  coi'porations ;  proinded  ahcai/s,  that  no  action  pend- 
ing against  any  corporation  shall  abate  thereby,  but  may  be 
prosecuted  to  final  judgment  the  same  may  be  enforced  by 
execution  with  the  same  force  and  effect  and  in  like  manner  as 
though  no  forfeiture  had  occurred  ;  and  provided  further,  that 
where  judgment  has  been  entered  against  any  corporation  prior 
to  forfeiture  under  this  act,  that  notwithstanding  execution  may 
be  issued  thereon  and  the  property  of  said  corporation,  or  which 
may  come  into  the  hands  of  any  trustees  for  it  may  be  levied 
upon,  seized  and  sold  to  satisfy  the  same  with  like  force  and 
effect  as  though  such  forfeiture  has  not  occurred.  [Section  lOo 
ii mended  March  20,  1907.1 


LICEN.SE  TAX.  631 

Corporations^formed  during  certain   periods  to  pay  tax  for  cur- 
rent year.     [Repealed.] 
Sec.  10&.      [Section    106    repealed    March    19,    1909;    stats. 
1909,  p.  459  ;  in  effect  July  1,  1909.] 

Note. — §  10&.  See  section  2a,  added  March  19.  1909,  for  pro- 
visions for  payment  of  tax  by  new  corpoi-ations. 

Time  act  shall  take  effect. 

Skc.  13.  This  act  shall  take  effect  and  hi-  in  force  from  ;ind 
after  its  passage. 

(See  Ukiah  Cliiaraiitee  Co.  vs.  ('Kni/,  148  Cal.,  p.  2~tC): 
constilutioval :  see  Kaiser  Land  and  Fruit  (Jo.  vs.  Viirri/,  Su- 
preme Court  decision  of  .Tune  15,  11^)00,  XXXVII  Cal.  Dec, 
p.  522.) 


LIMITATION  OF  ACTIONS. 

An   act  respecting  the  limitation  of  actions. 

Approved  Marcli  11,   1872;  stats.    1S71-72,  p.   :n  9.      Sitperspded 
(y  Code  CMv.   Proc.   §   :'>1S.      (.See  pase   3S2.   (tiitr.) 


An  act  supplementary  to  an  act  entitled  an  act  defining  the  time 
for  commencing  civil  actions,  passed  April  twenty-second, 
eighteen  hundred  and  fifty. 

Approved  March  16,  1872;  stats.   1871-72,  p.  401.     Codified  and 
superseded  by  Code  Ci\'.   Proc.  S  318.      (See  page  3  82,  ante.) 


LOANS  ON  PERSONAL  PROPERTY. 

See  liroLcr.'i. 


MECHANIC  INSTITUTES. 

SiM'  Chiitnhern  of  Commerce. 


<'>P.2  STATTITKS    AT   T.AROE. 

MINES  AND  MINING. 

Sco  Hoiirft  of  Lahor,  for  act  of  1000.  regulating,  in  miiips. 
An  act  for  the  protection  of  miners. 

AppioviMl  Maicli    1(1,    1X72;   slals.    1S71-2,   ii.   -11  ;^. 

'I'hr  people  of  the  State  of  California,  represented  in  senate  and 
asse^nhly,  do  emtct  as  follotvs: 

Provision  for  second  mode  of  egress  from  mines  of  certain 
depth. 
Section  1.  It  shall  not  be  lawful  for  any  corporation,  asso- 
ciation, owner,  or  owners  of  any  quartz-mining  claims  within 
the  State  of  California,  where  such  corporation,  association, 
owner  or  owners  employ  twelve  men  daily,  to  sink  down  into 
such  mine  or  mines  any  perpendicular  shaft  or  incline  beyond 
a  depth  from  the  surface  of  three  hundred  feet  without  provid- 
ing a  second  mode  of  egress  from  such  mine,  by  shaft  or  tunnel, 
to  connect  with  the  main  shaft  at  a  depth  of  not  less  than  one 
luindred  feet  from  the  surface. 

Escape-shaft. 

Sec.  2.  It  shall  be  the  duty  of  each  corporation,  association, 
owner,  or  owners  of  any  quartz  mine  or  mines  in  this  state, 
where  it  becomes  necessary  to  work  such  mines  beyond  the 
depth  of  three  hundred  feet,  and  where  the  number  of  men 
employed  therein  daily  shall  be  twelve  or  more,  to  proceed  to 
sink  another  shaft  or  construct  a  tunnel  so  as  to  connect  with 
the  main  working-shaft  of  such  mine  as  a  mode  of  escape  from 
underground  accident,  or  otherwise.  And  all  corporations, 
associations,  owner,  or  owners  of  mines  as  aforesaid,  working 
at  a  greater  depth  than  three  hundred  feet,  not  having  any  other 
mode  of  egress  than  from  the  main  shaft,  shall  proceed  as  herein 
provided. 

Liabilities — Damages. 

Sec.  3.  When  any  corporation,  association,  owner,  or  owners 
of  any  quartz  mine  in  this  state  shall  fail  to  provide  for  the 
proper  egress  as  herein  contemplated,  and  where  any  accident 
shall  occur,  or  any  miner  working  therein  shall  be  hurt  or 
injured,  and  from  sucli  in.iury  might  have  escaped  if  the  second 


MINES    AND   MINING.  633 

mode  of  egress  had  existed,  such  corporation,  association,  owner 
or  owners  of  the  mine  where  tlie  injuries  sliall  have  occurred 
shall  be  liable  to  the  person  injured  in  all  damages  that  may 
accrue  by  reason  thereof ;  and  an  action  at  law  in  a  court  of 
competent  jurisdiction  may  be  maintained  against  the  owner  or 
owners  of  such  mine,  which  owners  shall  be  jointly  or  severally 
liable  for  such  damages.  And  where  death  shall  ensue  from 
injuries  received  from  any  negligence  on  the  part  of  the  owners 
thereof,  by  reason  of  their  failure  to  comply  with  any  of  the 
provisions  of  this  act.  the  heirs  or  relatives  surviving  the 
deceased  may  commence  an  action  for  the  recovery  of  such 
damages  as  provided  by  an  act  entitled  an  act  requiring  com- 
pensation for  causing  death  by  wrongful  act,  neglect,  or  default, 
approved  April  twenty-sixth,  eighteen  hundred  and  sixty-two. 

Time  act  shall  take  effect. 

Sec.  4.     This  act  shall  take  eircct  aiul  bo  in  force  six  months 
from  and  after  its  ])assage. 


An  act  for  the  protection  of  coal   mines  and  coal  miners. 

Approved  March   27,   1S74  ;   stats.    1S73-4.  p.   726. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Map  of  mine. 

Section  1.  The  owner  or  agent  of  every  coal  mine  shall 
make  or  cause  to  be  made  an  accurate  map  or  plan  of  the  work- 
ings of  .such  coal  mine,  on  a  scale  of  one  hundred  feet  to  the 
inch. 

Copies  for  inspection. 

Sec.  li.  A  true  cop^\'  of  whicli  map  or  i)l;in  shall  be  kept  at 
the  office  of  the  owner  or  owners  of  Hk;  mine,  open  to  the  inspec- 
tion of  all  persons,  and  one  copy  of  such  map  or  plan  shall  be 
kept  at  the  mines  by  the  agent  or  other  person  having  charge 
of  the  mines,  open  to  the  inspection  of  the  workmen. 

Two  outlets  to  be  provided. 

Sec.  .'i.  The  owner  or  agent  of  every  coal  mine  shall  provide 
at  least  two  shjjfts,  or  slopes,  or  outh-ts,  separated  by  natural 
strata  of   not    less   than   one   hundred   and    lifly    feet    in    breadth, 


634  STATUTES    AT   LARGE. 

Iiy  which  shafts,  slopes,  or  outlets  distinct  means  of  ingress  and 
("Sress  are  always  available  to  the  persons  employed  in  the  coal 
mine ;  provided,  that  if  a  new  tunnel,  slope,  or  siiaft  will  be 
required  for  the  additional  openinj;,  work  upon  the  same  shall 
commence  immediately  after  the  passage  of  this  act,  and  con- 
tinue until  its  final  completion,  with  reasonable  dispatch. 

Ventilation  of  mine. 

Sec.  4.  The  owner  or  agent  of  every  coal  mine  sliall  provide 
and  establish  for  every  such  mine  an  adequate  amount  of  venti- 
lation, of  not  less  than  fifty-five  cubic  feet  per  second  of  pui'e 
air,  or  thirty-three  hundred  feet  per  minute,  for  every  fifty  men 
at  work  in  such  mine,  and  as  much  more  as  circumstances  may 
require,  which  shall  be  circulated  through  to  the  face  of  each  and 
every  working  place  throughout  the  entire  mine,  to  dilute  and 
render  harmless  and  expel  therefrom  the  noxious,  poisonous 
gases,  to  such  an  extent  that  the  entire  mine  shall  be  in  a  fit 
state  for  men  to  work  therein,  and  be  free  from  danger  to  the 
health  and  lives  of  the  men  by  reason  of  said  noxious  and 
poisonous  gases,  and  all  workings  shall  be  kept  clear  of  standing 
gas. 

Inside  overseer  to  be  employed — Duties. 

Sec.  ;j.  To  secure  the  ventilation  of  every  coal  mine,  and 
I)rovide  for  the  health  and  safety  of  the  men  employed  therein, 
otherwise  and  in  every  respect,  the  owner,  or  agent,  as  the  case 
nuiy  be,  in  charge  of  every  coal  mine,  shall  employ  a  competent 
and  practical  inside  overseer,  who  shall  keep  a  careful  watch 
over  the  ventilating  apparatus,  over  the  air  ways,  the  traveling 
ways,  the  pumps  and  sumps,  the  timbering,  to  see  as  the  miners 
advance  in  their  excavations  that  all  loo.se  coal,  slate,  or  rock 
overhead  is  carefully  secured  against  falling ;  over  the  arrange- 
ments for  signaling  from  the  bottom  to  the  top,  and  from  the 
top  to  the  bottom  of  the  shaft  or  slope,  and  all  things  connected 
with  and  appertaining  to  the  safety  of  the  men  at  work  in  the 
mine.  He,  or  his  assistants,  shall  examine  carefully  the  work- 
ings of  all  mines  generating  explosive  gases,  every  morning 
before  the  miners  enter,  and  shall  ascertain  that  the  mine  is 
free  from  danger,  and  thf  workmen  shall  not  enter  the  mino 
until  .such  examination  has  been  niiuh-  ;ind  reportod.  and  the 
cause  of  danger,  if  any,  l)e  removed. 


MINES   AND   MINING.  635 

Additional  duties. 

Hkv.  ti.  The  oxersoer  slinll  sen  that  tlic  lioistiug  machinery 
is  kept  constantly  in  repair  and  ri'uily  for  use,  to  hoist  the  work- 
men in  or  out  of  the  mine. 

Application  of  word  "owner." 

Sec.  7.  The  word  "owner"  in  this  act  shall  apply  to  lessee 
as  well. 

Right  of  action. 

Sec.  8.  For  any  injury  to  person  or  i»roperty  occasiou»Ml  by 
any  violation  of  this  act,  or  any  willful  failure  to  comply  with 
its  provisions,  a  right  of  action  shall  accrue  to  the  party  injured 
for  any  direct  damages  he  or  she  may  have  sustained  t]ieri'l)y. 
before  any  court  of  competent  jurisdiction. 

Liability. 

Sec.  9.  For  any  willful  failure  or  negligence  on  the  part  of 
the  overseer  of  any  coal  mine,  he  shall  be  liable  to  conviction  of 
misdemeanor,  and  punished  according  to  law  ;  provided,  that  if 
such  willful  failure  or  negligence  is  the  cause  of  the  death  of 
any  person,  the  overseei",  upon  conviction,  shall  be  deemed  guilty 
of  manslaughter. 

Inspection  of  boilers. 

Sec.  10.  All  boilers  used  for  generating  steam  in  and  about 
coal  mines  shall  l)e  ki-pt  in  good  order,  and  the  owner  or  agent 
thereof  shall  liavc  tiifui  examined  and  inspected,  by  a  competent 
boilermaker,  as  (il'leii  as  once  in  llnee  months. 

Not  to  apply  to  opening  of  mine. 

Sec.  ll.  This  ad  shall  noi  ajiply  to  (H»ening  a  new  coal 
mine. 

Time  act  shall  take  effect. 

Sh;('.    V_'.      'I'liis  aet    shall    lake  elTecl    immediately. 


An  act  for  the  better  protection  of  the  stockholders  in  corpora- 
tions formed  under  the  laws  of  the  State  of  California,  for  the 
purpose  of  carrying  on  and  conducting  the  business  of  mining. 

Approved  March  TO.  1874;  stats.  1873-4,  p.  866.  Amended, 
stats.  1880.  p.  134;  1S;»7,  p.  38.  Portion  of  amendatory  act  of 
1897  tmconstitutional  (.Johnson  vs.  Tdutphaus,  127  Cal.  604). 
Remaining  poi'tion  codified  in  Civ.  C.  §§  •')88,  58!t,  TiiJO,  as  adoiited 
in  1  :•();-,. 


G36  STATUTES    AT    LARGE. 


An  act  for  the  further  protection  of  stockholders  in  mining 
companies. 
Approved  April  23,  1880;  stats.  1880,  p.  131.  Amended,  stats. 
1897,  p.  96.  Unconstitutional  as  to  section  3  (Krause  vs.  Dur- 
hrow,  127  Cal.  681).  See  Lucy  vs.  Gun)}.  144  Cal.  511.  Re- 
pealed, stats.   1905,  p.   74. 


An  act  to  establish  a  uniform  system  of  mine  bell  signals,  to  be 
used  in  all  the  mines  operated  in  the  State  of  California,  and 
for  the  protection  of  miners. 

Ajiprovcd  March  8,   1893;  stats.   1893,   p.   %■!. 

I'lic  people  of  the  mate  of  California,  represented  in  senate  and 
assemhlij,  do  enact  as  follows: 

Code  or  system   of  mine  bell  signals. 

Section  1.  Every  person,  comiKui.v,  corporation,  ur  indi- 
\i(lual,  operating  any  mine  within  tlie  State  of  California — 
sold,  silver,  copper,  lead,  coal,  or  any  other  metal  or  substance 
where  it  is  necessary  to  use  signals  by  means  of  bell  or  other- 
wise, for  shafts,  inclines,  drifts,  crosscuts,  tunnels,  and  under- 
grotmd  workings — shall,  after  the  passage  of  this  bill,  adopt, 
use,  and  put  in  force  the  following  system  or  code  of  mine  bell 
signals,  as  follows : 

1  bell,  to  hoist.     (See  Rule  2.) 

1  bell,  to  stop  if  in  motion. 

2  bells,  to  lower.     (See  Rule  2.) 

3  bells,  man  to  be  hoisted;  run  slow.      (  Sc'  Kiilc  2.) 

4  bells,  start  pump,  if  not  running,  or  stoji  pump  if  running. 

1  — H  bells,  start  or  stop  air  com))ressor. 
."i  bi'lls.  send  down  tools.      (See  Rule  4.) 

(i   hells,  send  down  timbers.      (Sec  Ride  4.) 

7   bells,  accident;   ni()\c  l.nickcl    oi'  cage  by   M'l-hal   <irilcrs  uuly. 

1 — -4  bells,  foreman  wanted. 

2 — -1  —  1  bells,  done  hoisting  until  called. 

2  —  1  ■ —  2  bells,  done  hoisting  for  the  day. 

2- — 2  —  2  bells,  change  buckets  from  ore  to  water,  ov  ^•ice 
versa. 

3  —  2  —  1   bells,  ready  to  shoot  in  the  shaft.     (See  Rule  3.) 
Engineer's  signal,   that  he  is  ready   to  hoist,   is  to  raise  the 

bucket  or  cage  two  feet  and  lower  it  again.     (See  Rule  3.) 

Levels   shall    bu   dcsigna  led    and    in*<ci-(ed    in    iiulicc    licrciiiaf  lci- 

Illrllliolli'd.        (  Sri'    Klllr    ."..  ) 


MINES   AND   MINING.  637 

Rules. 

Sec.  1.'.  For  the  yuryose  of  enforciug  and  yroyerly  uiick'r- 
staudiug  the  above  code  of  signals,  the  following  rules  are  hereby 
established  : 

RuJe  1 — In  giving  signals  make  strokes  on  bell  at  regular 
intervals.  The  bar  ( — )  must  take  the  same  time  as  for  one 
stroke  of  the  bell,  and  no  more.  If  timber,  tools,  the  foreman, 
bucket,  or  cage,  are  wanted  to  stoy  at  any  level  in  the  mine, 
signal,  by  number  of  strokes  on  the  bell,  the  number  of  the  level 
first  before  giving  the  signal  for  timber,  tools,  etc.  Time  between 
.signals  to  be  double  bars  ( ).    Examyles: 

G  —  —  5,  wouJd  mean  stoy  at  sixth  level  with  tools. 

4 -1  —  1  —  1 1.    would    mean    stoy    at    fourth    levi'l. 

man  on,  hoist.  • 

2 1 — 4.  would  mean  stoy  at  second  level  with  foreman. 

Rule  2 — No  yerson  must  get  off  or  on  the  bucket  or  cage 
while  the  same  is  in  motion.  When  men  are  to  be  hoisted,  give 
the  signal  for  men.  Men  must  then  get  on  bucket  or  cage, 
Ihcii  give  the  signal  to  hoist.  Bell  cord  must  be  in  reach  of  man 
on  the  bucket  or  cage  at  stations. 

Rule  3 — After  signal  "Ready  to  shoot  in  shaft,"  engineer 
must  give  his  signal  when  he  is  ready  to  hoist.  Miners  must 
then  give  the  signal  of  "Men  to  be  hoisted."  then  "syit  fuse,"  get 
into  the  bucket,  and  give  the  signal  to  hoist. 

Rule  4 — All  timbers,  tools,  etc.,  "longer  than  the  deylh  of 
the  bucket,"  to  be  hoisted  or  lowered,  must  be  securely  lashed  at 
the  uyyer  end  to  the  cable.  Miners  must  know  they  will  ride  uy 
or  down  the  sliaft  without  catching  on  rt)cks  or  timbers  and  be 
thrown  out. 

Rule  o — The  foreman  will  see  that  one  yriuted  sheet  of  these 
signals  and  rules  for  each  level  and  one  for  the  engine-room  are 
attached  to  a  board  not  less  than  twelve  inches  wide  by  thirty-six 
inches  long,  and  securely  fasten  the  board  u])  where  signals  can 
i>e  easily  read  at  the  ylaces  above  stated. 

Rule  6 — The  above  signals  and  rules  uuist  be  obeyed.  Any 
\iolation  wnll  be  sufficient  grounds  for  discharging  the  yarty  or 
l)arties  so  doing.  No  person,  company,  coryoration,  or  indi- 
viduals oyerating  any  mine  within  the  State  of  California,  shall 
be  resyonsible  for  accidents  that  may  hayyen  to  men  disobeying 
the  above  rules  and  signals.  .Said  nntic<^  .-uid  rules  shall  be 
signed  ])y  the  iierson  or  suyeriuteudiMit  ha\ing  charge  of  (lie 
iiiiiic  who  siiall  dt'signatc  llic  ii;ime  of  (lie  coryoration  or  the 
(ivNiicr  iif  I  he  ijiinc. 


G38  STATUTES    AT   LARGE. 

Responsibility. 

Skc.  o.  Any  jj^tsou  di-  cuiupaiiy  failinji  to  carry  out  any  of 
(Iio  provisions  of  tiiis  act  sliall  be  responsible  for  all  damages 
arising  to  or  incurred  by  any  person  working  in  said  mine  during 
the  time  of  such  failure. 

Time  act  shall  take  effect. 

Sec.  4.     This  act  shall  take  effect  iniiiit'dlMtfly. 

See  Maiiiiiii;/  vs.  .!/(/).  Coiisoliilufcd  (lold  Miiiiiif/  Co.,  149  Cal. 


MUNICIPAL    CORPORATIONS. 

An     act     to     provide     for    the     organization,     incorporation,     and 
government    of    municipal    corporations. 

Approved   March    13,    1883:    stats.    1883,    p.    93. 

The  iicople  of  the  State  of  California,  represented  in  senate  ami 
assemVJy,  do  enae't  as  follows: 

♦  ♦  *  *  *  :ii  :!: 

Ed.  Note. — Cities  eligible,  by  reason  of  their  population,  for 
incorporation  as  cities  of  the  first,  first  and  one  half,  second, 
tliird,  and  fourth  classes,  as  well  as  some  cities  in  the  fifth  class, 
containing  over  3,500  inhabitants,  are  operating  under  their  own 
charters,  under  the  provisions  of  article  XI,  set-tions  8  and  SV1> 
(if  the  Constitution  of  California. 

('ii.\i"n:u  VI. 

MUNICIPAL    CORPORATIONS    OF    THE    FIFTH    CLASS. 

[Cities  iiHviiiK  ;i  pupulatiun  i>f  more  than  .'l.flOd  ;ni(]  not 
exceeding   ID.dOd   inli.-iliitanls.  | 

Powers   of    boards   of   trustees. 

[Subdivisions  3  and  13  provide  for  granting  contracts  and 
franchises.] 

Sec.  7(j4.  The  board  of  trustees  of  such  city  shall  have 
power  : 

1.  To  jiass  ordinances  not  in  c(jnHict  with  the  constitution 
:iiid   laws  of  this  state,  or  of  the   United   Slates. 

■_'.  To  purchase,  leas<!,  or  receive  sucli  real  estate  and  per- 
sonal   property    as    may    he    lu'cessary    or    jiroper    foi-    iiiiiniciiial 


MUNICIPAL    CORPORATIONS.  639 

purijos.'s.  ;in(l  to  control,  dispose  of,  and  convfy  the  same  for 
the  benefit  of  the  city;  provided,  that  they  shall  not  have  any 
power  to  sell  or  convey  any  portion  of  any  water  front ;  but 
may  rent  such  water  front  for  a  term  not  exceeding  ten  years 
for  the  purpose  of  erecting-  bath  houses  thereon. 

3.  To  contract  for  supplying  the  said  city  with  water,  and 
gas,  and  electric  lights  or  other  lights  for  municipal  purposes ; 
to  purchase,  lease,  construct  or  otherwise  accjuire  water  works, 
electric  plants,  and  gas  works  or  plants  or  any  of  same,  and  all 
machinery,  conductors,  lands,  api)liances  and  all  other  things 
needed  therefor,  and  to  supply  said  city  with,  and  to  sell  to  the 
inhabitants  of  said  city,  gas,  electric  light  or  other  light,  and 
lieat.  and  power;  protndcd  that  no  such  purchase  or  lease  shall 
be  made  unless  the  question  of  accjulriug  such  property  is  sub- 
mitted to  the  voters  of  such  city  in  the  same  manner  as  other 
propositions,  at  a  general  or  special  municipal  election,  and  a 
majority  of  the  electors,  voting  at  such  election  shall  vote  in 
favor  of  such  proposition. 

4.  To  establish,  build  and  repair  bridges ;  to  establish,  lay 
out,  alter,  keep  open,  open,  improve  and  repair  streets,  side- 
walks, alleys,  squares,  and  other  public  highways  and  places 
within  the  city,  and  to  drain,  sprinkle,  oil,  and  light  the  same ; 
to  remove  all  obstructions  therefrom ;  to  establish  the  grades 
thereof;  to  grade,  pave,  macadamize,  gravel  and  curb  the  same 
in  whole  or  in  part,  and  to  construct  gutters,  culverts,  sidewalks, 
and  crosswalks  therein,  or  upon  any  part  thereof;  to  cause  to 
be  planted,  set  out,  and  cultivated,  shade  trees  therein;  and 
generally  to  manage  and  control  all  such  highways  and  places. 

5.  To  establish,  construct  and  maintain  drains  and  sewers, 
and  to  provide  by  ordinance  for  a  general  system  of  sewers, 
and   the  expense   of  building  and  maintaining  the  same. 

0.  To  provide  fire  engines  and  all  other  necessary  or  proper 
apparatus  for  the  prevention  and  extinguishment  of  fires. 

7.  To  impose  and  collect  from  every  male  inhabitant  between 
the  ages  of  twenty-one  and  sixty  years,  an  annual  street  poll 
tax,  not  exceeding  two  dollars,  and  no  other  road  poll  tax  shall 
be  collected  within  the  limits  of  such  city;  provided,  that  any 
member  of  a  vnlniitfcr  tire  comi)any  in  sneti  city  shall  be  oxempi 
Iroiii  such  tax. 

N.  To  imiiusi'  and  collect  an  .iimu:!!  liicnsi',  iidI  exceeding 
Iwo  dollars  on  every  dog  owned  or  Iiarbored  within  tlii>  limits 
iif  the  city. 


(>40  STATUTES    AT   LARGE. 

9.  To  levy  and  collect  annually  a  property  tax,  which  shall 
be  apportioned  as  follows :  For  the  general  fund,  not  exceeding 
sixty  cents  on  each  one  hundred  dollars ;  for  street  fund,  not 
exceeding  thirty  cents  on  each  one  hundred  dollars ;  for  school 
fund,  not  exceeding  twenty-five  cents  on  each  one  hundred 
dollars ;  for  sewer  fund,  not  exceeding  ten  cents  on  each  one 
hundred  dollars.  The  levy  for  all  purposes  for  any  one  year 
for  all  purposes  to  which  such  funds  are  applicable  shall  not 
exceed  one  dollar  on  each  one  hundred  dollars  of  the  assessed 
value  of  all  real  and  personal  property  within  such  city. 

10.  To  license,  for  purposes  of  regulation  and  revenue,  all 
and  every  kind  of  business,  including  the  sale  of  intoxicating 
liquors,  authorized  by  law  and  transacted  or  carried  on  in  such 
city,  and  all  shows,  exhibitions,  and  lawful  games  carried  on 
therein  ;  to  fix  the  rates  of  licenses  upon  the  same,  and  to  pro- 
vide for  the  collection  of  the  same  by  suit  or  othemvise. 

11.  To  improve  the  rivers  and  streams  flowing  through  such 
city,  or  adjoining  the  same ;  to  widen,  straighten,  and  deepen 
the  channels  thereof,  and  to  remove  obstructions  therefrom ;  to 
improve  the  water  front  of  the  city,  and  to  construct  and  main- 
tain embankments  and  other  works  to  protect  such  city  from 
overflow. 

12.  To  erect  and  maintain  buildings  for  municipal  purposes. 

13.  To  permit,  under  such  restrictions  as  they  may  deem 
proper,  the  laying  of  railroad  tracks  and  the  running  of  cars 
drawn  by  horses,  steam,  electricity,  or  other  power  thereon, 
and  the  laying  of  gas  or  water  pipes  in  the  public  streets,  and 
to  construct  and  maintain,  and  to  permit  the  construction  and 
ninintenance  of  telephone,  telegraph  and  electric  light  lines 
t  herein. 

14.  In  its  discretion  to  divide  the  city,  by  ordinance,  into  a 
(•(jMveiiient  number  of  wards,  not  exceeding  ■  five,  to  fix  the 
lioundarios  thereof,  and.  to  change  the  same  from  time  to  time: 
liroviilfd,  that  no  change  in  the  boundaries  of  any  ward  shall 
be  made  within  sixty  days  next  before  the  date  of  said  general 
launicipal  election,  nor  within  twenty  months  after  the  same 
shall  have  been  established  or  altered.  Whenever  such  city 
shall  be  divided  into  wards,  the  board  of  trustees  shall  designate 
by  ordinance  the  number  of  trustees  to  be  elected  from  each 
ward,  apportioning  the  same  in  proportion  to  the  population 
of  such  ward;  and  thereafter  the  trustees  so  designated  shall 
be  elected   by   the  ijualifiod   electors   resident   in   such   ward,   or 


MTTNICTPAL    OORPORATTONS.  fi41 

by  the  general  vote  of  the  whole  city,  as  may  be  designated  in 
such  ordinance. 

15.  To  appoint  and  remove  such  policemen  and  such  other 
subordinate  officers  as  they  may  deem  proper,  and  to  fix  their 
duties  and  compensation. 

IG.  To  impose  fines,  penalties,  and  forfeitures  for  any  and 
all  violations  of  ordinances,  and  for  any  breach  or  violation  of 
any  ordinance  to  fix  the  penalty  by  fine  or  imprisonment,  or 
both,  but  no  such  fine  shall  exceed  three  hundred  dollars,  nor 
the  term  of  such  imprisonment  exceed  three  mouths. 

17.  To  cause  all  persons  imprisoned  for  violation  of  any 
ordinance  to  labor  on  the  streets,  or  other  property  or  works 
within  the  city. 

18.  To  establish  fire  limits,  and  the  same  to  alter  at  pleasure  ; 
to  regulate  or  prevent  the  erection  of  wooden  or  other  buildings 
or  structures  of  combustible  materials ;  to  i-egulate  the  con- 
struction of  all  buildings,  shades,  awnings,  signs,  or  any 
structure  of  a  dangerous  or  unsafe  character ;  to  provide,  l)y 
regulation,  for  the  prevention  and  summary  removal  of  all  filth 
and  garbage  in  the  streets,  sloughs,  alleys,  backyards  or  public 
grounds  of  such  city,  or  elsewhere  therein  ;  to  regulate  or  pro- 
hibit the  storage  of  gunpowder  and  combustible  or  explosive 
materials  of  every  kind  and  nature  within  the  city  limits,  and 
to  prescribe  the  limits  in  which  the  same  may  be  kept  or  stored. 

19.  To  do  and  perform  any  and  all  other  acts  and  things 
necessary  and  proper  to  carry  out  the  provisions  of  this  chapter, 
and  to  exact  and  enforce  within  the  limits  of  such  city  all  other 
local,  police,  sanitary,  and  other  regulations  as  do  not  conflict 
with  general  laws.  [Sec.  7G4  amended  April  1(1,  1909;  stats. 
1909.  p.  9.'>7:   in  effect  immediately.] 


CHAPTER  VII. 

MUNICIPAL    CORPORATIONS    OF    THE    SIXTH    CLASS. 

[(MtioK  linvins  a  p()p\ilation   of  not  I'xctHMliiiy  ;;,000   inlialiitant.s.] 

Powers  of   board   of   trustees. 

[Subdivisions    15    and    13    provide    for    granting    contracts    and 
franchises.] 

Sec.    862.      The    board    of    trustees    of    said    city    shall    have 
power : 


642  STATUTES    AT  LARGE. 

1.  To  pass  ordinances  not  in  conflict  with  the  constitution 
and  laws  of  this  state  or  of  the  United  States. 

2.  To  purchase,  lease,  or  receive  such  real  estate  situated 
inside  or  outside  of  the  city  limits  and  personal  property  as 
may  be  necessary  or  proper  for  municipal  purposes,  and  to 
control,  dispose  of,  and  convey  the  same  for  the  benefit  of  the 
city  or  town ;  provided,  they  shall  not  have  power  to  sell  or 
convey  any  portion  of  any  water  front. 

o.  To  contract  for  supplying  the  city  or  town  with  water  for 
municipal  purposes,  or  to  acquire,  construct,  repair,  and  manage 
l)umps,  aqueducts,  reservoirs,  or  other  works  necessary  or 
]n-oper  for  supplying  water  for  the  use  of  such  city  or  the 
inhabitants,   or  for  irrigating  purposes   therein. 

4.  To  establish,  build  and  repair  bridges ;  to  establish,  lay 
out,  alter,  keep  open,  improve,  and  repair  streets,  sidewalks, 
alleys,  and  other  public  highways,  squares  and  parks,  and 
places  within  the  city  or  town,  and  to  drain,  sprinkle,  oil,  and 
light  the  same ;  to  remove  all  obstructions  therefrom  ;  to  estab- 
lish the  grades  thereof ;  to  grade,  pave,  macadamize,  gravel,  and 
curb  the  same,  in  whole  or  in  part,  and  to  construct  gutters, 
culverts,  sidewalks,  and  crosswalks  therein,  or  on  any  part 
thereof ;  to  cause  to  be  planted,  set  out,  and  cultivated,  shade 
trees  therein ;  and  generally  to  manage  and  control  all  such 
highways  and  places  ;  and  in  the  exercise  of  the  powers  herein 
granted  to  expend,  in  their  discretion,  the  ordinary  annual 
income  and  revenue  of  the  municipality  in  payment  of  the  costs 
and  expenses  of  the  whole  or  any  part  of  such  work  or 
improvement. 

f).  To  construct,  establish,  and  maintain  drains  and  sewers. 

(i.  To  provide  fire  engines  and  all  other  necessary  and  proper 
aiJi)aratus  for  the  prevention  and  extinguishment  of  fires. 

7.  To  impose  on  and  collect  from  every  male  inhabitant 
between  the  ages  of  twenty-one  and  sixty  years,  an  annual 
street  poll  tax,  not  exceeding  two  dollars  ;  and  no  other  road 
poll   tax  shall  be  collected  within  the  limits  of  the  city. 

8.  To  impose  and  collect  an  annual  license  not  exceeding 
two  dollars  on  every  male  dog,  and  four  dollars  on  every  female 
dog  owned  or  harbored  within  the  limits  of  the  city. 

!J.  To  levy  and  collect  annually  a  proijerty  tax,  which  shall 
not  exceed  one  dollar  on  each  one  hundred  dollars. 

10.  To  license,  for  the  purpose  of  revenue  and  regulation,  all 
and   every   kind   of  business   authorized   by   law   and   transacted 


MUNICIPAL    COKPOEATIONS.  643 

and  caiTied  on  in  such  city  or  town,  and  all  shows,  exhibitions, 
and  lawful  games  carried  on  therein  ;  to  fix  the  rates  of  license 
tax  upon  the  same,  and  to  provide  for  the  collection  of  the 
same  by  suit  or  otherwise. 

11.  To  improve  the  rivers  and  streams  flowing  through  such 
city  or  adjoining  the  same;  to  widen,  straighten,  and  deepen 
the  channels  thereof,  and  remove  obstructions  therefrom ;  to 
iiai)rove  the  water  front  of  the  city;  to  construct  and  maintain 
i-mbankmenls  and  other  works,  to  protect  such  city  from  over- 
flow ;  and  to  acquire,  own,  construct,  maintain,  and  operate  on 
any  lands  bordering  on  any  navigable  bay,  lake,  inlet,  river, 
creek,  slough,  or  arm  of  the  sea  within  the  corporate  limits  of 
such  city  or  contiguous  thereto,  wharves,  chutes,  piers,  break- 
waters, bath-houses,  and  life-saving  stations. 

12.  To  erect  and  maintain  buildings  for  municipal  purposes, 
and  to  acquire  and  maintain  cemeteries,  situated  inside  or  out- 
side of  said  city. 

13.  To  acquire,  own,  construct,  maintain,  and  ojierate  street 
railways,  telephone  and  telegraph  lines,  gas  and  other  works 
for  light,  power,  and  heat ;  public  libraries,  museums,  gymna- 
siums, parks,  and  baths,  and  to  permit  under  such  restrictions 
as  they  may  deem  proper,  the  laying  of  railroad  tracks  and  the 
i-unniug  of  cars  drawn  by  horses,  steam,  or  other  power  thereon, 
and  the  laying  of  gas  and  water  pipes  in  the  public  streets,  and 
to  permit  the  construction  and  maintenance  of  telegraph  and 
telephone  lines  therein. 

14.  To  impose  fines,  penalties,  and  forfeitures  for  any  and  all 
violations  of  ordinances;  and  for  any  breach  or  violation  of  any 
ordinance ;  to  fix  the  penalty  by  fine  or  imprisonment,  or  both  ; 
but  no  such  fine  shall  exceed  three  hundred  dollars,  nor  the 
term  of  imprisonment  exceed  three  months. 

15.  To  cause  all  persons  imprisoned  for  violation  of  any 
ordinance  to  labor  on  the  streets,  or  other  public  property,  or 
works  within  the  city. 

10.  To  establish  and  maintain  fire  limits,  and  regulate  build- 
ing and  construction  and  removal  of  buildings  within  tlie 
municipality. 

17.  To  issue  subpoenas  for  the  attendance  of  witnesses,  or 
the  production  of  books  or  other  documents,  for  the  purpose  of 
producing  evidence  or  testimony  in  any  action  or  proceeding 
pending  before  the  board  of  trustees,  which  subpcenas  must  be 
signed    by    (he    president   of    the    board    of    trustees   and    attested 


(144  STATUTES    AT   LARGE. 

by  the  city  clerk  and  may  be  served  in  the  same  manner  as 
subpoenas  are  served  in  civil  actions.  Whenever  any  person 
duly  subpoenaed  to  appear  and  give  evidence,  or  to  produce  any 
liooks  or  any  documents  as  herein  provided,  shall  neglect  or 
refuse  to  appear,  or  to  produce  such  books  or  documents,  as 
requirt'd  l)y  such  subpoena,  or  shall  refuse  to  testify  before  sucli 
hoard,  or  to  answer  any  questions  which  a  majority  tliereof 
shall  decide  to  be  proper  and  pertinent,  it  shall  be  the  duty  of 
the  president  of  the  board  to  report  the  fact  to  the  judge  of  the 
superior  court  of  the  county,  who  shall  thereupon  issue  an 
attachment  in  the  form  usual  in  the  court  of  which  he  shall  be 
judge,  directed  to  the  sheriff  of  the  county  where  such  witness 
was  required  to  appear  and  testify,  commanding  the  said  sheriff 
to  attach  such  person,  and  forthwith  bring  him  before  the  judge 
by  whose  order  such  attachment  was  issued.  On  the  return  of 
the  attachment  and  the  production  of  the  body  of  the  defendant, 
the  said  judge  shall  have  jurisdiction  of  the  matter,  and  the 
person  charged  may  purge  himself  of  the  contempt  in  the  same 
way,  and  the  same  proceedings  shall  be  had,  and  the  same 
penalties  may  be  imposed,  and  the  same  punishment  inflicted  as 
in  the  case  of  a  witness  subpoenaed  to  appear  and  give  evidence 
on  the  trial  of  a  civil  cause  before  a  superior  court. 

IS.  To  expend  such  sum  as  the  board  of  trustees  shall  deem 
proper,  not  to  exceed  five  per  cent  of  the  property  tax  levy  in 
any  one  fiscal  year,  for  music  and  promotion. 

19.  To   do   and   perform   any   and   all   other   acts   and    things 

necessary   or   proper   to   carry   out   the   provisions   of   this   act. 

[See.   862   amended   March   10,   ItMX) ;   stats.   1909,    p.   420;    in 

effect  immediately.]  , 

******* 

(For  sale  of  franchises  by  municipalities,  see  Franchises, 
page  573,  ante,  for  act  of  March  2,  1905,  stats.  1905,  p.  777.  as 
amended  March  3,  1909,  stats.  1909,  p.  125.) 


PERSONAL  PROPERTY  BROKERS. 

See  Brokers. 


PUBLIC  WELFARE. 

See  Health  and  t^anitalion ;  see,  also,  Hospitals. 


RAILROADS.  645 

RAILROADS. 

See,  also.  .l/n'w«/s.  for  certain  duties  of  carriers. 

An  act  to  enable  railroad  companies  to  complete  their  railroads. 

Approvoa    April    1,    1878;    stat.s.    1877-S,    p.    MM.      Affect.s   only 
companies  organized  prior  to  the  pas.sag'e  of  the  act. 


An  act  to  create  the  office  of  commissioner  of  transpoi-tation.  and 
to  define  its  powers  and  duties;  to  fix  the  maxiinum  charges 
for  transporting  passengers  and  freights  on  certain  railroads; 
and  to   prevent  extortion   and   unjust  discrimination   thereon. 

Approved  April  1,  1878;  stats.  1877-8,  p.  969.  The  greater 
part  of  this  statute  said  by  code  commissioners  to  have  been 
repealed  by  the  constitution  of  1879,  but  certain  of  its  penal  pro- 
visions perhaps  remained  in  force.  See  Dyer  vs.  Placer  County, 
90  Cal.  276,  and  Giesecke  vs.  .Stan  Joaquin  County,  109  Cal.  489. 
Section  2  of  chapter  3  of  the  act  superseded  by  Pen.  C.  §  369&, 
as  adopted  in  190.5  ;  S§  4,  5,  and  6  of  chapter  3  of  the  act  are 
superseded  by  Pen.  C.  §§  3G9d,  369g,  and  369/-",  respectively,  as 
adopted  in  190.5  ;  §§  7  and  8  of  chapter  3  of  the  act  are  superseded 
by  act  of  1901,  p.  666.  providing  for  policemen  on  railroads  or 
.steamboats.  Act  of  April  1,  1878,  specifically  repealed  in  its 
entirety  by  railroiid  act  of  March  19,  1900  :  stat.s.   1909,  p.  499. 


An  act  permitting  and  authorizing  railway  and  other  corpora- 
tions, organized  irnder  the  laws  of  this  state,  or  of  any  state 
or  territory  of  the  United  States  of  America,  or  any  act  of 
congress  of  the  United  States  of  America,  to  do  business  in 
this  state  on   equal   terms. 

Approved  April  3,  1880;  stats.  1880,  p.  21.  (Authorizing  rail- 
ways to  make  leases  and  other  contracts.)  Act  superseded  by 
Civ.  C.   §S  407  and  473<'f,  as  adopted  in  1905. 


An  act  to  organize  and  define  the  powers  of  the  board  of  railroad 
commissioners. 
Approved  April   J.5,   JS80;  stats.    JS8U,   p.    i:..      l^i  ti>iil(<l  Marr-ii 
19,  1909  ;  stats.   1909,  p.   499. 


646  STATUTES    AT   LARGE. 


An    act    to    compel    railroad    corporations,    or    individuals    owning 
railroads,   to  operate  their   roads. 

Approved  April  15,   1S80  ;   stats.   1880,  p.   43. 

Ed.  Note. — Act  partially  superseded  by  Civil  Code  section  468. 
as  amended  in  1905.      (See  page  126,  ante.) 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Operation  of  railroads. 

.Section  1.  From  and  after  the  completion  of  any  railroad, 
or  the  completion  of  such  portion  thereof  capable  of  being  oper- 
ated, it  shall  be  the  duty  of  the  corporation,  or  individual  owninjr 
I  he  same,  to  operate  it;  and  upon  the  failure  of  said  corporation 
or  individual  so  owning  said  road  to  keep  the  same,  or  any  part 
thereof,  in  full  operation  for  the  period  of  six  months,  its  or  his 
right  to  operate  the  same  in  whole  or  in  part,  as  the  case  may  be. 
shall  be  forfeited;  and  the  lands  occupied  for  the  purposes  of  its 
or  his  road,  so  far  as  the  same  shall  not  be  operated,  shall  revert 
(o  the  original  owners,  or  their  successors  in  interest.  A  railroad 
sliail  be  deemed  to  be  in  full  operation  wlien  one  passenger  train, 
or  one  mi.xed  train,  is  run  o\er  it  once  cndi  day  in  each  direction, 
and  a  sufficient  number  of  freight  trains  to  accommodate  the 
traffic  on  said  road. 

When  act  does  not  apply. 

Sec.  2.  This  act  shall  not  be  construed  lo  apply  to  a  cas(> 
where  the  operation  of  tiie  road  is  prevented  by  the  act  of  God, 
nor  to  a  case  where  the  operation  of  said  road,  together  with  its 
branch  or  trunk  lines,  does  not  yield  income  sufficient  to  defray 
the  expenses  of  maintaining  and  oi)erating  tiie  same  in  connec- 
tion with  its  said  branch  or  trunk  lines. 

Power  of  railroad  commissioners. 

Sec.  3.  'rii(>  railroad  coinmissionors  of  the  Slalcof  ( ';ilif(inii;i 
shall  have  the  power  to  examine  and  determine  the  question 
whether  said  road,  together  with  its  said  branch  and  trunk  lines, 
does  or  does  not  yield  income  sufficient  to  operate  the  same. 

Time  act  shall  take  effect. 

Sec.  "4.      1'his  act  shall   lake  ef|"e((    ininiediat<"ly. 
{Matli-nr  A'//.  Co.  vs.   Iln ijDKittd  (hiiiiilc  <'n..  3  fnl.   App.  tiS.'',.) 


RAILROADS.  647 

An  act  to  provide  for  the  management  and  operation  of  railroads 
above  certain  elevations. 

Approved  February   9,    1897  ;   stats.   1897,   p.    5. 

Ed.  Note. — Act  partially  superseded  by  Civil  Code  section  4GS, 
as  amended  in  1905.      (See  page  126,  ante.) 

The  people  of  the  State  of  California,  represented  in  senate  aiid 
assemhJy,  do  enact  as  folloivs: 

Time  during  which  operation  is  required. 

Section  1.  All  railroads  operated  in  this  state  whose  lines 
of  road  are  wholly  constructed  at  an  elevation  of  five  thousand 
feet,  or  more,  above  the  level  of  the  sea,  shall  only  be  required 
to  maintain  and  operate  their  roads,  or  to  v\n\  passenger  or 
freight  care  thereon,  between  the  fifteenth  day  of  May,  and  the 
fifteenth  day  of  October  in  each  year. 


An  act  to  provide  for  the  appointment  of  policemen,  with  the 
powers  of  peace  officers,  to  serve  upon  the  premises,  cars  or 
boats  of  railroad  and  steamship  companies. 

Appioved  Maicli   23,    1901  ;    slats.    1901,    p.    Gtu;. 

'I'hr  propir  of  the  l^tatc  of  Californlo.  represented  in  senatr  ttnd 

assembly,  do  enact  as  follows: 

Governor  to  appoint  policemen  on  application  of  railroad  or 
steamboat  companies. 
►Section  1.  The  governor  of  tlic  State  of  California  is  hereby 
authorized  and  empowered,  upon  the  application  of  any  railroiul 
or  ste.Tmboat  company,  to  appoint  and  commission  during  his 
l)leasure  one  or  more  persons  designated  by  such  company  and 
to  serve  at  the  expense  of  such  company,  as  policeman  or  police- 
men, with  the  powers  of  peace  officers,  and  wiio,  after  being 
(Inly  sworn,  may  act  as  such  policeman  or  i)oliccmen  upon  the 
premises,  cars  or  IiomIs  of  sudi  conipniiy.  'i'lie  company  desig- 
nating such  ))<'rs()ii  (ir  iicrsons  shall  be  respdusible  civilly  for  any 
aimse  of  his  or  their  authority. 

Badge  to  be  worn  by  officers. 

Sec.  2.  Every  such  policeman,  shall,  when  on  duty,  wear  in 
plain  view  a  shield  bearing  the  words  "railroad  police,"  or 
"steamboat  police."  as  the  case  may  b(>,  and  the  name  of  the 
company  for  wliii'li  ho  is  commissioned. 

Time  act  shall  take  effect. 

Sec.   .3.     'I'his  .act  shall   lake  wITect  immoHialelv. 


G48  STATUTES    AT   LARGE. 


An  act  providing  for  tlie  organization  of  the  railroad  commission 
of  the  State  of  California,  defining  its  powers  and  duties  and 
the  powers  and  duties  of  transportation  companies,  their 
officers  and  employees,  and  defining  offenses  by  transporta- 
tion companies,  their  officers,  employees  and  other  persons, 
and  providing  penalties  therefor;  and  repealing  an  act 
entitled  "An  act  to  create  the  office  of  commissioner  of 
transportation,  and  to  define  its  powers  and  duties;  to  fix 
the  maximum  charges  for  transporting  passengers  and 
freight  on  certain  railroads,  and  to  prevent  extortion  and 
unjust  discrimination  therein,"  approved  April  1,  1878,  and 
also  repealing  an  act  entitled  "An  act  to  organize  and  define 
the  powers  of  the  board  of  railroad  commissioners,"  approved 
April   15,  1880. 

Approved  March  19,  1909  ;  stats.   1909,  p.  499. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Railroad  commission,  of  whom  composed. 

Skction  1.  The  three  persons  elected  railroad  commissioners 
pur.suant  to  the  provisions  of  section  22  of  article  XII  of  the 
constitntiou  of  the  state,  constitute  and  shall  be  known  and 
designated  as  the  railroad  commission  of  the  State  of  California. 
They  shall  have  power  to  elect  one  of  their  number  president  of 
said  board,  to  appoint  a  secretary,  to  appoint  an  assistant  secre- 
tary, and  to  employ  a  stenographer. 

Salaries — Expenses. 

Sr':c.  2.  The  salary  of  each  coiiiniissidncr  sliall  be  six  tlioii- 
sniul  doIJai-s  per  annum  ;  the  sabtry  of  the  secretary  shall  be 
Ibrer  thousand  dollars  i)er  annum;  the  salary  of  the  assislaut 
sccn-tary  shall  be  eighteen  hundred  dollars  per  annum;  the 
salary  of  the  stenographer  shall  l)e  nine  hundred  dollars  per 
annum ;  such  salaries  to  be  paid  by  the  State  of  California  in 
the  same  manner  as  the  salaries  of  state  ofhcers  are  paid.  Said 
commissioners,  and  the  persons  in  their  official  employment 
when  traveling  in  the  performance  of  their  official  duties,  shall 
have  their  traveling  expenses  other  than  transportation  paid,  the 
amounts  to  be  passed  on  by  the  state  board  of  examiners,  and 
paid  by  the  state.  Said  board  of  railroad  commissioners  shall  be 
.illowed  one  hundred  dollars  per  month  for  office  rent,  and  lift> 
dollars  per  month  foi-  fuel,  lights.  ))ostage,  exi)ressage,  subscrip- 
tion   to   publications    upon    the    subject    of    transportation,    and 


RAILROADS.  G49 

other  incidental  expenses,  to  be  paid  by  the  state;  prorided,  that 
all  moneys  remaining-  unexpended  at  the  expiration  of  each  fiscal 
year  shall  be  returned  to  the  state  treasury.  The  state  shall 
furnish  said  board  with  all  necessary  stationery  and  printing, 
upon  requisitions  signed  by  the  president  of  said  board. 

Passes. 

Sec.  3.  Said  commissioners  and  the  persons  in  their  official 
employment  shall,  when  in  the  performance  of  their  official 
duties,  have  the  right  to  pass  free  of  charge  on  all  railroads, 
steamers,  ships,  vessels  and  boats,  and  on  all  vehicles  employed 
in  or  by  any  transportation  company,  subject  to  the  provisions 
of  this  act,  engaged  in  the  transportation  of  freight  and  pas- 
sengers within  this  state. 

Duty  of  attorney  general. 

Sec.  4.  It  shall  be  the  duty  of  the  attorney  general  to  insti- 
tute and  prosecute  any  and  all  such  suits  and  proceedings  as 
shall  be  requested  of  him  by  said  board,  and  to  appear  therein, 
and  in  all  suits  and  proceedings  to  which  the  board  is  a  party, 
for  said  board,  and  said  suits  and  proceedings  shall  have  prece- 
dence over  all  other  business  except  criminal  business  ;  provided, 
that  said  board  shall  have  the  power  to  employ  additional  coun- 
sel to  assist  the  attorney  general,  or  otherwise,  whenever  they 

may  deem  it  expedient.  The  fees  and  expenses  of  said  additional 
counsel  shall  be  determined  by  the  state  board  of  examiners  and 
paid  by  the  state. 

Office. 

Sec.  5.  The  office  of  said  board  shall  be  in  the  city  and 
county  of  San  Francisco.  Said  office  shall  always  be  open 
(legal  holidays  and  non-judicial  days  excepted).  The  board 
shall  hold  its  sessions  at  least  once  a  month  in  said  city  and 
county  of  San  Francisco,  and  at  such  other  times  and  such 
other  places  within  this  state  as  may  be  expedient.  The  sessions 
of  said  board  shall  be  public. 

Salaries,  how  paid. 

Sec.  ().  Th(»  salaries  of  the  commissiouers,  secretary,  assist- 
ant secretary  and  other  officers  and  attaches  in  any  manner 
employed  by  the  board  of  commissioners  shall  be  paid  out  of 
any  money  in  the  general  fund  appropriated  therefor. 

28— CL 


nnO  STATUTES    AT   LARGE. 

Seal. 

Si'X'.  7.  Tlie  board  shall  lia\-e  a  si-al.  In  he  (Icviscd  by  its 
mcnibcrs.  or  a  majority  thorcur.  Such  seal  sliall  have  tlio  fol- 
lowing Lnscriplion  surrounding  it:  "Railroad  Commission,  State 
of  California."  The  seal  shall  be  affixed  only  to,  first,  writs  ; 
second,  authentications  of  a  copy  of  a  record  or  other  proceeding, 
or  copy  of  a  document  on  file  in  the  office  of  said  commission. 

Process. 

Sec.  S.  The  process  issued  by  said  board  shall  extend  to  all 
parts  of  the  state.  The  board  sliall  ha\e  power  to  issue  writs  of 
summons  and  of  subpo-ua  in  a  like  manner  as  courts  of  record. 
The  summons  shall  direct  the  defendant  to  appear  and  answer 
within  fifteen  days  from  the  day  of  service.  The  necessary  process 
issued  by  the  board  may  be  served  in  any  county  of  this  state  by 
any  person  authorized  to  serve  process  of  courts  of  record. 

Duty  of  secretary. 

Sec.  9.  The  secretary  of  said  board  shall  issue  all  process 
a^d  notices  required  to  be  issued,  and  do  and  jiei-form  such 
other  duties  as  the  board  may  prescribe. 

Complaints. 

Sec.  10.  All  complaints  before  said  board  shall  be  in  writing 
and  under  oath.  All  decisions  of  said  board  shall  be.  given  in 
writing,  and  the  grounds  and  the  decisions  shall  be  stated.  A 
re(-ord  of  the  proceedings  of  said  board  shall  be  kept,  and  the 
evidence  of  persons  appearing  before  said  board  shall  be  lU'e- 
served. 

Certain  terms  defined. 

Sec.  11.  The  term  "transportation  company,"  as  used  in 
this  act,  shall  include  railroads  operated  for  commercial  pur- 
poses, express  companies,  sleeping  car  companies,  and  compa- 
nies operating  vessels  engaged  in  carrying  freight  or  passengers 
on  the  waters  of  this  state.  The  term  "railroad"  and  "rail- 
road company,"  as  used  in  this  act,  shall  include  all  bridges 
and  ferries  used  or  operated  in  connection  with  any  railroad, 
and  all  the  road  in  use  by  any  railroad  company  operating  a 
railroad,  whether  owned  or  operated  under  a  contract,  agree- 
ment, or  lease,  and  all  switches,  spurs,  tracks  and  terminal 
facilities,  used  in  the  transportation  of  persons  or  property,  and 
all   freight   depots,   yards   or   grounds,   used   in    the    transporta- 


RAILROADS.  651 

tion  or  delivery  of  any  of  said  property.  The  term  "transpor- 
tation," as  used  in  tliis  act,  shall  include  cars  and  other  vehicles 
and  all  instrumentalities  and  facilities  of  shipment  or  carriage 
used  by  transportation  companies  in  the  movement  of  persons 
or  property  irrespective  of  ownership,  or  of  any  contract,  express 
or  implied,  for  the  use  thereof,  and  all  services  in  connection 
with  the  receipt,  delivery,  transfer  in  transit,  ventilation,  re- 
frigeration or  icing,  storage  and  handling  of  property  trans- 
ported. The  term  "company,"  as  used  in  this  act,  shall  include 
corporations,  associations,  partiiershiiis.  trustees,  assignees,  and 
individuals. 

Whenev(H-  any  transportation  company  by  water  uses  or 
operates,  as  incidental  to  the  operation  of  its  ships  or  boats, 
any  Ijarge.  canal  boat,  steamer,  tug,  ferryboat,  or  lighter,  the 
thing  so  incidentally  used  or  operated  shall  be  deemed  to  be 
part  of  its  transportation. 

Duty  of  commission. 

Sec.  32.  It  is  hereby  made  the  duty  of  such  railroad  com- 
mission to  see  that  the  provisions  of  this  act  and  all  laws  of  this 
state  concerning  transportation  companies  are  enforced  and 
obeyed,  and  that  violations  thereof  are  promptly  prosecuted, 
and  penalties  due  the  state  therefor  recovered  and  collected. 
And  said  commission  shall  report  all  such  violations,  with  the 
facts  in  their  possession,  to  the  attorney  general  or  other  officer 
charged  with  the  enforcement  of  the  laws,  and  request  him  to 
institute  the  proper  proceedings. 

Examination  of  books  of  companies. 

Sec.  13.  The  commissioners,  or  either  of  them,  or  such  per- 
son as  they  may  employ  for  that  purpose,  shall  be  authorized, 
at  such  times  as  they  may  deem  necessary,  to  examine  the 
books  and  papers  of  any  transportation  company,  and  to  exam- 
ine under  oath  any  officer  or  employee  of  such  company  in 
respect  to  the  business  of  tlie  same.  If  any  transportation  com- 
pany shall  willfully  refuse  to  permit  such  inspection  of  its 
books  and  papers,  said  company  shall,  for  each  offense,  be  sub- 
ject to  a  penalty  of  five  hundred  dollars  for  each  day  it  shall 
so  refuse,  payable  to  the  State  of  California,  and  recoverable 
in  an  action  in  the  name  of  said  board  of  railroad  commis- 
sioners by  the  attorney  general  at  the  request  of  said  board,  in 
the  superior  court  of  the  county,  or  city  and  county,  where  said 


652  STATt'TES    AT   LARGE. 

company  has  its  priucipal  operating  office  in  the  State  of  Cali- 
fornia. No  person  employed  by  said  board  to  make  such  inspec- 
tion shall  be  entitled  to  make  the  same  until  he  shall  fii-st 
produce  his  authority  therefor,  in  writing,  under  the  hand  and 

seal  of  said  commission. 

Refusal  to  exhibit  books,  penalty  for. 

Sec.  14.  Any  officer,  agent  or  employee  of  any  transporta- 
tion company  who,  upon  proper  demand,  shall  willfully  fail 
or  refuse  to  exhibit  to  the  commissioners,  or  either  of  them,  or 
any  person  authorized  to  investigate  the  same,  any  book,  record, 
or  paper  of  such  transportation  company,  which  is  in  the  pos- 
session or  under  the  control  of  such  officer,  agent  or  employee, 
shall  be  deemed  guilty  of  a  misdemeanor,  and.  upon  conviction 
in  any  court  having  jurisdiction  thereof,  shall  be  punished  by 
a  fine  in  a  sum  not  less  than  five  hundred  dollars  and  not  to 
exceed  two  thousand  dollars. 

Witnesses,  pay  for. 

Sec.  15.  The  said  commission  is  authorized  to  investigate 
any  breach  of  the  provisions  of  this  act,  and  to  issue  subpoenas 
for  the  attendance  of  the  witnesses,  and  each  of  said  witnesses 
so  subpoenaed  shall  receive  for  his  attendance  before  the  com- 
mission two  dollars  per  day  and  three  cents  per  mile  for  the 
distance  by  the  nearest  practicable  route,  in  going  to  and  return- 
ing from  the  place  of  meeting  of  said  commission,  and  said 
witness  fees  shall  be  ordered  paid  by  the  state  controller,  upon 
presentation  of  proper  vouchers  sworn  to  by  the  witness  and 
approved  by  the  chairman  of  the  commission;  provided,  that 
the  chairman  of  said  commission  shall  not  approve  any  such 
voucher  in  the  case  of  a  witness  subpoenaed  at  the  instance  of 
parties  other  than  the  commission,  unless  it  shall  appear  to 
said  chaii-man  that  the  testimony  of  such  witness  was  material 
to  the  matter  investigated.  In  case  any  witness  shall  fail  or 
refuse  to  obey  such  subpoena,  the  commission  may  issue  an 
attachment  for  said  witness,  directed  to  any  sheriff  or  con- 
stable of  the  State  of  California,  to  compel  such  witness  to 
attend  before  the  commission  and  give  his  testimony  in  respect 
to  (he  matter  investigatetl.  No  person  shall  be  excused  from 
attending  and  testifying,  or  from  producing  books  and  papers 
in  obedience  to  said  subpipna  on  the  ground  that  the  testimony 
or  evidence  required  of  him  may  tend  to  incriminate  him,  but 


KAILUOADS.  Goo 

uo  persou  shall  be  prosecuted.  ])iinishc(l  or  subjected  to  nny 
penalty  or  forfeiture  for  or  on  account  of  any  transaction,  mat- 
ter or  thing  concerning  which  he  may  testify  or  produc  evi- 
dence, documentary  or  otherwise,  before  said  commission  in 
obedience  to  said  subpa-na  :  iirocided.  hoiccrvr.  that  no  i)erson 
so  testifying  shall  be  exempt  from  prosecution  and  punishment 
for  perjury  committed  in  so  testifying.  The  sheriff  or  con- 
stable executing  any  process  issued  under  the  i)rovisions  of  this 
act  shall  receive  such  compensation  therefor  as  may  be  allowed 
l)y  the  commission,  not  to  exceed  the  fees  as  the  same  shall  nqw 
or  hereafter  be  prescrilx'd  by  law  for  similar  services. 

Rates  of  charges,  establishment  of. 

Sec.  1(>.  The  said  i)oard  of  railroad  commissioners  shall  lia\r 
the  power,  and  it  shall  be  their  duly,  to  establish  rates  of 
charges  for  transportation  by  transportation  companies  subject 
to  the  provisions  of  this  act.  and  the  order  for  the  said  rates  so 
made  shall  take  effect  on  the  twentieth  day  after  service  of  the 
same  upon  the  transportation  company  affected  thereby,  and 
in  case  such  company  be  a  corporation  such  service  shall  he 
sufficient  if  made  upon  the  president,  vice-president,  secretary 
or  managing  agent  thereof,  and  in  case  such  company  be  a 
]iartnersliip,  upon  any  member  of  the  firm  :  to  examine  the 
books.  I'ecords  and  papers  of  all  such  transi)ortation  comi)anies. 
and  for  this  purpose  they  shall  have  i)ow('r  to  issue  subpienas 
and  all  other  necessary  processes  ;  to  hear  and  determine  com- 
plaints against  said  transportation  companies:  to  send  for  per- 
sons and  papers:  to  administer  oaths,  take  testimony  and 
punish  for  contenii)t  of  their  orders  and  jirocesses  in  the  same 
manner  and  to  the  same  extent  as  courts  of  record  :  and  (o 
enforce  their  decisions,  and  correct  aluises  through  the  niediuui 
of  the  courts. 

Through  routes  and  joint  rates. 

Skc.  17.  The  couunission  ma.v.  jil'ter  lieariuL;  on  a  c(ini|ilninl 
and  upon  such  reasonable  notice  as  it  may  fix  to  tiie  coui|)au\ 
or  companies  complained  of.  estalilish  through  routes  and  joint 
rates  as  the  maximum  to  be  charged,  and  prescribe  the  division 
of  such  rates  as  hereinafter  provided,  and  the  terms  and  con- 
ditions under  which  such  through  routes  shall  lie  operated  when 
that  may  be  necessary  to  gi\-e  effect  to  any  jirovision  of  this 
act    and   the  comii.-niy  or  cuin|ianies  couiplained   of   have   refused 


(\~A  STATUTES    AT    LAIUiE. 

or  iif'gJf'cltMl  lo  cslablish  \oluutarily  such  tliruugli  roulfs  nud 
joint  rates;  provided,  no  reasouablc  or  satisfactory  through 
route  exists,  and  this  provision  shall  apply  when  one  of  tht- 
connecting  companies  is  a  water  line.  Should  the  companies 
fail  to  agree  among  themselves  upon  the  apportionment  or  divi- 
sion of  such  joint  rates,  the  commission  may,  after  hearing,  upon 
such  reasonable  notice  to  said  companies  as  it  may  fix,  make  a 
supplemental  order  prescribing  the  just  and  reasonable  propor- 
tion of  such  joint  rate  to  be  received  by  each  company  party 
thereto. 

Schedules  to  be  filed  and  posted — Changes  in  rates — Joint 
tariffs — Form   of  schedules. 

Sec.  is.  Every  transportation  company,  subject  to  the  pro- 
visions of  this  act,  shall  file  with  the  commission,  within  a  time 
fixed  by  the  commission,  and  print  and  keep  open  to  public 
inspection,  schedules  showing  all  the  rates,  fares  and  charges 
for  transportation  between  different  points  on  its  own  route 
and  between  points  on  its  own  route  and  points  on  the  route 
of  any  other  transportation  company  sul)ject  to  the  provisions 
of  this  act,  when  a  through  route  and  joint  rate  have  been 
established.  These  schedules  shall  plainly  state  the  places 
between  which  property  and  passengers  will  be  carried,  and 
shall  also  state  separately  all  terminal  charges,  storage  charges, 
icing  charges,  and  all  other  charges  which  the  commission  may 
require,  all  privileges  or  facilities  granted  or  allowed,  and  any 
rules  or  regulations  which  in  anywise  change,  affect,  or  deter- 
mine any  part  or  the  aggregate  of  such  aforesaid  rates,  fares 
and  charges,  or  the  value  of  the  service  rendered  to  the  pas- 
senger. shipi)er  or  consignee.  Such  schedules  shall  be  plainly 
printed  in  large  type,  and  copies  for  the  use  of  the  public  shall 
be  kept  on  file  in  every  depot,  station  and  office  of  such  trans- 
portation comi>auies  where  passengers  or  freight,  respectively, 
arc  received  for  transportation,  in  such  form  that  they  shall  be 
accessible  to  the  public  and  can  be  conveniently  inspected.  The 
provisions  of  this  section  shall  apply  to  all  traffic,  transportation 
and  facilities  defined  in  this  act. 

No  change  shall  be  made  in  the  rates,  fares  and  charges,  or 
joint  rates,  fares  and  charges  which  have  been  made,  filed  and 
published  by  anj*  transportation  company  subject  to  the  provi- 
sions of  this  act.  except  after  thirty  days'  notice  to  the  com- 
mission.  an<l    In   till'   puiiiir,   |iul)iishi'<l    as  aforesaid,    which   shall 


RAILROADS.  G55 

lilaiuly  state  the  changes  proposed  to  be  made  in  the  schedule^ 
then  in  force  and  the  time  when  the  changed  rates,  fan'  (ir 
charges  will  go  into  efifect ;  and  the  proposed  changes  shall  lie 
shown  by  printing  new  schedules,  or  shall  be  plainly  indicated 
upon  the  schedules  in  force  at  the  time,  and  kept  open  to  public 
inspection ;  provided,  that  the  commission  may,  in  its  discretion 
and  for  good  cause  shown,  allow  changes  upon  less  than  the 
notice  herein  specified,  or  modify  the  requirements  of  this  sec- 
tion in  respect  to  publishing,  posting  and  filing  of  tariffs,  either 
ill  particular  instances  or  by  a  general  order  apidicable  to  special 
or  i)eculiar  circumstances  or  conditions. 

The  names  of  the  several  transportation  companies  which 
are  parties  to  any  joint  tariff  shall  be  specified  therein,  and 
each  of  the  parties  thereto,  other  than  the  one  filing  the  same, 
shall  file  with  the  commission  such  evidence  of  concurrence 
therein  or  acceiitance  thereof  as  may  be  required  or  approved 
by  the  commission,  and  where  such  evidence  of  concurrence  or 
acceptance  is  filed,  it  shall  not  be  necessary  for  the  transporta- 
tion companies  filing  the  same  to  also  file  copies  of  the  tariffs  in 
which  they  are  named  as  parties. 

The  commission  may  determine  and  prescribe  the  form  in 
which  the  schedules  required  by  this  section  to  be  kept  open 
to  public  inspection  shall  be  prepared  and  arranged,  and  may 
change  the  form  from  time  to  time  as  shall  be  found  expedient. 

No  transportation  company  subject  to  the  provisions  of  this 
act,  unless  otherwise  provided  by  this  act,  shall  engage  or  par- 
ticipate in  the  transportation  of  passengei-s  or  property,  as 
defined  by  this  act,  unless  the  rates,  fares  and  charges  upon 
which  the  same  are  transported  by  said  transportation  comi)any 
have  been  filed  and  published  in  accordance  with  the  provisions 
of  this  act;  nor  shall  any  transportation  companj'  charge  or 
demand  or  collect  or  receive  a  greater  or  less  compensation  for 
such  transpoi-tation  of  passengers  or  iiroperty.  or  for  any 
s(M-\i<i'  in  connection  therewith,  between  the  iioinis  uauii'd  in 
such  tariffs,  than  the  rates,  fares  and  charges  which  are  s|)eci- 
tied  in  the  tariffs  filed  and  in  effect  at  the  time. 

Change  of  rates,  notice  to  company. 

Sec.  1!>.  'V\\<'  said  commission,  before  establishing,  changing, 
.■imonding.  or  abolishing  any  rule,  regulation,  or  rate  of  charge 
for  transportation,  shall  give  the  transportation  company  to 
be  affected   thereby   ten  days'  notice  of   the   tinir  ■•md    [)lace   for 


G5G  STATUTES    AT   LARGE. 

Hk'  taking'  of  action  by  tlio  commission  in  I'cspect  to  the  same, 
and  said  company  shall  be  entitled  to  be  heard  at  such  time 
and  place  and  to  process  for  the  attendance  of  its  witnesses, 
to  the  end  that  such  action  may  be  taken  by  the  commission  as 
shall  l)e  reasonable  and  just  in  the  premises. 

Petition   for   investigation. 

Sec.  20.  Any  i)ersou,  firm,  corporation,  or  association,  or 
any  mercantile,  agricultural  or  manufacturing  society,  or  any 
body  politic,  or  municipal  organization,  complaining  of  any-, 
thing  done  or  omitted  to  be  done  by  any  transportation  com- 
pany subject  to  the  provisions  of  this  act,  in  contravention  of 
the  provisions  thereof  or  of  the  constitution  of  this  state  may 
apply  to  said  commission  by  petition,  which  shall  set  forth  the 
facts  ;  whereupon,  if  there  shall  appear  to  the  commission  to  l)e 
any  reasonable  grounds  for  investigating  such  complaint,  it 
shall  cause  a  copy  of  the  same  to  be  served  on  the  transportation 
company  concerned,  and  call  upon  said  company  to  answer  the 
same  at  a  time  and  place  specified  in  said  call  by  said  commis- 
sion. The  commission  shall  investigate  the  matters  complained 
of  under  such  reasonable  rules  and  modes  of  procedure  as  it 
shall  deem  proper.  No  complaint  shall  at  any  time  be  dismissed 
liccause  of  the  absence  of  direct  damage  to  the  i)laintiff. 

Reports  of  investigations — Award  of  damages  to  complainant — 
When  complaints  must  be  filed — Joinder  of  parties — Orders, 
how  served, 
Sec,  21,  Whenever  an  investigation  shall  be  made  by  said 
commission,  it  shall  be  its  duty  to  make  a  report  in  writing  in 
i-espect  thereto,  which  shall  state  the  conclusions  of  the  com- 
mission, together  with  its  decision,  order  or  recjuirement  in  the 
premises:  and  in  case  damages  are  awarded,  such  report  shall 
incbulc  the  findings  of  fact  in  which  the  award  is  made.  .Ml 
reports  of  investigations  made  by  tin'  commission  shall  be 
cnlcri',!  of  record,  and  a  copy  thereof  shall  l>e  furnished  to  the 
p.nt.N'  wild  may  iiinc  complained,  and  to  any  transportation 
conipaux-  Ihiit  may  lunc  been  complained  of.  The  commission 
may  i)ro\iil<'  for  tlu'  publication  of  its  reports  and  decisions 
in  such  form  and  manner  as  may  be  best  adapted  for  public 
use  and  information,  and  such  authorized  publications  shall 
be  comi)etent  evidence  of  the  reports  and  decisions  of  the  com- 
mission   Iherein    coiilained    in    all    courts   of   this   state,    without 


KATT.nOADS.  (>n7 

;iny  fnrlhcr  proof  or  aulliciilicntioii  (hcr(H)F.  The  cxpotisc  of 
such  publication  shall  he  onlorcd  paid  by  the  controller  on  the 
certificate  of  the  chairman  of  said  conuniysion  Ihat  the  same  has 
been  incurred,  and  shall  be  payable  out  of  any  moneys  in  the 
iicneral  fund  not  otherwise  appropriated. 

If.  in  any  such  inv(^stisation,  the  commission  shall  determine 
liial  any  part.v  complainant  is  (>ntitled  to  an  award  of  damaues 
und(H'  the  provisions  of  this  act.  for  a  violation  thereof,  the 
commission  shall  make  an  order  directing  the  transportation 
comi)an.v  to  i)ay  to  the  complainant  tlie  sum  to  which  he  is 
entitled,  on  or  before  a  day  named.  If  such  transiiortation  com- 
pany does  not  compl.\-  with  an  order  for  the  paynnnit  of 
money  within  the  time  limited  in  such  order,  the  complainant, 
or  any  person  for  whose  benefit  such  order  was  made,  may  file, 
in  the  superior  court  of  the  State  of  California,  for  the  count.v 
in  which  complainant  resides,  or  in  which  is  located  the  prin- 
cipal operatins  ottice'  of  the  transportation  company  in  said 
state,  a  petition  setting  forth,  briefly,  the  causes  for  which  he 
claims  damages,  and  the  order  of  the  commission  in  the  premis(>s. 
Such  suit  shall  proceed  in  all  respects  like  other  civil  suits  for 
damages  in  said  superior  court,  except  that  on  the  trial  of  said 
suit  the  findings  and  oi-der  of  the  commission  shall  be  prima 
facie  evidence  of  the  facts  therein  stat(>d,  and  either  i)arly 
thereto  shall  have  the  right  of  apiieal  to  the  supreme  court  as  in 
other  cases  appealable  thereto. 

All  complaints  for  the  recovery  of  damages  shall  be  filed 
with  the  commission  within  one  year  from  the  time  the  cause 
of  action  accrues  and  not  after,  and  a  petition  for  the  enforce- 
ment of  an  order  of  the  commission  for  the  payment  of  mone.v 
shall  be  filed  in  the  superior  court  within  six  months  from  the 
date  of  the  order  and  not  after. 

In  such  suits  all  parties  in  whose  favor  the  connnission  may 
liave  made  an  award  for  damages  l).\-  a  single  order  may  be 
.joined  as  plaintiffs,  and  all  of  the  transportation  companies, 
parties  to  such  order,  may  be  joined  as  defendants,  and  the 
venue  of  all  such  suits  shall  be  in  tin'  coinity  wliei'e  any  of  such 
transportation  comi)anies  siiaJi  hnxc  its  principal  operating 
office  in  the  State  of  California. 

In  the  case  of  such  .ioint  suit,  (lie  reco\-ery,  if  ;in.\-.  ma.\-  l)e 
by  judgment  in  favor  of  any  one  of  such  plaintiffs,  a^.ainst  the 
defendant  found  to  be  liable  to  such  plaintiff. 


G5S  STATUTES    AT   LARGE. 

I'h'ci'.V  oi'di'i'  (>r  (III-  coniiHission  slinll  he  forlhwith  served  l).v 
mailin.i;-  the  saiiie  lo  any  one  of  the  ])i-iiici|»al  officers,  or  agents, 
()!•  iiienil)ers  ol'  (he  triuisportation  comi)any  al  its  i^rineipal 
oiK'i-ating  ottiee  iu  tills  slate,  and  the  registry  mail  receipt  shall 
he  prima  facie  evideuco  of  the  receipt  of  such  order  by  I  he 
ti'aiisportatiou  company  in  due  course  of  mall. 

The  commission  shall  be  authorized  to  .suspend  or  modify  lis 
orders  upon  such  nollc(>  and  in  such  manner  as  .It  shall  deem 
proper. 

Authority  to  prescribe  just  rates — When  orders  become  effect- 
ive— Venue — Appeals. 
Sec.  22.  The  commission  is  authorized  and  it  shall  be  its 
duty,  whenever,  after  full  hearing  upon  a  complaint  made  as 
provided  in  section  20  of  this  act,  or  upon  complaint  of  any 
transportation  company  snb.iect  to  the  provisions  of  this  act, 
it  shall  be  of  the  opinion  that  any  of-  the  rates  or  charges 
demanded,  charged  or  collected  by  any  transportation  company 
or  companies  subject  to  the  provisions  of  this  act,  for  transpor- 
tation services,  or  that  any  regulations  or  practices  of  said  com- 
panies affecting  such  rates  or  charges,  whether  iu  respect  to  the 
complainants  mentioned  in  said  section  20,  or  in  respect  to  any 
such  transportation  company  itself,  are  unjust  or  unreasonable, 
or  unjustly  discriminatory,  or  unduly  preferential  or  preju- 
dicial, or  otherwise  in  violation  of,  or  contrary  to,  any  of  the 
provisions  of  this  act,  to  determine  and  prescribe  what  will  be 
the  just  and  reasonable  rate  or  rates,  charge  or  charges,  to  be 
thereafter  observed  in  such  case  as  the  maximum  to  be  charged  ; 
and  what  regulation  or  practice  in  respect  to  such  transporta- 
tion is  just,  fair  and  reasonable  to  be  thereafter  followed  ;  and 
to  make  an  order  that  the  transportation  company  shall  cease 
and  desist  from  such  violation  of  the  act,  to  the  extent  to  which 
the  commission  find  the  same  to  exist,  and  shall  not  thereafter 
publish,  demand  or  collect  any  rate  or  charge  for  such  trans- 
portation service  in  excess  of  the  maximum  rate  or  charge  so 
prescribed,  and  shall  conform  to  the  regulation  or  practice  so 
]irescribed,  and  to  make,  in  proper  cases,  an  order  in  respect  to 
such  rate  or  charges,  or  such  regulations  or  practices,  where  the 
transportation  company  is  complainant,  and  shall  prescribe  the 
just  and  reasonable  rate  or  rates,  charge  or  charges,  to  be  there- 
after observed  by  such  transportation  company  as  the  maxi- 
mum to  be  charged,  and  what  regulation  or  practice  in  respect 


RAILROADS.  <>51) 

to  such  trausportatioi!  services  is  Jiisl.  tali-  and  i-easoiial)le  (o 
be  thereafter  followed  by  the  said  Iransportatiou  compauy. 

All  orders  of  the  commission,  except  orders  for  the  payment 
(jf  money,  shall  take  effect  on  the  twentieth  day  after  service, 
as  provided  in  section  16  hereof,  and  shall  continue  in  force 
for  such  time  not  exceeding  one  year,  as  shall  be  prescribed  in 
the  order  of  the  couunission,  unless  the  same  shall  be  suspended 
or  modified  or  set  aside  by  the  commission,  or  be  suspended  or 
set  aside  by  a  court  of  competent  jurisdiction. 

The  superior  court  of  the  State  of  California  .shall  be  such 
court  of  competent  jurisdiction,  and  the  venue  of  suits  brought 
in  any  superior  court  of  said  state  against  the  commission,  to 
enjoin,  set  aside,  annul  or  suspend  any  order  or  requirement 
of  the  commission,  shall  be  in  the  county  whore  the  transporta- 
tion company  against  which  such  order  or  requirement  may 
have  been  made  has  its  principal  operating  office  in  the  State 
of  California,  and  may  be  broTight  at  any  time  after  such  order 
is  promulgated.  If  said  order  or  requirement  has  been  made 
against  two  or  more  transportation  companies,  such  venue  shall 
be  in  the  county  where  any  one  of  said  transportation  com- 
panies has  its  principal  operating  office  in  the  Stale  of  Cali- 
fornia, and  jurisdiction  to  hear  and  determine  such  suits  is 
hereby  vested  in  said  superior  court.  An  appeal  to  the  supreme 
court  of  the  State  of  California  may  be  taken  from  any  inter- 
locutory order  or  decree  granting  or  coutinuing  an  injunction 
in  any  suit,  but  such  appeal  must  be  taken  within  thirty  days 
from  the  entry  of  such  order  or  decree,  and  it  shall  take  prece- 
dence in  the  appellate  court  over  all  other  causes  except  causes 
of  like  character  and  criminal  causes. 

Failure  to  obey  order  of  commission. 

Sec.  2o.  If  any  transportation  company  fails  or  neglects  to 
obey  any  order  of  the  commission,  other  than  for  the  payment 
of  money,  while  the  same  is  in  effect,  any  party  injured  thereby, 
or  the  commission  in  its  own  name,  may  apply  to  the  superior 
court  of  the  State  of  (California  for  the  county  where  such 
transportation  company  has  its  principal  operating  office  in  the 
State  of  California  for  an  enforcement  of  such  order.  Said 
application  shall  be  by  petition,  which  shall  state  the  substance 
or  the  order  and  the  respect  in  which  the  transportation  com- 
pany has  failed  of  obedience,  and  shall  be  served  upon  the  com- 
pany in  such  manner  as  the  court  shall  direct,  and   the  court 


<■>•;()  STATl'TES    AT    T.ARflE. 

slmll  pi'osofiifc  such  iiKiuii'ii's  ;inil  iiin'a'  siicli  iii\-pstisations 
tlirou.uli  siu'li  iiicaDs  as  il  shall  drcni  iiccdrul  in  the  ascertain- 
ineut  of  the  facts  at  issue  ov  which  may  arise  upon  tlie  liearin^' 
of  such  petition.  If,  u])on  sucli  liearins  as  the  court  may  deter- 
mine to  he  necessary,  it  ajipears  that  the  order  was  regularly 
made  and  (hily  ser\ed,  and  that  the  t ransitortation  company  is 
in  disohedience  of  the  snnKs  the  cduit  slinll  enforce  obedience  to 
sncli  order  by  a  writ  of  in.juncti((n.  or  other  proper  process, 
mandatory  or  otherwise,  to  restrain  sucli  company,  its  officers, 
a.nents  or  representatives  from  further  disobedience  of  such 
order,  or  to  enjoin  npou  it,  or  tliem,  obedience  to  tlie  same;  and 
in  tlie  enforcement  of  such  process  the  court  shall  have  those 
powers  ordinarily  exercised  by  it  in  compelling  obedience  to  its 
writs  of  injunction  and  mandamus.  From  any  action  upon 
such  petition  an  appeal  shall  lie  by  either  party  to  the  supreme' 
court  of  the  State  of  California,  and  in  such  court  the  cause 
shall  have  priority  in  hearing  and  determination  over  all  other 
causes  excei)t  criminal  causes,  but  sudi  appeal  shall  not  vacate 
or  suspend  the  order  ajipealed   fi-om. 

Application  for  rehearing — Proceedings  on  rehearing. 

Sec.  '24.  .Vfter  a  decision,  or  order  or  reciuiremeni  has  bei'U 
made  by  the  connnission  in  any  proceeding,  any  party  thereto 
may  at  any  time  make  application  for  rehearing  of  the  same, 
or  any  matter  determined  therein,  and  the  commission  may,  in 
its  discretion,  grant  such  a  rehearing  if  sufficient  reason  there- 
for be  made  to  appear.  Applications  for  rehearing  shall  be 
governed  by  such  reasonable  rules  as  the  commission  may 
(  stablish.  No  such  application  shall  excuse  any  transportation 
company  subject  to  the  provisions  of  this  act  from  complying 
with  or  from  obeying  any  decision,  order,  or  requirement  of 
tlie  commission,  or  operate  in  any  manner  to  stay  or  postpone 
the  enforcement  thereof,  without  the  special  order  of  the  com- 
mission. 

In  case  a  rehearing  is  granted,  the  proceedings  thereon  shall 
conform  as  nearly  as  may  be  to  the  proceedings  in  an  original 
hearing,  except  as  the  commission  may  otherwise  direct ;  and 
if,  in  its  judgment,  after  such  rehearing  and  the  consideration 
of  all  facts  including  those  arising  since  the  former  hearing, 
it  shall  appear  that  the  original  decision,  order  or  requirement 
is  in  any  respect  unjust  or  unwarranted,  the  commission  may 
reverse,  change  or  modify  the  same  accordingly.     Any  decision. 


T;.\Tr,Rn.\ns.  001 

ordor  or  "rccniinMiiont  mado  at'tci-  sudi  iclii\u'ini;-.  roxorsins, 
chansiuji'  or  iiiodif.vinu-  tlic  original  il('i<Tiiiiuatinii.  shall  he  suh- 
jeot  to  I1h>  same  ])i'o\isions  as  an  oiiuinal  ordiT. 

Commission   may  investigate  on   own   motion. 

Sec.  2."i.  ^^'lH'Il('v^M•  tho  coniniissiou  shall  bolicvo  I  ha  I  any 
rate  oi-  charge  for  Iransiiorlalion  is  unjust  or  unroasonablc, 
or  unjustly  discriminalory  or  unduly  i)rotVrential,  or  that  any 
sorxice  iu  the  matter  of  such  transi)Oi'tatiou  is  inadequate  or 
that  anything  has  been  done  or  omitted  to  be  done  by  any  com- 
mon carrier  subject  to  the  provisions  of  this  act  in  contraven- 
tion to  the  provisions  thereof  or  of  the  constitution  and  that 
investigation  relating  thereto  should  be  made,  it  may.  upon  its 
own  motion,  investigate  the  same.  Before  making  such  investi- 
gation, it  shall  furnish  the  transportation  company  concerned 
a  statement  in  writing  setting  forth  tlit>  rate  or  charge  or  service 
to  be  investigated.  Tliereafter.  on  ten  (hiys'  notice  to  such 
transportation  company  of  the  time  and  jilace  of  said  investiga- 
tion, the  commission  may  proceed  to  investigate  such  rate  or 
charge  or  service  in  tlie  same  manner  and  make  like  orders  iu 
respect  thercio  as  if  such  investigation  had  been  niadf  on  com- 
plaint. 

Who  may  intervene. 

Sec.  l-'ti.  Any  parly  authorized  by  this  act  to  be  complain- 
ant in  any  investigation  before  tlie  commission,  or  subject  to  be 
defendant  therein,  may,  in  the  disei'etion  of  tlie  commission,  be 
permitted  to  intervene  in  any  such  investigation  wliere  said 
party  has  an  interest  in  the  matter  under  investigation  iu  the 
success  of  either  complainant  oi-  defendant,  or  an  interest 
against  both.  In  any  such  investigation  before  the  commission, 
any  parly  thert'to.  or  the  commission,  may  in  the  investigation 
cause  the  deposition  of  witnesses  residing  within  or  without  the 
state  to  be  taken  in  the  manner  prescril)ed  I)y  law  for  like 
depositions   in  civil   actions  in   the  superior  courts  of  this  slate 

Rules  of  procedure. 

Sec.  27.  Thr  (■onunission  sli.-iU  liase  ihe  power  to  aihipl 
rules  to  govern  its  procci'dings.  and  to  regidate  the  mode  and 
manner  of  all  in\i'sli'.;alions  of  transportation  companies  and 
other  parties  befoie  il.  in  tiie  establishment  of  rates,  rules,  regu- 
lations, or  in  I  lie  making  of  orders  and  in  the  doing  of  other 
acts  required  of  ii  under  this  act. 


♦  >(;2  STATUTES    AT    T.AROE. 

Oaths,  who  may  administer. 

Skc.  28.  The  chairuiau  and  each  <>{  (lie  coiiiiiiissiduers,  fui* 
the  purposps  of  this  act,  shall  have  power  to  admiiiislei'  all 
oaths,  certify  to  all  official  acts,  and  to  compel  the  attendance 
of  witnesses  and  the  production  of  hooks,  pajiers  and  testimony. 

Burden  of  proof. 

Skc!.  2H.  Ill  all  in\eslisalions  nnder  this  act  the  hurden  of 
proof  shall  he  upon  the  coni[)lainanl. 

Evidence. 

Seo.  .30.  All  evidence  taken  before  the  commission  in  the 
investigation  of  any  breach  of  this  act,  when  reduced  to  writing-, 
may  be  used  by  any  party  thereto  as  evidence  upon  the  trial  of 
any  cause  or  proceeding  growing  out  of  the.  same  transaction 
against  such  transportation  company,  involving  the  same  sub- 
ject-matter, and  between  the  same  parties,  to  the  same  extent  as 
a  deposition  in  a  civil  case.  The  commissioners  are  authorized 
to  employ  a  phonographic  reporter  for  the  purpose  of  taking 
and  transcribing  such  testimony  whenever  such  commission  shall 
deem  it  necessary,  or  whenever  they  shall  he  requested  to  do 
so  by  any  party  to  the  proceedings,  and  a  certified  copy  under 
the  hand  and  seal  of  said"  commission  shall  he  sutHcient  proof 
of  siicli  testimony  in  any  cause  or  proceeding  in  which  the  same 
sliall  he  admissible  as  herein  provided. 

Charges  must  be  reasonable- 

Sec.  31.  All  charges  made  for  any  service  rendered  or  to 
be  rendered  in  the  transportation  of  passengers  or  property, 
or  in  connection  therewith,  by  transportation  companies  subject 
to  the  provisions  of  this  act,  shall  be  just  and  reasonable,  and 
every  unjust  and  unreasonable  charge  for  such  service  or  any 
part  thereof  is  prohibited  and  declared  to  be  unlawful. 

Accidents,  investigation  of. 

Sec.  Sla.  The  railroad  commission  shall  investigate  the 
cause  of  all  accidents  on  any  railroad  within  the  state  which 
result  in  loss  of  life  or  injury  to  persons  or  property,  and  which 
in  its  judgment  shall  require  investigation.  p]very  common  car- 
rier and  railroad  corporation  is  hereby  required  to  give  imme- 
diate notice  to  the  commission  of  every  accident  happening  upon 
any  line  of  railroad  owned,  operated,  controlled  or  leased  by  it 
in   such   manner   as   the   commission    may   direct.     Such   notice 


RAILROADS.  (Wio 

shall  not  be  admitted  as  ovideiue  or  used  foi-  any  imrpose 
against  such  common  cari-ler  or  railroad  corporation  .siving 
such  notice  in  any  suit  or  action  for  daninges  growing  out  of 
nny  matter  mentioned  in  said  notice. 

Switch  connections. 

Sec.  31?*.  A  railroad  corporation,  upon  tln^  application  of 
any  shipper  tendering  traffic  for  transporlalion,  shall  construct, 
maintain  and  operate  upon  reasonable  terms  a  switch  connec- 
tion or  connections  with  a  lateral  line  of  railroad  or  private 
sidetrack  owned,  operated  or  controlled  by  such  shipper,  and 
shall,  upon  the  application  of  any  shipper,  provide  upon  its  own 
property  a  sidetrack  and  switch  connection  with  its  line  of  rail- 
road, whenever  such  sidetrack  and  switch  connection  is  reason^ 
ably  practicable,  can  be  put  in  with  safety,  and  the  business 
therefor  is  sufficient  to  justify  the  same. 

If  any  railroad  corporation  shall  fail  to  install  or  operate  any 
such  switch  connection  with  a  lateral  line  of  railroad  or  any 
such  sidetrack  and  switch  connection  as  aforesaid,  after  written 
application  therefor  has  been  made  to  it,  any  corporation  or 
person  interested  may  present  the  facts  to  the  railroad  commis- 
sion by  written  petition,  and  the  commission  shall  investigate 
the  matter  stated  in  such  petition,  and  give  such  hearing 
thereon  as  it  may  deem  necessary  or  proper.  If  the  commis- 
sion be  of  opinion  that  it  is  safe  and  practicable  to  have  a  con- 
nection, substantially  as  prayed  for,  established  or  niaintained, 
and  that  the  business  to  be  done  thereon  justifies  the  construc- 
tion and  maintenance  thereof,  it  shall  make  an  order  directing 
the  construction  and  establishment  thereof,  specifying  the  rea- 
sonable compensation  to  be  paid  for  the  construction,  establish- 
ment, and  maintenance  thereof,  and  may  in  like  manner  upon 
the  application  of  the  railroad  corporation  order  the  discon- 
tinuance of  such  switch  connection. 

Continuous  carriage  required. 

Sec.  31o.  No  common  carrier  shall  enter  into  or  become  a 
party  to  any  combination,  contract,  agreement  or  understand- 
ing, written  or  oral,  express  or  implied,  to  prevent  by  any 
arrangement  or  by  change  of  arrangement  of  time  schedule, 
by  carriage  in  dififerent  cars  or  by  any  other  means  or  device 
whatsoever  the  carriage  of  freight  and  property  from  being- 
continuous  from  the  place  of  shipment  to  the  place  of  destina- 


(\M  STATUTES    AT   I,ARf!E. 

linii.  Xo  hrciikase  of  bulk,  stopjin^^c  or  iiilcrniiilion  of  oarriaso 
made  l)y  any  common  t-arriei-  shall  ])ri'\cnt  tin-  carria.ye  of 
frciiiht  aud  property  from  lieini;-  treated  as  one  continiions 
carriage  from  tlie  place  of  shipment  to  the  i)lace  of  destination. 
Nor  shall  any  such  breakage  of  bulk,  stoppage  or  interruption 
of  carriage  be  made  or  permitted  by  any  common  carrier  except 
it  be  done  in  good  faith  for  a  necessary  purposi'  without  inten- 
(ion  to  avoid  or  unnecessarily  interrupt  or  delay  the  continuous 
carriage  of  such  freight  or  property  or  to  e\a(le  any  of  the  pro- 
visions of  law,  of  this  act,  or  of  any  order  of  the  railroad  com- 
mission. 

Short  haul  charges. 

Skc.  lUd.  No  common  carrier,  sub.ject  to  the  i)rovisions  of 
this  act,  shrill  charge  or  receive  any  greater  compensation  in 
I  hi'  agL;ri'^;Ur  for  the  transportation  of  passengers  or  of  a  like 
kind  of  property,  under  substantially  similar  circumstances  and 
conditions,  for  a  shorter  than  for  a  longer  distance  over  the 
same  line  in  the  same  direction,  the  shorter  being  included 
williin  the  longer  distance:  but  this  shall  not  be  construed  as 
nulliorizing  any  such  conunon  carriers  to  charge  and  receive  as 
gr<'at  a  compensation   for  a  sIioi-|er  as  for  a   longer  distanc(»  haul. 

"Extortion"   defined. 

Sec.  '.'>'2.  If  any  transportaticni  company,  or  any  oliicer  or 
agent  of  any  transportation  company  sub.iect  to  this  act,  shall 
hereafter  willfully  charge,  collect,  demand  or  receive  from  any 
])erson,  lirni  oi-  corporation  a  greater  rate,  charge  or  compensa- 
tion than  the  rate,  charge  or  compensation  published  as  in  this 
act  provided,  such  transportation  company  or  such  officer  or 
agent  thereof,  as  the  case  may  be.  shall  be  deemed  guilty  of 
extortion,  which  is  hereby  declaicd  a  misdemeanor,  and  on  con- 
\'iction  thereof  sh.ill  be  lined  in  a  sum  not  li>ss  than  five  hundred 
dpllars  and  not  more   than   ti\e  Ihoiisand  dollars. 

Rebates. 

Sec.  .">.■'>.  If  any  transportation  comjian.N'  sub.i(X't  her(>lo  shall. 
directly  or  indirectly,  by  any  special  rate,  rebate,  drawback,  or 
other  pi-actice.  method  or  device,  charge,  demand,  collect  or 
receive  from  any  person,  company,  firm  or  corporation  a  greater 
or  less  compensation  for  an.v  service  rendered,  or  to  be  rendered 
by  it  in  the  transportation  of  passengers  or  freight,  than  it 
charges,   demands,   collects  or   receives   from   any   other  person. 


RAILKOAUS.  GG5 

company,  firm  or  corporation  for  doing  a  like  and  coiitcnipo- 
raneou.s  service  in  the  transportation  of  a  like  l^iud  of  traffic, 
under  substantially  similar  circumstances  and  conditions,  such 
transportation  company  shall  be  deemed  guilty  of  unjust  dis- 
crimination, which  is  hereby  prohibited. 

Undue  preference. 

Sec.  34.  It  shall  also  be  imjust  discrimination  for  any  such 
transportation  company  to  make  or  give  any  undue  or  unreason- 
able preference  or  advantage  to  any  particular  person,  company, 
firm,  corporation,  or  locality,  or  to  any  particular  description  of 
tratfic.  in  any  respect  whatsoever,  or  to  subject  any  particular 
description  of  traffic,  in  any  respect  whatsoever,  or  to  subject 
any  particular  person,  company,  firm,  corporation  or  locality, 
or  any  particular  description  of  traffic  to  any  undue  or  nurea- 
sonable  prejudice  or  disadvantage  in  any  respect  whatsoever. 

Penal  clause. 

Sec.  34:^-2.  Any  transportation  company  guilty  of  unjust 
discrimination,  as  defined  in  this  act.  shall  be  guilty  of  a  mis- 
demeanor, and  on  con\ictiou  thereof  shall  be  fined  in  a  sum  not 
less  than  five  hundred  dollars,  and  not  more  than  five  thousand 
dollars.  Every  officer  and  agent  of  any  such  company  who  .shall 
violate,  or  who  procures,  aids  or  abets  any  violation  by  such 
company  of  any  of  the  provisions  of  sections  '.V.]  and  34  of  this 
act  shall  be  guilty  of  a  misdemeanor. 

Interchange  of  traffic. 

Sec.  3.J.  All  transportation  companies  subject  to  the  pro- 
visions of  this  act  shall,  according  to  their  respective  powers, 
afford  all  reasonable,  proper  and  eqnal  facilities  for  the  inter- 
change of  traffic  between  their  respective  lines,  and  for  the 
receiving,  forwarding,  and  delixery  of  i)assengers  and  property 
tn  and  from  their  several  lines  and  iliusc  connected  therewith, 
and  shall  not  discriminate  in  llicir  rates  and  charges  between 
such  conuecling  lines:  bul  this  shall  iiol  lie  eouslrued  as  reiiuir- 
ing  iuiy  such  ti'anspnrlatiou  eompany  l<i  gi\'e  the  use  of  its 
tracks  or  terminal  facilities  to  aiuilher  I  rniis|)ortati()n  couipauy 
engaged  in  like  business. 

False  billing. 

Sec.  3G.  Any  officer  or  agent  of  any  t  ransiiortation  company 
subject  to  this  act  who  by  means  of  false  billing,  false  classifica- 
tion, false  weight,  or  by  any  other  device,  shall   willfully  sulTer 


GG6  STATUTES    AT   LARGE. 

or  permit  any  person  or  persons  to  obtain  transportation  for 
property  at  less  than  tlie  iniblished  rates  then  in  force,  or  wlio, 
by  means  of  false  billing,  false  dassi fixation,  false  weighing,  or 
by  any  device  whatever  shall  willfully  charge  any  person,  firm 
or  corporation  more  for  the  transportation  of  property  than  the 
published  rates,  shall  be  guilty  of  a  misdemeanor,  and  on  con- 
viction thereof  shall  be  fined  in  a  sum  of  not  less  than  five  hun- 
dred dollars  and  not  more  than  five  thousand  dolhirs. 

Company  responsible  for  act  of  agent — Soliciting  favors  of  com- 
pany by  shipper. 

Sec.  37.  The  act,  omission  or  failure  of  any  officer,  agent  or 
other  person  acting  for  or  employed  by  any  transportation  com- 
pany suliject  to  the  provisions  of  this  act,  or  shipper,  acting 
within  the  scope  of  his  employment,  shall,  in  every  case,  be  also 
deemed  to  be  the  act,  omission  or  failure  of  such  transportation 
company  or  shipper,  as  well  as  that  of  the  person.  The  willful 
failure  upon  the  part  of  any  transportation  company  subject  to 
tiie  provisions  of  this  act  to  file  and  publish  the  tariff  or  rates 
and  charges  as  required  by  this  act,  shall  be  a  misdemeanor,  and 
upon  conviction  thereof  the  transportation  company  offending 
shall  be  subject  to  a  fine  of  not  less  than  five  hundred  dollars 
and  not  more  than  five  thousand  dollars. 

It  shall  be  unlawful  for  any  pei'son,  persons  or  corporation 
willfully  to  offer,  grant  or  give,  or  to  solicit,  accept  or  receive 
any  advantage  or  discrimination  in  respect  to  the  transportation 
of  any  property  in  the  interstate  commerce  of  this  state, 
wh(>reby  any  such  property  shall,  by  any  device  whatever,  be 
transi)ortod  at  a  less  rate  than  that  named  in  the  tariffs  pub- 
lished and  filed  by  such  transportation  company  as  required  by 
(his  act,  or  whereby  any  other  advantage  is  given  or  discrimina- 
tion practiced.  Every  jierson  or  corporation  who  shall  so  offer, 
grant  or  give,  or  shall  so  solicit,  accept  or  receive  any  such 
advantage  or  discrimination  shall  be  deemed  guilty  of  a  misde- 
meanor, and  on  conviction  thereof  shall  be  punished  by  a  fine  of 
not  less  than  five  hundred  dollars  and  not  more  than  five  thou- 
sand dollars;  except  that  where  the  advantage  given  or  discrimi- 
nation practiced  shall  be  in  the  transportation  at  a  less  rate,  as 
aforesaid,  than  the  published  tariff  rate,  the  penalty  on  con- 
viction shall  be  a  fine  of  not  less  than  one  thousand  dolhirs  and 
not  more  than  five  thousand  dollars. 

Mvery  offense  created  by  this  act  sliall  l)e  prosecuted  in  ;i 
court   having  jurisdiction   of   offenses  Avilhin    the  city,   city   and 


RAILROADS.  667 

county,  or  couuty  iu  wliioli  such  offense  was  committed ;  aiul 
whenever  the  offense  is  begun  in  one  jurisdiction  and  completed 
in  another,  it  may  be  proceeded  against  in  either. 

Liability  for  damages. 

Sec.  38.  In  case  any  transportation  company  subject  to  (his 
act,  or  any  person  or  corporation  within  the  provisions  hereof, 
shall  do,  cause  to  be  done,  or  permit  to  be  done,  except  unin- 
tentionally or  innocently  through  a  mistake  of  fact,  any  matter, 
act  or  thing  in  this  act  prohibited  or  declared  to  be  unlawful, 
or  shall  similarly  omit  to  do  any  act,  matter  or  thing  herein 
required  by  this  act  to  be  done,  such  transportation  company, 
person,  or  corporation  shall  be  liable  to  the  penalties  herein- 
before provided  for.  and  shall,  in  addition,  be  liable  to  the  person 
or  persons,  firm  or  corporation  injured  by  such  act  or  omission 
for  the  damages  ))roximately  resulting  therefrom  ;.  and  iu  addi- 
tion to  such  damages,  such  transportation  company,  in  all  cases 
where  the  same  shall  be  guilty  of  extortion  or  unjust  discrimina- 
tion as  defined  in  this  act.  shall  pay  to  such  person,  firm  or 
corporation  so  injured  a  penalty  of  not  less  than  fi\-e  hundred 
dollars  and  not  more  than  five  thousand  dollars. 

Free  passes. 

Sec.  39.  No  railroad  or  other  transportation  company  shall 
grant  free  passes,  or  passes  or  tickets,  at  a  discount,  to  any  per- 
son holding  any  office  of  honor,  trust,  or  profit  iu  this  state,  and 
every  transportation  company  issuing  free  passes  or  tickets  at 
a  discount  in  violation  of  the  provisions  of  this  section  shall  be 
deemed  guilty  of  a  misdemeanor,  and  for  each  offense  shall  be 
l)unished  by  a  fine  of  not  less  than  five  hundred  dollars  nor  more 
than  five  thousand  dollars. 

Published  rate  to  be  deemed  just. 

Sec.  40.  In  all  actions  betweiMi  jM-ivate  i)arties  and  Iraiis- 
portation  companies  siilijcct  lo  the  iirovisions  of  this  acl,  in 
respect  to  any  rate,  charge  order,  rule  or  regulation  pulijislii'd 
as  required  by  this  act,  the  i)ublished  rate,  charge,  order,  rule  or 
regulation  shall  be  deemed  to  be  just  and  reasonable,  and  shall 
not  be  open  to  controxersy  except  in  and  by  way  of  such  pro- 
ceedings for  that  i)urpose  l)efore  the  commission  and  the  courts 
as  are  provided  for  in  this  act. 

Investigation  by  interstate  commerce  commission. 

Sec.  4(»'/.  'I'll''  s;iid  commission  is  hereby  authorized  and 
directed  when  puMir  iiitcresl   require,  lo  lib'  petitions  for  investi- 


GG8  STATUTES    AT   LARGE. 

gatioiis.  or  coinplaiut  or  complaints,  with  tlic  interstate  com- 
merce commission,  and  to  file  such  suit  or  snits.  in  tribunals  or 
courts  of  competent  jurisdiction  as  are  permitted  under  the 
terms  of  what  is  known  as  the  inte/state  commerce  act,  com- 
plaining of  anything  done,  or  omitted  to  be  done  by  common 
carriers  subject  to  the  provisions  of  the  interstate  commerce 
act.  Said  board  is  also  hereby  authorized  and  instructed  to  file 
petitions  for  investigations,  or  complaint,  or  complaints,  and  to 
commence  such  suit  or  suits,  in  tribunals,  or  courts  of  com- 
petent jurisdiction,  complaining  of  the  order,  or  orders,  of  any 
transcontinental  railroad  company,  or  other  common  carriers, 
either  railroad  or  steamship,  raising  freight  rates,  or  entering 
into  contracts  or  combinations  to  raise,  or  maintain  rates,  or  to 
take  any  action  that  will  prevent  competition,  to  and  from,  or 
to  or  from,  California  points  to  points  in  the  United  States  out- 
side of  California.  The  attorney  general  is  hereby  directed  to 
represent  said  board  and  the  people  of  the  State  of  California, 
in  any  proceeding  commenced  under  the  provisions  of  this  section. 

Co-operation  with  interstate  commerce  commission. 

Sec.  40c.  The  said  commission  is  hereby  empowered  and 
directed  to  coiiperate  with  the  interstate  commerce  commission 
in  the  investigation  of  discriminations  in  charges  of  facilities 
for  transportation  of  passengers  or  freight  made  by  any  railroad 
or  other  transportation  company,  between  places  or  persons,  or 
in  the  facilities  for  the  transportation  of  the  same  classes  of 
passengers  or  freight  within  this  state,  or  coming  from  or  going 
to  any  other  state,  and  to  that  end  and  for  either  of  said 
purposes  shall  arrange  for  joint  meetings  with  the  interstate 
commerce  conuuission  or  any  section  thereof  in  the  various  com- 
mercial and  industrial  centers  of  this  state. 

Sessions  of  state  board,  to  be  held  where. 

Sec.  4()(/.  The  state  board  of  railroad  connnissioiicrs  sliall 
meet  ;in(i  hold  a  session  of  such  huard  for  the  purpose  of  inves- 
tig.-itim;  any  discriminations,  or  any  complaint  of  any  citizen 
of  this  state,  against  any  railroad  or  other  transportation  com- 
pany at  least  once  every  six  months,  commencing  May  1.  1!K»!), 
at  each  of  the  following  cities:  San  Francisco,  Los  Angeles, 
San  Diego,  Stockton,  Sacramento,  Oakland,  Fresno,  San  Jose, 
Santa  Barbara,  Redding.  Bakersfield,  Marysville,  San  Bernar- 
dino and  Eureka,  and  at  such  other  cities  or  towns  in  counties 
other    than    those    in    whicli    lln'    cities    hereinabove    named    are 


RAILROADS.  669 

rcspoctively  situated,  when  a  petition  for  a  meeting  of  sucli  i)oar(l 
is  tiled  witli  the  secretary  thereof  by  ten  siiippers.  Notice  of 
siicli  meetings  shall  be  given  by  said  board  by  advertising  same 
for  a  period  of  one  week  in  one  or  more  daily  newspapers  pub- 
lished in  the  city  and  county  of  San  Francisco,  and  for  a  like 
period  in  a  daily  newspaper  in  the  county  where  any  meeting  is 
to  be  held  if  there  be  one  published  therein,  if  not,  then  for  a 
period  of  two  weeks  in  a  weekly  newspaper  published  therein. 
Such  notice  shall  contain  a  request  for  the  public  interested  in 
transportation  matters  to  appear  and  present  any  complaints 
or  file  petitions  for  better  facilities  or  for  reduction  of  rates. 
At  such  meetings  testimony  may  be  taken  in  support  of  such 
complaint  or  petition.  If  demanded  by  any  railroad  or  other 
transportation  company,  affected  by  such  complaint  or  petition, 
the  board  may  hear  such  testimony  as  such  company  may  pre- 
sent ;  whereupon  such  Ijoard  shall  take  such  proceedings  on  such 
complaint  or  petition  as  may  be  authorized  by  the  constitution 
and  laws  of  this  state.  The  testimony  taken  at  all  hearings  of 
such  board  authorized  by  the  provisions  of  this  act  shall  be 
reduced  to  writing,  and  a  copy  of  the  same  shall  be  reported  to 
the  legislature  at  the  beginning  of  each  regular  session  thereof. 

Construction  of  certain  words. 

Sec.  41.  The  words  "commission,"  "commissioners"  and 
"railroad  commission."  as  used  in  this  act,  shall  be  construed 
as  meaning  the  board  of  railroad  commissioners  of  the  State  of 
('aliforuia,  and  the  word  "commissioner"  as  used  in  this  act 
shall  be  construed  as  meaning  any  one  of  the  members  of  the 
board  of  railroad  commissioners  of  the  State  of  California. 

Application  of  act. 

Skc.  42.  This  act  shnl!  be  conslrued  and  held  (o  apply  only 
lo  the  transporlation  df  i)r(ip(M-ly  iind  passciigei's  williiii  (he 
Slate  of  California. 

Repeal  of  certain  acts. 

Sec.  43.  An  act  entitled  "An  act  to  create  the  office  of  com- 
missioner of  transportation,  and  to  define  its  powers  and  duties  ; 
to  fix  the  maximum  charges  for  transporting  passengers  and 
freights  on  certain  railroads,  and  to  prevent  extortion  and  unjust 
(lis<'rimination  thereon,"  approved  Ajiril  1,  1S78,  and  also  an 
net  entitled  "An  act  to  organize  and  define  the  powers  of  the 
board  of  railroad  commissioners,"  approved  April  15,  1880,  and 


670  STATUTES    AT  LAKGE. 

all  acts  or  parts  of  acts  inconsistont  with  tho  provisions  of  this 
act,  are  hereby  repealed. 

Time  act  shall  take  effect. 

Sec.  44.     This  act  shall  take  effect  immediately. 


An  act  requiring  persons,  corporations,  receivers  or  trustees 
operating  lines  of  railway  to  furnish  cars  for  shipment  of 
freight  upon  written  application  from  shippers  of  freight  and 
providing  a  penalty  and  damages  to  be  paid  by  such  persons, 
corporations,  receivers  or  trustees  to  shippers  for  failure  to 
do  so  and  providing  a  penalty  and  damages  to  be  paid  to 
persons,  corporations,  receivers  or  trustees  operating  such 
railway  lines  by  the  applicant  or  shipper  for  failure  to  load 
or  unload  cars  so  furnished. 

Approved  April  20,   1909  ;  stats.   1909,  p.   1007. 

The  t)eoi)le  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Duty  of  railroads  to  supply  cars  to  shippers — Time  in  which  to 
furnish  cars. 
Skction  1.  When  the  owner,  manager  or  shipper  of  any 
freight  of  any  kind  shall  make  application  in  writing  to  a:ny 
superintendent,  agent  or  other  person  in  charge  of  transpor- 
tation of  any  railway  company  or  person,  corporation,  receiver 
or  trustee  operating  any  line  of  railway,  at  the  point  where 
cars  are  desired  upon  which  to  ship  any  freight,  it  shall  be  the 
duty  of  such  railway  company,  corporation,  receiver,  trustee 
or  other  person  in  charge  thereof,  to  supply  the  number  of 
cars  so  required  at  the  point  indicated  in  the  application  within 
the  time  hereinafter  specified  after  receipt  of  such  application, 
and  such  railway  company,  person,  corporation,  trustee  or 
receiver  shall  supply  such  cars  to  the  persons  so  applying  there- 
for in  the  order  in  which  such  applications  are  made,  without 
giving  preference  to  any  person ;  provided,  if  the  application 
be  for  ten  cars  or  less,  the  same  shall  be  furnished  in  five 
days;  provided,  if  the  application  be  for  ten  cars  and  less  than 
fifty  cars  the  same  shall  be  furnished  in  ten  days;  and  pro- 
vided further,  that  if  the  application  be  for  fifty  cars  or  more, 
such  railway  company,  person,  corporation,  receiver  or  trustee 


RAILEOADS.  671 

shall  have  fifteen  full  days  iu  which  to  supply  the  cars ;  if 
the  appli(?ation  be  for  cars  for  the  transportation  of  perish- 
able freight  the  number  of  cars  applied  for  shall  be  furnished 
within  forty-eight  hours;  provided,  that  the  point  to  which 
said  freight  is  to  be  shipped  is  on  the  line  of  the  railway  com- 
pany to  which  such  application  for  cars  is  made  or  on  the  line 
of  a  railroad  with  which  the  railway  company  to  which  such 
application  is  made  has  connections  and  to  which  point  it  ordi- 
narily receives  freight  for  shipment;  and  provided  further,  that 
i-ailway  companies  to  which  such  application  may  be  made 
shall  not  be  obligated  under  the  terms  hereof  to  furnish  cars 
of  any  class  required  for  the  transportation  of  the  class  of 
commodity  to  be  shipped  and  for  which  application  is  mailc. 
unless  it  owns  or  usually  operates  such  class  of  cars.  All  cars 
supplied  in  compliance  with  the  provisions  of  this  section  shall 
be  suitable  for  the  purpose  for  which  they  are  ordered.  The 
time  herein  stated  for  the  delivery  of  cars  mentioned  in  any 
such  application  shall  begin  to  run  from  the  hour  of  seven 
o'clock  A.  M.  of  the  next  day  following  the  day  of  the  receipt 
of  any  such  application  by  the  railway  company,  corporation, 
receiver,  trustee  or  other  person  in  charge  to  whom  it  is  given. 

Application  shall  state  what. 

.^EC.  2.  Said  application  for  cars  shall  state  the  number  of 
cars  desired,  the  kind  of  freight  to  be  shipped,  the  point  of 
destination,  the  time  and  place  at  which  they  are  desired  ;  pro- 
vided, that  the  place  designated  where  the  cars  are  to  be  fur- 
nished shall  be  at  some  station  or  switch  on  the  railroad  of  the 
person,  corporation,  receiver  or  trustee  to  whom  or  to  whose 
agent  such  application  is  made. 

Penalty  for  failure  to  furnish. 

Sec.  3.  When  cars  are  applied  for  under  the  provisions  of 
this  act,  if  they  are  not  furnished  as  herein  provided,  the  rail- 
way company,  person,  corporation,  receiver  or  trustee  so  fail- 
ing to  furnish  them  shall  be  liable  and  immediately  indebted 
to  the  party  or  parties  so  applying  for  said  car  or  cars  in  the 
sum  of  five  dollars  per  day  for  each  car  failed  to  be  so  fur- 
nished, to  be  recovered  in  any  court  of  competent  jurisdiction, 
and  in  addition  all  actual  damages  that  such  applicant  may 
sustain  by  the  failure  to  furnish  said  car  or  cars. 


672  STATUTES    AT   LARGE. 


Deposit  of  freight  cliarges — Failure  of  applicant  to  toad  cars; 
penalty  for. 
Sec.  4.  Such  applicant  shall,  at  the  time  of  applying  for 
such  car  or  cars,  deposit  with  the  agent  of  such  company  or 
with  such  person,  corporation,  receiver  or  trustee  one  fourth 
of  the  amount  of  the  freight  charge  for  the  use  of  such  car  or 
cars,  if  such  agent,  or  such  person,  corporation,  receiver  or 
trustee  shall  require  such  deposit ;  and  such  applicant  shall 
within  forty-eight  hours  after  such  car  or  cars  have  been 
delivered  and  placed  as  heretofore  provided  fully  load  the  same  ; 
and  upon  failure  to  do  so,  he  shall  be  liable  and  immediately 
indebted  and  pay  to  such  company,  person,  corporation,  receiver 
or  trustee  the  sum  of  six  dollars  per  day  for  each  car  not 
used  ;providcd,  that  where  applications  are  made  on  several 
days,  all  of  which  are  filled  upon  the  same  day,  the  applicant 
shall  have  forty-eight  hours  to  load  the  car  or  cars  furnished 
on  the  first  application,  and  the  next  forty-eight  hours  to  load 
the  car  or  cars  furnished  on  the  next  application,  and  so  on  ; 
and  the  penalty  herein  prscribed  shall  not  accrue  as  to  any 
car  or  lot  of  cars  applied  for  on  any  one  day,  until  the  period 
within  which  they  may  be  loaded  has  expired,  and  if  the  said 
applicant  shall  not  use  such  cars  so  ordered  by  him.  he  shall 
forfeit  and  pay  to  the  said  railroad  company  in  addition  to  the 
penalty  herein  prescribed,  the  actual  damages  that  such  com- 
pany may  sustain  by  the  failure  of  the  applicant  to  use  said 
cars.  Every  such  company,  person,  corjioration,  receiver  or 
trustee  shall  have  a  lieu  upon  any  deposit  made  in  accordance 
with  this  section  for  any  damages  or  penalties  accruing  to  it 
l)y  failure  to  load  any  car  or  cars  delivered  and  placed  as  in 
this  act  provided. 

Cars  must  be  moved  when  loaded — Time  for  unloading  cars — 
Demurrage — Rates  for  demurrage. 
Sec.  5.  The  time  within  which  said  cars  are  to  be  loaded 
shall  begin  to  run  from  the  hour  of  seven  o'clock  A.  M.  of  the 
day  next  following  the  day  the  same  are  furnished  at  the  place 
required  and  at  the  time  specified  in  the  application  therefor. 
If  the  said  applicant  shall  not  use  such  cars  so  ordered  by  him. 
be  shall  so  notify  the  railroad  furnishing  the  same,  and  he  shall 
l)e  liable  for  the  penalty  above  set  forth  to  the  railway  com- 
pany,  corporation,   receiver,   trustee   or  other  person   in   charge 


KAILUOADS.  673 

furuishiug-  the  same  for  the  period  of  one  day  after  said  noti- 
fication. When  cars  have  been  furnished  and  loaded  it  shall 
be  the  duty  of  the  railway  company,  corporation,  receiver,  trus- 
tee or  other  person  in  charge  to  promptly  remove  the  same 
from  the  point  whex-e  loaded  and  deliver  the  same  to  the  con- 
necting railroad  or  to  the  person  or  persons  to  whom  they  are 
consigned,  within  a  reasonable  time.  All  persons  to  whom  cai-s 
are  consigned  shall  unload  the  same  within  forty-eight  (48) 
hours  after  delivery  thereof  to  the  said  consignee  at  the  usual 
and  appropriate  point  of  unloading ;  and  upon  failure  to 
unload  said  car  or  cars  within  the  time  herein  specified,  after 
the  delivery  thereof  as  herein  stated,  the  consignee  thereof  shall 
be  liable  and  shall  be  held  to  be  immediately  indebted  to  the 
railway  company,  corporation,  receiver,  trustee  or  other  per- 
son in  charge,  delivering  said  cars,  in  the  sum  of  six  dollars 
per  day,  or  fraction  of  a  day,  for  each  car  so  left  unloaded. 
The  time  for  unloading  such  cars  shall  be  computed  in  the 
manner  hereinbefore  prescribed  for  loading  cars.  Nothing  in 
this  act  contained  shall  be  construed  to  prevent  any  railway 
company,  person,  corporation,  receiver  or  trustee,  operating  any 
line  of  railway  from  making  and  enforcing  any  and  all  necessary 
rules  for  demurrage  to  insure  the  loading  and  unloading  of  cars 
within  twenty-four  hours  after  delivery  thereof  to  consignors 
or  consignees  at  the  usual  and  appropriate  point  of  loading 
or  unloading ;  provided,  the  rate  or  charge  for  demurrage  so 
made  shall  not  exceed  three  dollars  for  the  first  day  after  said 
period  of  twenty-four  hours  for  each  car,  and  thereafter  the  rate 
or  charge  for  demurrage  shall  be  the  sum  of  six  dollars  per  day 
for  each  car  as  hereinabove  in  this  section  provided. 

Claims  for  failure  to  furnish  cars. 

Sec.  6.  Any  claim  which  any  person  may  have  against  any 
railway  company,  corporation,  receiver,  trustee  or  other  person 
in  charge,  for  failure  to  furnish  cars  or  for  damages  sustained 
by  reason  thereof,  shall  be  assignable  in  the  same  manner,  and 
to  the  same  extent,  as  any  assignable  claim  or  chose  in  action, 
and  suit  or  action  for  the  collection  thereof  may  be  brought 
against  any  railway  company,  corporation,  receiver,  trustee  or 
other  person  in  charge  by  any  person  having  any  such  claim, 
or  by  the  assignee  thereof. 

29— CL 


074  STATl'TES    AT    LAUdE. 

What  evidence  necessary  in  suits. 

Sec.  7.  It  shall  be  necessary  for  the  party  or  parties  bring- 
ing suit  against  any  railway  company,  person,  corporation, 
receiver  or  trustee  under  the  provisions  of  this  act,  to  show  by 
evidence  that  he  or  they  had  on  hand  at  the  time  any  demand 
for  cars  was  made  the  amount  of  oil,  lumber,  wheat  or  other 
grain,  wool,  liides,  fruit  or  other  freight,-  necessary  to  load  the 
cars  so  ordered ;  provided,  no  charge  for  failure  of  any  railway 
(u)mpany,  corporation,  receiver,  trustee  or  other  person  in  chai'ge 
to  furnish  a  car  or  cars  as  herein  required  shall  be  made  or 
enforced,  or  damages  therefor  claimed,  when  such  failure  is 
caused  by  public  calamity,  strikes,  washouts,  acts  of  God,  the 
public  enemy,  mobs,  riots,  wrecks,  fires  or  accidents.  The 
causes  in  this  act  enumerated,  which  afford  an  excuse  on  the 
part  of  a  railroad  for  not  furnishing  the  cars  as  required,  shall 
likewise,  and  to  the  same  extent,  excuse  the  owner,  manager 
or  shipper  or  consignee  of  any  freight  from  all  liability  here- 
under for  failuiv  to  load  or  unload  cars  as  herein  required. 

Act  applies  to  winat  shipments. 

Sec.  S.  This  act  shall  apply  only  to  shipments  begun  and 
terminating  within  the  State  of  California. 


RULES    OF    THE    RAILROAD    COMMISSION. 


Rules   of    procedure    of   the    railroad    commission    of   the    State    of 
California. 

Adopted   Ijy   tlie   Commission  June    S,    1909. 

The  railroad  commission  of  the  State  of  California  hereby 
adopts  the  following  rules  to  govern  the  exercise  of  the  judicial 
power  conferred  upon  the  commission  by  the  state  constitution, 
and  the  laws  made  in  pursuance  thereof : 

Rl'EE    I. 

.\tiy  person  believing  himself  aggrieved  by  any  railroad  or 
Dtiier  transportation  company,  in  any  particular,  may  file  a 
verified  complaint  against  such  railroad  or  transportation  com- 
pany with  the  secretary  of  the  commission.     The  secretary  must 


KULES    OK    KAILIIOAU    COMMISSION.  G75 

indorse  ou  the  complaint  tlie  clay,  month,  and  year  that  it  is 
filed,  and  must,  at  the  request  of  the  commission  issue  a  sum- 
mons thereon. 


The  summons  must  be  directed  to  the  defendant,  must  l)e 
signed  by  the  secretary,  and  attested  by  the  seal  of  the  commis- 
sion, and  must  contain  : 

1.  The  names  of  the  parties  to  the  proceeding. 

2.  A  statement  of  the  nature  of  the  complaint. 

3.  A  direction  that  the  defendant  appear  and  answer  said 
complaint  at  a  time  and  place  specified  by  said  commission. 

RULE  III. 


The  summons  may  be  served  by  any  citizen  of  the  state,  and 
shall  be  served  by  delivering-  a  copy  thereof,  together  with  a 
copy  of  the  complaint,  to  the  defendant,  or  if  the  defendant 
is  a  corporation,  to  the  president,  secretary,  treasurer,  or  man- 
aging or  designated  agent  thereof.  Proof  of  service  of  summons 
and  complaint  must  be  made  by  certification. 


From  the  time  of  service  of  the  summons  and  copy  of  com- 
plaint, the  commission  shall  be  deemed  to  have  acquired  jurisdic- 
tion of  the  parties  and  subject-matter.  The  voluntary  appear- 
ance of  the  defendant  is  equivalent  to  personal  service. 


The  complaint  must  contain  : 

1.  Tht>  names  of  the  parties  to  the  ])roceediug. 

2.  A  statement  of  the  cause  of  complaint,  in  ordinary  and 
concise  language,  giving  such  particulars  of  time,  place,  and  cir- 
cumstances as  may  enable  the  defendant  to  answer  the  sauic 
intelligently. 

o.  A  demand  of  the  relief  claimed. 


The  complaiiiaut  may  unite  several  causes  of  action  in  the 
same  comphiint,  but  each  cause  must  l)e  separately  pleaded 
therein. 


<J7(J  STATUTES   AT   LARGE. 

RULE  VII. 
The  defcmlant  may,  within  the  tiruo  ivquirod  in  the  summons 
to  answer,  demur  to  tlie  complaint  upon  tlie  following  grounds: 

1.  That  it  does  not  state  facts  sufficient  to  authorize  the  pro- 
ceedings. 

2.  That  it  contains  more  than  one  cause  of  action,  and  that 
such  causes  are  not  separately  pleaded. 

3.  That  it  is  ambiguous,  uncertain,  or  unintelligible. 

RULE   VIII. 

If  the  demurrer  is  sustained,  the  complainant  may,  within 
ten  days  thereafter,  amend  his  complaint.  If  the  demurrer  is 
overruled,  the  defendant  must  within  ten  days  thei*eafter,  answer 
the  complaint. 

RULE    IX. 

The  answer  of  the  defendant  must  contain  : 

1.  A  general  or  specific  denial  of  the  allegations  of  the  com- 
plaint controverted  by  him. 

2.  A  statement  of  any  new  matter  of  defense,  or  in  mitiga- 
tion or  explanation  of  charges  made  in  the  complaint. 

3.  The  answer  of  the  defendant  shall  be  verified  and  filed  with 
the  secretary  of  the  commission  and  a  copy  thereof  served  bj' 
defendant  upon  complainant. 

RULE  X. 

The  complainant  may,  within  ten  days  after  the  service  of  the 
answer,  demur  to  the  same  as  insufficient,  and  if  the  demurrer 
is  sustained,  the  defendant  may,  within  ten  daj's  thereafter, 
amend  his  answer. 

RULE  XI. 

The  complaint,  answer,  and  demurrer  must  be  subscribed  by 
the  party  or  by  some  attorney  at  law  in  his  behalf.  The  com- 
plaint and  answer  must  be  verified  in  the  same  manner,  by  the 
persons  and  in  the  form  required  by  the  Code  of  Civil  Pro- 
cedure in  civil  cases. 

RULE   XII. 

All  pleadings  shall  be  in  typewriting  on  one  side  of  the  sheet 
only ;  each  line  and  page  shall  be  numbered  and  three  copies 
of  every  pleading  shall  be  filed  with  the  commission. 

1.  Every  complaint  shall  specify  the  section  or  sections  of  the 
law  claimed  by  complainant  to  have  been  violated  by  the  facts 
pleaded. 


RULES    OF    KAII.UOAI)    COlSrMI.SSION.  677 

2.  Dcnmrroi-s  to  pleadiuss  shall  he  accompanied  liy  a  written 
statement  of  i)oints  and  authorities  in  short  form  or  such  de- 
murrers will  be  disregarded   by  the  conuuission. 

KULK  XI  n. 
The  provisions  of  sections  452,  4.53,  462,  463,  464,  465,  46!). 
470,  471,  472,  473,  and  476  of  the  Code  of  Civil  Procedure  shall 
be  applicable  to  pleadings  before  the  commission. 

RULE    XIV. 

When  issue  has  been  joined,  the  commission,  upon  application 
of  either  party,  or  of  its  own  motion  shall  fix  the  day  and 
place  of  trial. 

1.  Good  cause  appearing  therefor,  the  time  or  place  of  trial 
may  be  changed,  but  no  order  changing  the  time  or  place  of  trial 
shall  be  made  without  proof  of  five  days'  notice  of  the  applica- 
tion therefor. 

2.  The  secretary  shall  notify  all  parties  of  the  time  and  place 
of  trial  as  provided  by  law. 

3.  Stipulations  entered  into  between  parties  extending  time 
to  move  or  plead  will  not  be  considered  by  the  commission.  All 
extensions  of  time  to  move  or  plead  must  be  secured  from  the 
commission  after  two  days'  notice  to  the  adverse  party  of  appli- 
cation therefor,  and  such  applications  shall  be  accompanied  by 
an  affidavit  showing  necessity  therefor. 

RULE   x\'. 
If  the  defendant  fails   to  appear  and  answer   the  complaint, 
the  commission  shall  render  such  decision  thereon,   within   the 
relief  demanded  in  the  complaint,  as  the  facts  may  warrant. 

RULE    XVL 

The  secretary  of  the  commission  must  keep  a  calendar  of  the 
proceedings  at  issue,  according  to  the  date  of  service  of  the  sum- 
mons ;  and  sections  595  and  .596  of  the  Code  of  Civil  Procedure 
shall  be  applicable  to  the  proceedings  to  lie  had  after  said  pi'o- 
ceedings  are  entered  on  the  calendar. 

RULE   xvii. 
Any    pai'ty    to    such    proceeding,    feeling    aggrieved    at     the 
decision  of  the  commission  may,  within  thirty  days  al'trr  such 
decision.  ai)i)ly   to  llie  commission    for  a    r(4i(>aring:   sucli   appli- 


GTS     .  STATUTES    AT    LAKGE. 

cntioii  shiill  bo  in  writing,  and  shall  be  filed  with  the  secretary- 
The  application  may  ne  made  upon  any  or  all  of  the  following 
grounds : 

1.  Irregularity  in  the  proceedings  or  abuse  of  discretion,  by 
which  the  party  was  prevented  from  having  a  fair  hearing. 

2.  Accident  or  surprise  which  ordinary  prudence  could  not 
have  guarded  against. 

3.  Newly  discovered  evidence,  material  for  the  party  making 
the  application,  which  could  not  with  reasonable  diligence  have 
been  discovered  and  produced  at  the  trial. 

4.  Insufficiency  of  evidence  to  justify  the  decision,  or  that  it 
is  against  the  law. 

5.  Error  of  law  occurring  on  the  trial.  Sections  658,  659. 
and  6G0  of  the  Code  of  Civil  Procedure  shall  be  applicable  to 
such  rehearing. 

EULE  xviii. 

Sections  668,  669,  and  670  of  the  Code  of  Civil  Procedure 
shall  be  applicable  to  the  entry  of  the  decisions  of  these  com- 
missioners. 

KULE    XIX. 

The  provisions  of  part  IV  of  the  Code  of  Civil  Procedure, 
relating  to  the  general  principles,  kinds,  and  degrees,  production, 
and  effect  of  evidence,  and  of  the  rights  and  duties  of  witnesses, 
shall  be  applicable  to  proceedings  before  the  commission. 

RULE   XX. 

The  word  "person"  in  these  rules  includes  corporations  and 
firms^the  singular  the  plural,  and  the  masculine  the  feminine 
and  neuter  genders. 

RULE   XXI. 

These  rules  may  be  amended  at  any  regular  meeting  of  the 
commission. 

RULE   XXII. 

These  rules  shall  be  in  force  from  and  after  the  first  day  of 
July,  1909. 

A.  C.  Irwin,  First  District. 
H.  D.  LovELAND,   Second  District, 
Theodore  Summerland,  Third  District, 
Railroad  Commission  of  the  f>tate  of  California. 

Attest:  W.  D.  Wagner,  Secretary. 


STREET    RAILROADS.  679 


STREET  RAILROADS. 

For  acquisition  and  sale  of  franchises,  see  Franchises. 
See,  also,  Civ.  C.  §§  497  to  .511 ;  Pol.  C.  §§  3246,  3250. 

An  act  to  limit  and  fix  the  rates  of  fares  on  street  railroads 
in  cities  and  towns  of  more  than  one  hundred  thousand 
inhabitants. 

Approved  January  1,   1878;  stats.   1877-8,  p.   18. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Rate  to  be  not  higher  than  five  cents. 

Section  1.  No  street  railroad  in  any  city  or  town  of  this 
state,  with  more  than  one  hundred  thousand  inhabitants,  shall 
be  allowed  to  charge  or  collect  a  higher  rate  of  fare  than  five 
cents  for  each  passenger  per  trip  of  any  distance  in  one  direc- 
tion, either  going  or  coming,  along  any  part  of  the  whole  length 
of  the  road  or  its  connections. 

Penalty  for  violation. 

Sec.  2.  Every  violation  of  the  provisions  of  section  one  of 
this  act  shall  subject  the  owner  or  owners  of  the  street  railroad 
violating  the  same  to  a  forfeiture  to  the  person  so  unlawfully 
charged,  or  paying  more  than  is  therein  allowed  to  be  charged, 
the  sum  of  two  hundred  and  fifty  dollars  for  each  and  every 
instance  when  such  unlawful  charge  is  made  or  collected,  to 
be  recovered  by  suit  in  any  court  of  competent  jurisdiction ; 
such  causes  of  action  shall  be  assignable,  and  the  action  may  be 
maintained  by  the  assignee  in  his  own  name,  and  several  causes 
of  action  arising  out  of  unlawful  charges  or  collections  from 
different  persons  may  be  vested  in  the  assignee  and  united  in 
the  same  action. 

Time  act  shall  take  effect. 

Sec.  3.     This  act  shall  be  in  force  from  its  pa.ssage. 
(See,  also,  Civ.  C.  §501.) 


r>.SO  STATUTES    AT    I.AKCiE. 


An  act  to  confirm,  ratify,  and  make  valid  ordinances  heretofore 
passed  by  the  trustees,  council,  or  other  body  intrusted  with 
the  government  of  any  incorporated  city,  city  and  county,  or 
town,  giving  authority  and  permission  to  propel  cars  upon 
railroad  tracks  laid  through  the  streets  and  public  highways 
of  such  incorporated  city,  city  and  county,  or  town,  by 
electricity. 

Approved  February  25,  1891;   stats.   1891.  p.   12. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Authority  to   lay  railroad  tracks — Electricity — Regulations. 

Section  1.  In  all  cases  where,  prior  to  the  passage  of  this 
act,  authority  to  lay  railroad  tracks  through  streets  or  public 
highways  of  any  incorporated  city,  city  and  county,  or  town,  has 
been  obtained  for  a  term  of  years,  not  exceeding  fifty,  from  the 
trustees,  council,  or  other  body  to  whom  was  intrusted  the  gov- 
ernment of  the  city,  city  and  county,  or  town,  and  permission 
has  been  granted  by  such  governing  body  to  propel  cars  upon 
such  tracks  by  electricity,  such  authority  and  permission  shall 
be,  and  shall  be  held  and  deemed,  as  valid  and  legal  as  the  same 
would  have  been  if,  at  the  time  of  the  obtaining  thereof,  section 
four  hundred  and  ninety-seven-  of  the  Civil  Code  had  expressly 
declared  that  permission  might  be  given  to  propel  cars  upon 
such  tracks  by  electricity,  as  well  as  by  horses,  mules,  or  wire 
ropes  running  under  the  streets  and  propelled  by  .stationary 
steam  engines  ;  provided,  that  all  such  permissions  or  franchises 
heretofore  granted  shall  be  subject  to  the  provisions  of  the  laws 
of  this  state  applicable  to  street  railroads  in  general,  and  sub- 
ject to  the  same  regulations  from  city,  city  and  county,  and 
town  authorities  as  if  the  said  franchises  were  hereafter  granted. 

Time  act  shall  take  effect. 

Sec.  2.  This  act  shall  take  effect  and  he  in  force  from  and 
after  its  passage. 

Note. — Constitutional  (People  vs.  Los  Avr/eles.  etc.,  Rji.  Co., 
91  Cal.  p.  338). 

(See,  also,  Civ.  C.  §407.) 


STREET    KAILKOADS.  (J81 


An  act  requiring  city,  city  and  county,  or  town  authorities  to 
exact  and  require  from  persons  or  corporations  seeking  per- 
mission and  authority  to  lay  railroad  tracks  through  streets 
or  public  highways  of  any  incorporated  city,  city  and  county, 
or  town,  a  satisfactory  promise  and  undertaking  to  permit  and 
allow  mail  carriers  in  the  employ  of  the  United  States  Gov- 
ernment at  all  times,  while  engaged  in  the  actual  discharge 
of  dui:y,  to  ride  on  the  cars  of  such  railroad  without  paying 
fare;  and  to  make  such  promise  and  undertaking  a  condition, 
precedent  to  the  granting  of  such  permission  and  authority 
by  such  governing  board. 

Approved  February  27,   1S93  ;   stats.   IS'JS,  p.   ii. 

The  pcoiJle  of  the  State  of  California,  represented  in  senate  and 
assernbly,  do  enact  as  follows: 

Authorities  to  exact  promise  from  street  railroads  to  carry  letter 
carriers  free. 
Section  1.  In  all  enses  hereafter,  where  application  is  made 
to  the  city,  city  and  county,  or  town  authorities,  or  to  the 
trustees,  council  or  other  Ijody  to  whom  is  intrusted  the  govern- 
ment of  the  city,  city  and  county,  or  town,  for  permission  and 
authority  to  lay  railroad  tracks  through  streets  or  public  high- 
ways of  any  incorporated  city,  city  and  county,  or  town,  such 
authorities,  before  granting  such  permission  and  authority,  in 
addition  to  the  terms  and  restrictions  which  they  are  now,  by 
law,  authorized  to  impose,  must  exact  and  require  from  the 
persons  or  corporation  asking  or  seeking  such  permission  and 
authority,  a  satisfactory  promise  and  undertaking  to  permit  and 
allow  mail  carriers  in  the  employ  of  the  United  States  govern- 
ment, at  all  times,  while  engaged  in  the  actual  discharge  of 
duty,  to  ride  on  the  cars  of  such  railroad  without  paying  any 
sum  of  money  whatever  for  fare  or  otherwise.  And  such  gov- 
erning body  of  city,  city  and  county,  or  town  authorities  must 
make  such  promise  and  undertaking  on  the  part  of  such  per- 
sons or  corporations  a  condition  precedent  to  the  granting  of 
such  permission  and  authority  to  lay  railroad  tracks  through 
streets  or  public  highways  of  such  city,  city  and  county,  or 
town  ;  provided,  that  all  such  permis-sions  and  franchises  shall 
be  subject  to  all  other  provisions  of  the  laws  of  this  state  appli- 
cable to  street  railroads  in  general,  and  sub.iect  to  regulations 
from  city,  city  and  county,  and  town  authorities. 


G82  STATUTES    AT   LARGE. 

Time  act  shall  take  effect. 

>Sec.  2.     This  act  shall  take  effect  and  be  in  full  force  from 
ami  after  its  passage. 


An  act  to  authorize  cities  and  towns  to  grant  franchises  for  the 
construction  and  maintenance  of  railroads  beyond  the  limits 
of  such  cities  or  towns  leading  to  public  parks  owned  thereby. 

Became  a  law,  under  constitutional  provision,  without  Governor's 
approval,  March  1,   1897  ;  stats.   1897,  p.  46. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Railroad  franchises   may   be  granted  outside   city   limits — Fare. 

Section  1.  It  shall  he  lawful  for  the  council,  trustees,  or 
other  governing  body  of  any  city  or  town  owning  public  parks 
situated  outside  of  said  city  or  town,  to  grant  franchises  for 
the  building  and  operation  of  railroads  from  any  point  in,  or  at 
the  exterior  boundary  of  such  city  or  town,  to,  in,  or  through 
such  park,  in  the  same  manner  and  to  the  same  extent  as  it 
now  has  power  to  grant  the  same  for  street  railroads  within  the 
limits  of  such  city  or  town ;  provided,  that  in  addition  to  all 
other  conditions,  it  shall  be  made  a  condition  of  such  franchise 
that  the  fare  of  passengers  on  such  road  or  roads  shall  never 
exceed  five  cents  for  a  single  trip. 

Government  of  railroads  so  chartered. 

Sec.  2.  All  railroads,  except  as  otherwise  provided  in  this 
act,  authorized  by  this  act  to  be  so  chartered  shall  be  governed 
by  the  provisions  of  part  four,  title  four,  of  the  Civil  Code  of 
California,  concerning  street  railroads  and  corporations,  so  far 
as  the  same  shall  be  applicable  thereto,  and  of  all  acts  amenda- 
tory thereof.  Also  by  the  provisions  of  "An  act  providing  for 
the  sale  of  railroad  and  other  franchises  in  municipalities  and 
relative  to  granting  of  franchises."  approved  March  twenty- 
third,  eighteen  hundred  and  ninety-three. 

Time  act  shall  take  effect. 

Sec.  3.     This  net  shall   take  effect  immediatelv. 


TKA  DE-SI  ARKS.  OSo 


TRADE-MARKS. 

An  act  to  protect  the  owners  of  bottles,  boxes,  siphons,  and  kegs 
used  in  the  sale  of  soda  waters,  mineral  or  aerated  waters, 
porter,  ale,  cider,  ginger  ale,  milk,  cream,  small  beer,  lager 
beer,  weiss  beer,   beer,  white  beer,   or  other   beverages. 

Approved  March  31,  1891;  stats.  1801,  p.  217. 
Amended  March  5,  1903  ;  stats.  1903,  p.  83. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Description  to  be  filed  with  county  clerk  and  secretary  of  state. 
Section  1.  Any  aud  all  persons  engaged  in  manufacturing, 
bottling,  or  selling  soda  waters,  mineral  or  aerated  waters,  porter, 
ale,  beer,  cider,  ginger  ale,  milk,  cream,  small  beer,  lager  beer, 
weiss  beer,  white  beer,  or  other  beverages  in  bottles,  siphons,  or 
kegs,  with  his.  her,  its,  or  their  name  or  names,  or  other  marks 
or  devices  branded,  stamped,  engraved,  etched,  and  blown,  im- 
pressed, or  otherwise  produced  upon  such  bottles,  siphons,  or 
kegs,  or  the  boxes  used  by  him,  her,  it,  or  them,  may  file  in  the 
office  of  the  clerk  of  the  county  in  which  his,  her,  its,  or  their 
principal  place  of  business  i.s  situated,  and  also  in  the  office  of  the 
secretary  of  state,  a  description  of  the  name  or  names,  marks 
or  devices,  so  used  by  him,  her,  it,  or  them,  respectively,  and 
cause  such  description  to  be,  printed  once  in  each  week  for 
three  weeks  successively,  in  a  newspaper  published  in  the  county 
in  which  said  notice  may  have  been  filed  as  aforesaid. 

Unlawful  acts. 

Sec.  2.  It  is  hereby  declared  to  be  unlawful  for  any  person 
or  persons,  corporation  or  corporations,  to  fill  with  soda  waters, 
mineral  or  aerated  waters,  porter,  ale,  cider,  ginger  ale.  milk, 
cream,  beer,  small  beer,  lager  beer,  weiss  beer,  white  beer,  or 
other  beverages,  or  with  medicine,  compounds,  or  mixtures,  any 
bottle,  box,  siphon,  or  keg,  so  marked  or  distinguished,  as  afore- 
said, with  or  by  any  name,  mark,  or  device,  of  which  a  descrip- 
tion shall  have  l)een  filed  and  pul)lished,  as  provided  in  section 
one  of  this  act,  or  deface,  erase,  obliterate,  cover  up,  or  other- 
wise removed  or  conceal  any  such  name,  mark  or  device  thereon, 
or  to  sell,  buy,  give,  take,  or  otherwise  dispose  of  or  traffic  in 
the  same,  without  the  written  consent  of,  or  unless  the  same 


<;84  STATL'TES    AT    LAKCIO. 

shall  have  bceu  j)iirchased  from  the  person  or  persons,  corpora- 
tion or  corporations,  whose  mark  or  device  shall  be  or  shall 
have  been  in  or  upon  the  bottle,  box,  siphon,  or  keg  so  filled, 
trafficked  in,  used,  or  handled  as  aforesaid.  Any  person  or  per- 
sons or  corporation  offending  against  the  provisions  of  this  sec- 
tion shall  be  deemed  guilty  of  a  misdemeanor,  and  shall  be 
punished  for  the  first  offense  by  imprisonment  not  less  than  ten 
days  nor  more  than  six  months,  or  by  a  line  of  fifty  cents  for 
each  and  every  such  bottle,  box,  siphon,  or  keg  so  filled,  sold, 
used,  disposed  of,  bought,  or  trafficked  in.  or  by  both  such  fine 
and  imprisonment ;  and  for  each  subspcpient  offense  by  imprison- 
ment not  less  than  twenty  days  nor  more  than  one  year,  or  by 
a  fine  of  not  less  than  one  dollar  nor  more  than  five  dollars,  for 
each  and  every  bottle,  box,  siphon,  and  keg  so  filled,  sold,  used, 
disposed  of,  bought  or  trafficked  in,  or  by  both  such  fine  and 
imprisonment,  in  the  discretion  of  the  magistrate  before  whom 
tlie  offense  shall  be  tried. 

Use  presumptively  unlawful. 

Sec.  3.  The  use  by  any  person  other  than  the  person  or 
persons,  corporation  or  corporations,  whose  device,  name  or 
mark  shall  be  or  shall  have  been  upon  the  same,  without  such 
written  consent  or  purchase,  as  aforesaid,  of  any  such  mark  or 
distinguished  bottle,  box,  siphon,  or  keg,  a  description  of  the 
name,  mark,  or  device  w^hereon  shall  have  been  filed  and  pub- 
lished, as  herein  provided,  for  the  sale  therein  of  soda  waters, 
mineral  or  aerated  waters,  porter,  ale,  cider,  ginger  ale,  milk, 
cream,  beer,  small  beer,  lager  beer,  weiss  beer,  white  beer,  or 
other  beverages,  or  any  article  of  merchandise,  medicines,  com- 
pounds, or  preparations,  or  for  the  furnishing  of  such  or  similar 
beverages  to  customers,  or  the  buying,  selling,  using,  disposing 
of,  or  trafficking  in  of  any  such  bottles,  boxes,  siphons,  or  kegs, 
by  any  person  other  than  said  persons  or  corporations  having  a 
name,  mark,  or  device  thereon,  or  such  owner  without  such 
written  consent,  or  the  having  by  any  junk  dealer,  or  dealer  in 
secondhand  articles,  possession  of  any  such  bottles,  boxes, 
siphons,  or  kegs,  a  description  of  the  marks,  names,  or  devices 
wherein  shall  have  been  so  filed  and  published  ■  as  aforesaid, 
without  such  written  consent,  shall  and  is  hereby  declared  to 
be  presumptive  evidence  of  the  said  unlawful  use,  purchase,  or 
traffic  in  of  such  bottles,  boxes,  siphons,  or  kegs. 


TKADE-.MAKKS.  GS5 

Issue  of  search  warrants — Punishment. 

Sec.  4.  Whenever  any  person,  persons,  or  corporations,  men- 
tioned in  section  one  of  this  act,  or  his,  her,  its,  or  their  agent, 
shall  make  oath  before  any  magistrate  that  he,  she,  or  it  has 
reason  to  believe,  and  does  believe,  that  any  of  his,  her,  or  their 
bottles,  boxes,  siphons  or  kegs,  a  description  of  the  names, 
marks,  or  devices  whereon  has  been  so  filed  and  published,  as 
aforesaid,  are  being  unlawfully  used  or  filled,  or  had  by  any 
person  or  corporation  manufacturing  or  selling  soda,  mineral, 
or  aerated  waters,  porter,  ale,  cider,  ginger  ale,  milk,  cream, 
small  beer,  larger  beer,  weiss  beer,  white  beer,  and  other  bever- 
ages, or  that  any  junk  dealer,  or  dealer  in  secondhand  articles, 
vender  of  bottles,  or  any  other  person  or  corporation,  has  any 
such  bottles,  boxes,  siphons,  or  kegs,  in  his,  her,  or  its  possession, 
or  secreted  in  any  place,  the  said  magistrate  must  thereupon 
issue  a  search  warrant  to  discover  and  obtain  the  same,  and  may 
also  cause  to  be  brought  before  him  the  person  in  whose  posses- 
sion such  bottles,  boxes,  siphons,  or  k^gs  may  be  found,  and 
then  inquire  into  the  circumstances  of  such  possessiian  ;  and  if 
said  magistrate  finds  that  such  pei-son  has  been  guilty  of  a  viola- 
tion of  section  two  of  this  act,  he  must  impose  the  punishment 
therein  prescribed,  and  he  shall  also  award  possession  of  the 
property  taken  upon  such  search-warrant  to  the  owner  thereof. 

Deposit  not  to  be  deemed  a  sale. 

Sec.  5.  The  requiring,  taking  or  accepting  of  any  deposit 
for  any  purpose,  upon  any  bottle,  box,  siphon,  or  keg  shall  not 
be  deemed  or  constitute  a  sale  of  such  property,  either  optional 
or  otherwise,  in  any  proceeding  under  this  act.  [New  section; 
added  March  5,  1003.1 

Refiling  of  marks  not  required. 

Sec.  6.  Any  person  or  persons,  corporation  or  corporations, 
that  has  or  have  heretofore  filed  in  the  offices  mentioned  in  sec- 
tion 1  of  this  act,  a  description  of  the  name  or  names,  marks, 
or  devices,  upon  his.  her,  their,  or  its  jiroperty  therein  men- 
tioned, and  has  caused  the  same  to  be  published  accordiug  to  the 
laws  existing  at  the  time  of  surli  filing  and  publication  shall 
not  be  required  to  again  file  and  publish  such  description  to  be 
entitled  to  the  benefits  of  this  act ;  and  any  person  or  persons, 
corporation  or  corporations,  having  comi)lied  with  the  pro- 
visions of  this  act  may  as  a  part  of  the   sale,   assignment  or 


GSG  .STATUTES    AT    LAROE. 

transfer  of  all  his,  her,  their  or  its  said  bottles,  boxes,  siphons, 
or  kegs,  used  as  aforesaid,  with  his,  her,  their  or  its  name  or 
names  or  other  marks  or  devices,  branded,  stamped,  engraved, 
etched,  and  blown,  impressed  or  otherwise  produced  upon  such 
bottles,  boxes,  siphons  and  kegs,  to  any  other  person  or  persons, 
corporation  or  corporations,  engaged  in  manufacturing,  bottling, 
or  selling  soda  waters,  mineral  or  aerated  waters,  porter,  ale, 
beer,  cider,  ginger  ale,  milk,  cream,  small  beer,  lager  beer,  weiss 
beer,  white  beer  or  other  beverages,  sell,  assign,  and  transfer 
the  sole  and  exclusive  right  of  using  said  name  or  names, 
marks  and  devices  in  said  business.  And  in  the  event  of  such 
sale,  transfer  or  assignment  as  aforesaid,  or  in  the  event  of  the 
transfer  by  operation  of  law  or  by  sale  under  order  of  any  court 
of  the  entire  business  of  such  person  or  persons,  corporation  or 
corporations,  or  of  the  entire  stock  of  bottles,  boxes,  siphons  or 
kegs  belonging  to  them,  him,  her  or  it,  to  any  person  or  persons, 
corporation  or  corporations,  engaged  in  manufacturing,  bottling 
or  selling  soda  waters,  mineral  or  aerated  watei's,  porter,  ale, 
beer,  cider,  ginger  ale,  milk,  cream,  small  beer,  lager  beer, 
weiss  beer,  white  beer  or  other  beverages,  such  person  or  per- 
sons, corporation  or  corporations,  shall  not  be  again  required 
to  file  and  publish  a  description  of  said  name  or  names,  marks 
or  devices,  hereunder,  but  shall  be  entitled  to  all  the  benefits 
of  this  act  immediately  upon  acquiring  such  bottles,  boxes, 
siphons  or  kegs. or  such  business  as  aforesaid.  [Formerly  sec- 
tion .'j ;  renumbered  and  amended  March  5,  1903.] 

Repeal  of  conflicting  acts. 

Sec.  7.  All  acts  and  parts  of  acts  inconsistent  herewith  are 
for  the  purpose  of  this  act  hereby  repealed.  [Formerly  sec- 
tion 0;  renumbered  and  reenacted  March  5,  1903.] 

(For  Trade-marks,  etc.,  see,  also,  Pol.  C.  §§  319(5  to  3201 ;  Civ. 
G.  §§   G54,  G55,  991,  1772,  1773;  Pen.  G.  §§  319a  to  354%.) 


TRUST  COMPANIES. 

See  Buiih.s  and  Baitkin<j ;  Eaccutors. 


UNITED    STATES    RIGHTS   OF    WAY.  C87 


UNITED  STATES. 

An  act  granting  rights  of  way  for  lines,  roads,  structures,  levees, 
canals,  and  excavations  to  the  United  States,  over  the  public 
lands  of  this  state. 

Approved  March  21,   1007;  stats.   1907,  p.   848. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Right  of  way  over  public  lands. 

Section  1.  A  right  of  way  is  hereby  granted  over  the  pub- 
lic lands  of  this  state,  and  over  any  public  land  which  may 
hereafter  become  the  property  of  this  state,  to  the  United  States, 
for  all  telegraph,  telephone,  power  or  light  lines,  roads,  rail- 
roads, tramways,  dikes,  levees,  dams,  mounds,  embankments, 
tunnels,  ditches  or  canals,  or  other  works,  structures  or  exca- 
vations requiring  rights  of  way  built,  erected,  excavated  or  con- 
structed under  the  provisions  of  the  act  of  congress,  approved 
.Tune  17,  1902,  relating  to  irrigation  and  reclamation. 

Patents  subject  to  provisions  of  this  act. 

Sec.  2.  All  patents  or  conveyances  of  such  lands  which  may 
hereafter  be  located  or  filed  on  shall  be  issued  subject  to  the 
rights  of  way  herein  provided  for. 


WAGES. 

An    act   to    provide   for   the    payment   of   the   wages   of    mechanics 
and    laborers   employed    by    corporations. 

Approved   March    31,    1891  ;    stats.    1891,    p.    195.       Unconstitu- 
tiunal  (Slocum  vs.  Bear  Valley  Irrigation  Co.,  122  Cal.  555). 


6SS  STATUTES    AT   LAKGE. 

An  act  requiring  every  corporation  doing  business  in  this  state 
to  pay  their  employees,  and  each  of  them,  at  least  once  in 
each  and  every  month,  the  wages  earned  by  such  employee; 
to  limit  the  defenses  which  may  be  set  up  by  such  corpora- 
tion to  assignments  of  wages,  set-off  or  counterclaims,  or  the 
absence  of  such  employee  at  the  time  of  making  payment, 
and  in  case  of  such  absence  the  wages  are  payable  upon 
demand;  to  prohibit  assignments  of  wages  for  the  purpose 
of  evading  the  provisions  of  this  act  and  agreements  to 
accept  wages  at  longer  periods  than  as  herein  provided  as  a 
condition  of  employment;  to  fix  a  penalty  for  this  violation 
of  the  provisions  of  this  act  by  such  corporation,  and  to  pro- 
vide for  the  disposition  of  any  fines  recovered  from  corpora- 
tions violating  the  same. 

Approved    Maich    29,    1S!»7;    stats.    IS'tT.    p.    'I'M.      Unconstitu- 
tional (Johnson  vs.  Goodyear  M.  Co.,  127  Cal.  4). 


WAREHOUSEMEN. 

An  act  concerning  warehouse  receipts,  and  the  issuing,  sale  and 
transfer  thereof,  and  the  sale  of  goods,  wares  and  mer- 
chandise stored  in  public  or  private  warehouses  in  other 
states. 

Approved  March  20,   1905  ;   stats.   1905,  p.   322. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Sale  or  transfer  of  warehouse  receipts. 

Section  1.  That  it  shall  be  unlawful  for  any  corporation, 
firm  or  person,  their  agents  or  employees,  to  issue,  sell,  pledge, 
assign  or  transfer  in  this  state,  any  receipt,  certificate  or  other 
written  instrument  purporting  to  be  a  wareliouse  receipt,  or  in 
the  similitude  of  a  warehouse  receipt,  or  designed  to  be  under- 
stood as  a  warehouse  receipt,  for  goods,  wares  or  merchandise 
stored  or  deposited,  or  claimed  to  be  stored  or  deposited,  in  any 
warehouse,  public  or  private,  in  any  other  state,  unless  such 
receipt,  certificate  or  other  written  instrument,  shall  have  been 
issued  b.\'  tlie  warehouseman  operating  sufli  wni-eliouse. 

Fraudulent   receipts. 

Sec.  2.  It  shall  be  unlawful  for  any  corporation,  firm  or 
l»ersou,   their  agents  or  employees,  to   issue,  sell,  pledge,  assign 


WAREHOUSEMEN.  689 

or  trausfer  in  this  state,  auy  receipt,  certificate  or  otlier  writton 
instrument  for  goods,  wares  or  merchandise  claimed  to  be  stored 
01',  deposited,  in  any  warehouse,  public  or  itrivate,  in  any  other 
state,  knowing  that  tliere  is  no  such  wareliouse  located  at  the 
place  named  in  such  receipt,  certificate  or  other  written  instru- 
ment, or  if  there  be  a  warehouse  at  such  place,  knowing  that 
there  are  no  goods,  wares  or  merchandise  stored  or  deposited 
therein  as  specified  in  such  report,  certificate  or  other  written 
instrument. 

Number  and  location  of  warehouse  must  be  set  forth. 

Sec.  3.  It  shall  be  unlawful  for  any  corporation,  firm  or 
person,  their  agents  or  employees,  to  issue,  sign,  sell,  pledge, 
assign  or  transfer,  in  this  state,  any  receipt,  certificate  or  other 
written  instrument  evidencing,  or  purporting  to  evidence,  the 
sale,  pledge,  mortgage  or  bailment  of  any  goods,  wares  or  mer- 
chandise stored  or  deposited,  or  claimed  to  be  stored  or  deposited, 
in  any  warehouse,  public  or  private,  in  any  other  state,  unless 
such  receipt,  certificate  or  other  written  instrument  shall  plainly 
designate  the  number  and  location  of  such  warehouse,  and  shall 
also  set  forth  therein  a  full,  true  and  complete  copy  of  the 
receipt  issued  by  the  warehouseman  operating  such  warehouse 
wherein  such  goods,  wares  or  merchandise  are  stored  or  de- 
posited, or  are  claimed  to  be  stored  or  deposited ;  jjrovidcd,  that 
the  provisions  of  this  section  shall  not  apply  to  the  issue,  sign- 
ing, sale,  pledge,  assignment  or  transfer  of  bona  fide  warehouse 
receipts  issued  by  the  warehouseman  operating  public  or  bonded 
warehouses  in  other  states,  according  to  the  laws  of  the  state 
wherein  such  warehouses  may  be  located. 

Penalty  for  violation. 

Sec.  4.  Every  corporation,  firm  or  person,  agent  or  employee, 
who  shall  knowingly  violate  any  of  the  provisions  of  this  act, 
shall  be  deemed  guilty  of  a  misdemeanor,  and  upon  conviction 
thereof,  shall  be  fined  in  any  sum  not  less  than  fifty  nor  more 
than  one  thousand  dollars,  to  which  may  be  added  imprisonment 
in  the  county  jail  for  any  period  not  exceeding  six  months. 

(See,  also.  Civ.  C.  §§  1858  to  1858/,  as  adopted  in  1905,  and 
"Warehouse  Receipts  Act,"  approved  March  19,  1909.) 


690  STATUTES    AT    LARGE. 

An  act  to  make   uniform   the   law  of  warehouse   receipts. 

Approved  March  1!),  1009:  stats.   1909,  p.  437. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  follows: 

Warehouseman   may  issue  receipts. 

Section  1.  Warehouse  receipts  may  be  issued  by  any  ware- 
houseman. 

What  receipt  must  embody — Liability  for  omission. 

Sec.  2.  Warehouse  receipts  need  not  be  in  any  particular 
form,  but  every  such  receipt  must  embody  within  its  written  or 
printed  terms — 

(a)  The  location  of  the  warehouse  where  the  goods  are 
stored ; 

(6)   The  date  of  issue  of  the  receipt; 
(c)   The  consecutive  number  of  the  receipt; 
{d)   A   statement  whether   the   goods   received   will   be   deliv- 
ered to  the  bearer,  to  a  specified  person,  or  to  a  specified  person 
or  his  order  ; 

(c)   The  rate  of  storage  charges; 

if)  A  description  of  the  goods  or  of  the  packages  containing 
them  ; 

(g)  The  signature  of  the  warehouseman,  which  may  be  made 
Ijy  his  authorized  agent ; 

(h)  If  the  receipt  is  issued  for  goods  of  which  the  warehouse- 
man is  owner,  either  solely  or  jointly  or  in  common  with  others, 
the  fact  of  such  ownership ;  and 

(i)  A  statement  of  the  amount  of  advances  made  and  of  lia- 
bilities incurred  for  which  the  warehouseman  claims  a  lien.  If 
the  precise  amount  of  such  advances  made  or  of  such  liabilities 
incurred  is,  at  the  time  of  the  issue  of  the  receipt,  unknown  to 
the  warehouseman  or  to  his  agent  who  issues  it,  a  statement  of 
the  fact  that  advances  have  been  made  or  liabilities  incurred  and 
the  purpose  thereof  is  sufficient. 

A  warehouseman  shall  be  liable  to  any  person  injured  thereby, 
for  all  damage  caused  by  the  omission  from  a  negotiable  receipt 
of  any  of  the  terms  herein  required. 

Insertion  of  other  conditions. 

Sec.  3.  A  warehouseman  may  insert  in  a  receipt,  issued  by 
him,  any  other  terms  and  conditions,  provided  that  such  terms 
and  conditions  shall  not — 


WAREHOUSEMEN.  091 

((/)   Be  contrary  to  the  provisions  of  tliis  act 
(b)   In  anywise  impair  his  obligation  to  exercise  that  desrce 
of  care  in  the  safe-keeping  of  the  goods  intrusted  to  him  which 
a   reasonably  careful   man   would   exercise   in   regard   to  similar 
goods  of  his  own. 

Non-negotiable  receipt. 

Sec.  4.  A  receipt  in  which  it  is  stated  that  the  goods 
received  will  be  delivered  to  the  depositor,  or  to  any  other 
specified  person,  is  a  non-negotiable  receipt. 

Negotiable  receipt. 

Sec.  5.  A  receipt  in  which  it  is  stated  that  the  goods 
received  will  be  delivered  to  the  bearer,  or  to  the  order  of  any 
person  named  in  such  receipt  is  a  negotiable  receipt.  No  pro- 
vision shall  be  inserted  in  a  negotiable  receipt  that  is  non-negoti- 
able.    Suc^  provision,  if  inserted,  shall  be  void. 

Duplicates  shall  be  so  marked. 

Sec.  6.  When  more  than  one  negotiable  receipt  is  issued  for 
the  same  goods,  the  word  "duplicate"  shall  be  plainly  placed 
upon  the  face  of  every  such  receipt,  except  the  one  first  issued. 
A  warehouseman  shall  be  liable  for  all  damage  caused  by  his 
failure  so  to  do  to  any  one  who  purchased  the  subsequent 
receipt  for  value  supposing  it  to  be  an  original,  even  though  the 
purchase  be  after  the  delivery  of  the  goods  by  the  warehouse- 
man to  the  holder  of  the  original  receipt. 

Non-negotiable  shall   be  marked. 

Sec.  7.  A  non-negotiable  receipt  shall  have  plainly  placed 
upon  its  face  by  the  warehouseman  issuing  it,  "non-negotiable," 
or  "not  negotiable."  In  case  of  the  warehouseman's  failure 
so  to  do,  a  holder  of  the  receipt  who  purchased  it  for  value  sup- 
posing it  to  be  negotiable,  may,  at  his  option,  treat  such  receipt 
as  imposing  upon  the  Avarehouseman  the  same  liabilities  he 
would  have  incurred  had  the  receipt  been  negotiable. 

This  section  shall  not  apply,  however,  to  letters,  memoranda, 
or  written  acknowledgments  of  an  informal  character. 

Right  of  holder  of  receipt. 

Sec.  8.  A  warehouseman,  in  the  absence  of  some  lawful 
excuse  provided  by  this  act,  is  bound  to  deliver  the  goods  upon 


692  STATUTES    AT    LARGE. 

a  (lomaiid  luado  oithor  by  the  holder  of  a  receii)t  for  the  gO(Kls 
or  by  the  depositor,  if  such  demand  is  accompanied  with — 

(«)    An  offer  to  satisfy  the  warehouseman's  lien; 

(h)  An  offer  to  surrender  the  receipt  if  negotiable,  with  such 
endorsements  as  would  be  necessary  for  the  negotiation  of  the 
receipt ;  and 

(c)  A  readiness  and  willingness  to  sign,  when  the  goods  are 
delivered,  an  acknowledgment  that  they  have  been  delivered,  if 
such  signature  is  requested  by  the  warehouseman. 

In  case  the  warehouseman  refuses  or  fails  to  deliver  the  goods 
in  compliance  with  a  demand  by  the  holder  or  depositor  so 
accompanied,  the  burden  shall  be  upon  the  warehouseman  to 
establish  the  existence  of  a  lawful  excuse  for  such  refusal. 

When  warehouseman  justified  in  delivering  goods. 

Sec.  9.  A  warehouseman  is  justified  in  deli\eriug  the  goods, 
subject  to  the  provisions  of  the  three  following  sec#ous,  to  one 
who  is — - 

(a)  The  fierson  lawfully  entitled  lo  the  possession  of  the 
goods,  or  his  agent : 

(6)  A  person  who  is  either  himself  entitled  to  delivery  by 
the  terms  of  a  non-negotiable  receipt  issued  for  the  goods,  or 
who  has  written  authority  from  the  person  so  entitled  either 
indorsed  upon  the  receipt  or  written  ui)on  another  paper :  or 

(c)  A  person  in  possession  of  a  negotiable  receipt  by  the 
terms  of  which  the  goods  are  deliverable  to  him  or  order  or  to 
bearer,  or  which  has  been  indorsed  to  him  or  in  blank  by  the 
person  to  whom  delivery  was  promised  by  the  terms  of  the 
receipt  or  by  his  mediate  or  immediate  indorsee. 

When  warehouseman  liable. 

Sec.  10.  Where  a  warehouseman  delivers  the  goods  to  one 
who  is  not  in  fact  lawfully  entitled  to  the  possession  of  them, 
the  warehouseman  shall  be  liable  as  for  conversion  to  all  having 
a  right  of  property  or  possession  in  the  goods  if  he  delivered 
the  goods  otherwise  than  as  authorized  by  subdivisions  (h)  and 
(c)  of  the  preceding  section  and  though  he  delivered  the  goods 
as  authorized  by  said  subdivisions  he  shall  be  so  liable,  if  prior 
to  such  delivery  he  had  either 

(a)  Been  requested,  by  or  on  behalf  of  the  person  lawfully 
entitled  to  a  right  of  proi)eity  or  possession  in  the  goods,  not  to 
make  such  deliv<M-y;  or, 


WAREHOUSEMEN.  693 

(h)  Had  information  that  the  delivery  about  to  be  made  was 
to  one  not  lawfully  entitled  to  the  possession  of  the  goods. 

Same. 

Sec.  11.  Except  as  provided  in  section  36,  where  warehouse- 
man delivers  goods  for  which  he  had  issued  a  negotiable  receipt, 
the  negotiation  of  which  would  transfer  the  right  to  the  posses- 
sion of  the  goods,  and  fails  to  take  up  and  cancel  the  receipt,  he 
shall  be  liable  to  any  one  who  purchases  for  value  in  good  faith 
such  receipt,  for  failure  to  deliver  the  goods  to  him,  whether 
such  purcha.ser  acquired  title  to  the  receipt  before  or  after  the 
delivery  of  the  goods  by  the  warehouseman. 

Same. 

Sec.  12.  Except  as  provided  in  section  36,  where  a  ware- 
houseman deli^•ers  part  of  the  goods  for  which  he  had  issued  a 
negotiable  receipt  and  fails  either  to  take  up  and  cancel  such 
receipt,  or  to  place  plainly  upon  it  a  statement  of  what  goods 
or  packages  have  been  delivered  he  shall  be  liable,  to  any  one 
who  purchases  for  value  in  good  faith  such  receipt,  for  failure 
to  deliver  all  the  goods  specified  in  the  receipt,  whether  such 
purchaser  acquired  title  to  the  receipt  before  or  after  the  deliv- 
ery of  any  portion  of  the  goods  by  the  warehouseman. 

Alteration  of  receipt,  no  excuse  from  liability — Fraudulent 
alteration. 

Sec.  13.  The  alteration  of  a  receipt  shall  not  excuse  the 
warehouseman  who  i.=sued  it  from  any  liability  if  such  altera- 
tion was 

(fl)    Immaterial  ; 

(6)    Authorized:  or. 

(c)    Made  without  fraudulent  intent. 

If  the  alteration  was  authorized,  the  warehouseman  shall  be 
liable  according  to  the  terms  of  the  receipt  as  altered.  If  the 
alteration  was  unauthorized,  but  made  without  fraudulent  in- 
tent, the  warehouseman  shall  be  liable  according  to  the  terms 
of  the  receipt,  as  they  were  before  alteration. 

Material  and  fraudulent  alteration  of  a  receipt  shall  not 
excuse  the  warehouseman  who  issued  it  from  liability  to  deliver, 
according  to  the  terms  of  the  receipt  as  originally  issued,  the 
goods  for  which  it  was  issued,  but  shall  excuse  him  from  any 
other  liabilily  to  the  person  who  made  the  alteration  and  to  any 
person  who  took  with  notice  of  the  alteration.     Any  purchaser 


G94  STATUTES    AT   LAKUE. 

of  the  receipt  for  value  without  notice  of  the  alteration  shall 
acquire  the  same  rights  against  the  warehouseman  which  such 
purchaser  would  have  acquired  if  the  receipt  had  not  been 
altered  at  the  time  of  the  purchase. 

Delivery  when  receipt  is  lost,  how. 

Sec.  14.  Where  a  negotiable  receipt  has  been  lost  or  de- 
stroyed, a  court  of  competent  jurisdiction  may  order  the  delivery 
of  the  goods  upon  satisfactory  proof  of  such  loss  or  destruction 
and  upon  the  giving  of  a  bond  with  sufficient  sureties  to  be 
approved  by  the  court  to  protect  the  warehouseman  from  any 
liability  or  expense,  which  he  or  any  person  injured  by  such 
delivery  may  incur  by  reason  of  the  original  receipt  remaining 
outstanding.  The  court  may  also  in  its  discretion  order  the 
payment  of  the  warehouseman's  reasonable  costs  and  counsel 
fees. 

The  delivery  of  the  goods  under  an  order  of  the  court  as  pro- 
vided in  this  section,  shall  not  relieve  the  warehouseman  from 
liabilities  to  a  person  to  whom  the  negotiable  receipt  has  been 
or  shall  be  negotiated  for  value  without  notice  of  the  proceed- 
ing.s  or  of  the  delivery  of  the  goods. 

Word  "duplicate"  is  warranty. 

Sec.  l.j.  A  receipt  upon  the  face  of  which  the  word  "dupli- 
cate" is  plainly  placed  is  a  representation  and  warranty  by  the 
warehouseman  that  such  receipt  is  an  accurate  copy  of  an 
original  receipt  properly  issued  and  uncanceled  at  the  date  of 
the  issue  of  the  duplicate,  but  shall  impose  upon  him  no  other 
liability. 

Title  of  warehouseman. 

Sec.  1G.  No  title  or  right  to  the  possession  of  the  goods,  on 
the  part  of  the  warehouseman,  unless  such  title  or  right  is 
derived  directly  or  indirectly  from  a  transfer  made  by  the 
dei)ositor  at  the  time  of  or  subsequent  to  the  deposit  for  storage, 
or  from  the  Avarehouseman's  lien,  shall  excuse  the  warehouse- 
man from  liability  for  refusing  to  deliver  the  goods  according 
to  the  terms  of  the  receipt. 

Claimants  may  interplead. 

Sec.  17.  If  more  than  one  itcrson  claim  the  title  or  posses- 
sion of  the  goods,  the  warehouseman  may,  either  as  a  defense  to 
an  action  brought  against  him  for  non-delivery  of  the  goods,  or 


WAUEUOL'SEMEN.  G95 

iis  au  original  suit,  whichever  is  appropriate,  require  all  known 
claimants  to  interplead. 

Refusal  to  deliver,  excuse  from   liability. 

Sec.  is.  If  some  one  other  than  the  depositor  or  person 
claiming  under  him  has  a  claim  to  the  title  or  possession  of  the 
goods,  and  the  warehouseman  has  information  of  such  claim, 
the  warehouseman  shall  be  excu.sed  from  liability  for  refusing 
to  deliver  the  goods,  either  to  the  depositor  or  person  claiming 
under  him  or  to  the  adverse  claimant,  until  the  warehouseman 
has  had  a  reasonable  time  to  ascertain  the  validity  of  the 
adverse  claim  or  to  bring  legal  proceedings  to  compel  all  claim- 
ants to  interplead.  If  such  adverse  claimant  shall  not  bring 
suit  and  serve  summons  on  the  warehouseman  within  forty- 
eight  hours  after  the  service  of  notice  of  his  adverse  claim,  such 
failure  shall  act  as  a  complete  abandonment  of  such  adverse 
claim. 

Rights  of  third  persons. 

Sec.  19.  Except  as  provided  in  the  two  ])recoding  sections 
and  in  sections  9  and  30,  no  right  or  title  of  a  third  person 
shall  be  a  defence  to  an  action  brought  by  the  depositor  or 
person  claiming  under  him  against  the  warehouseman  for  fail- 
ure to  deliver  the  goods  according  to  the  terms  of  the  receipt. 

Goods  must  correspond  with  description. 

Sec.  20.  A  warehouseman  shall  be  liable  tu  the  holder  of  a 
receipt  for  damages  caused  by  the  non-existence  of  the  goods  or 
by  the  failure  of  the  goods  to  correspond  with  the  description 
thereof  in  the  receipt  at  the  time  of  its  issue.  If,  however,  the 
goods  are  described  in  a  receipt  merely  by  a  statement  of  marks 
or  labels  upon  them,  or  upon  packages  containing  them,  or  by 
a  statement  that  the  goods  are  said  to  be  goods  of  a  certain 
kind,  or  that  packages  containing  the  goods  are  said  to  con- 
tain goods  of  a  certain  kind,  or  by  words  of  like  purport,  such 
statements,  if  true,  shall  not  make  liable  the  warehouseman 
issuing  the  receipt,  although  the  goods  are  not  of  the  kind 
which  the  marks  or  labels  upon  them  indicate,  or  of  the  kind 
they  were  said  lo  be  by  flic  depositor. 

Injury  to  goods. 

Sec.  21.  A  warehouseman  shall  be  liable  for  any  loss  or 
injury  to  the  goods  caused  by  his  failure  to  exercise  such  care 


(JOG  STATUTES    AT   LARGE. 

iu  regard  to  them  as  a  reasonable  careful  owner  of  similar 
soods  would  exercise,  but  he  shall  not  be  liable,  in  the  absence 
of  an  agreement  to  the  contrary,  for  any  loss  or  injury  to  the 
goods  which  could  not  have  been  avoided  by  the  exercise  of 
such  care. 

Goods  must  be  kept  separate. 

Sec.  22.  Except  as  provided  in  the  following  section,  a 
warehouseman  shall  keep  the  goods  so  far  separate  from  goods 
of  other  depositors,  and  from  other  goods  of  the  sSme  depositor 
for  which  a  separate  receipt  has  been  issued,  as  to  permit  at  all 
times  the  identification  and  redelivery  of  the  goods  deposited. 

Certain  may  be  mingled. 

Sec.  23..  If  authorized  by  agreement  or  by  custom,  a  ware- 
houseman may  mingle  fungible  goods  with  other  goods  of  the 
same  kind  and  grade.  In  such  case  the  various  depositors  of 
the  mingled  goods  shall  own  the  entire  mass  in  common,  and 
each  depositor  shall  be  entitled  to  such  portion  thereof  as  the 
amount  deposited  by  him  bears  to  the  whole. 

Care  of  mingled  goods. 

Sec.  24.  The  warehouseman  shall  be  severally  liable  to  each 
depositor  for  the  care  and  redelivery  of  his  share  of  such  mass 
to  the  same  extent  and  under  the  same  circumstances  as  if 
the  goods  had  been  kept  separate. 

Attachments,  surrender  of  receipt. 

Sec.  25.  If  goods  are  delivered  to  a  warehouseman  by  the 
owner  or  by  a  person  wdiose  act  in  conveying  the  title  to  them 
to  a  purchaser  in  good  faith  for  value  would  bind  the  owner, 
and  a  negotiable  receipt  is  issued  for  them,  they  can  not  there- 
after, while  in  the  possession  of  the  warehouseman,  be  attached 
by  garnishment  or  otherwise,  or  be  levied  upon  under  an  exe- 
cution, unless  the  receipt  be  first  surrendered  to  the  ware- 
houseman, or  its  negotiation  enjoined.  The  warehouseman  shall 
in  no  case  be  compelled  to  deliver  up  the  actual  possession  of 
the  goods  until  the  receipt  is  surrendered  to  him  or  impounded 
by  the  court. 

Creditors'  right  to  injunction. 

Skc.  2(i.  A  (Mt'ditur  whose  deblur  is  the  owner  of  a  negoti- 
able receipt  shall  Ije  entitled  to  such  aid  from  courts  of  appro- 
priate   jurisdiction,    by    injunction    or    otherwise,    in    attaching 


WAREHOUSEMEN.  697 

such  receipt  or  iu  satisfying  the  chiini  by  meaus  thereof  as  is 
allowed  at  law  or  in  equity,  in  regard  to  property  which  can 
not  readily  In'  altnohed  or  levied  upon  Ity  ordinary  le^al  ijrowss. 

Lien  for  lawful  charges. 

Sec.  27.  .  Subject  to  the  provisions  of  section  30,  a  ware- 
houseman shall  "have  a  lien  on  goods  deposited  or  on  the  pro- 
ceeds thereof  in  his  hands,  for  all  lawful  charges  for  storage 
and  preservation  of  the  goods ;  also  for  all  lawful  claims  for 
money  advanced,  interest,  insurance,  transportation,  labor, 
weighing,  coopering  and  other  charges  and  expenses  in  relation 
to  such  goods ;  also  for  all  reasonable  charges  and  expenses 
for  notice,  and  advertisements  of  sale,  and  for  sale  of  the  goods 
where  defnult  has  been  made  in  satisfying  the  warehouseman's 

lirli. 

Lien  may  be  enforced,  against  what. 

Sec.  28.  Subject  (<>  (he  provisions  t>\'  section  o(),  a  ware- 
houseman's lien  may  be  enforced — 

(a)  Against  all  goods,  whenever  di^iosited,  l)elonging  to  the 
person  who  is  liable  as  debtor  for  the  claims  in  regard  to  which 
the  lien  is  asserted  ;  and 

(6)  Against  all  goods  belonging  to  others  which  have  been 
deposited  at  any  time  by  the  person  who  is  liable  as  debtor  for 
the  claims  in  regard  to  which  the  lien  is  asserted,  if  such  per- 
son had  been  so  entrusted  with  the  possession  of  the  goods  that 
a  pledge  of  the  same  V)y  him  at  the  time  of  the  deposit  to  one 
who  took  the  goods  in  good  faith  for  value  would  have  been 
valid. 

Loss  of  lien,  when. 

Sec.  29.     A  warehouseman  loses  his  lien  upon  goods — 

(«)    By  surrendering  possession  thereof;  or 

(h)  By  refusing  to  deliver  the  goods  when  a  demand  is  made 
with  which  he  is  bound  to  comply  under  the  provisions  of  this 
act. 

Charges  for  storage,  lien  of. 

Sec.  30.  If  a  negotiable  receipt  is  issued  for  goods,  the 
warehouseman  shall  have  no  lien  thereon,  except  for  charges 
for  storage  of  those  goods  subsequent  to  the  date  of  the  receipt, 
unless  the  receipt  expressly  enumerates  other  charges  for  which 
a  lien  is  claimed.      In  such  case  there  shall  be  a   lien   for  the 

30— CL 


()J)8  STATUTES   AT  LARfiK. 

charges  cuuiiieratiMl  so  fai-  as  they  are  withiu  the  terms  of  sec- 
tion 27.  although  the  amount  of  the  charges  so  enumerated 
is  not  stated  in  tl)<»  receipt. 

Goods  may  be  held. 

Sec.  31.  A  warehouseman  having  a  lien  valid  against  the 
person  demanding  the  goods  may  refuse  to  deliv<'r  the  goods  to 
him  until  the  lien  is  satisfied. 

Warehouseman  entitled  to  remedy. 

Sec.  32.  Whether  a  warehouseman  has  or  has  not  a  lien 
upon  the  goods,  he  is  entitled  to  all  remedies  allowed  by  law  to  a 
creditor  against  his  debtor,  for  the  collection  from  the  depositor 
iif  all  chai'ges  and  advances  which  the  dei)osit()r  has  expressly 
or  impliedly  coiilracled  with  the  warehouseman  to  pay. 

How  lien  may  be  satisfied — Sale  of  goods  at  auction. 

Sec.  .">:'..  A  warehouseman's  lien  for  a  cl.uia  whicii  has 
become  due  may  be  satisfied  as  follows: 

The  warehouseman  shall  give  a  written  notice  to  the  person 
on  whose  account  the  goods  are  hidd.  and  to  any  other  person 
known  by  the  warehouseman  to  claim  an  interest  in  the  goods. 
Sucli  notice  shall  be  gi\-en  l)y  tUdivery  in  person  or  by  regis- 
tered letter  addressed  to  the  last  known  place  of  business  or 
al)ode  of  the  person   to  lie  notified.     The  notice  shall  contain — 

(d)  An  itemiz(Ml  statement  of  the  warehouseman's  claim, 
showing  the  sum  due  at  the  time  of  the  notice  and  the  date  or 
dates  when  it  became  du(> : 

(?>)  A  brief  descrijition  of  the  goods  against  which  the  lien 
exists : 

(c)  A  demand  that  the  amount  of  tin'  claim  as  stated  in 
the  notice,  and  of  such  further  claim  as  shall  accrue  shall  bo 
paid  on  or  before  the  day  mentioned,  not  less  than  ten  days 
from  the  delivery  of  the  notice  if  it  is  ])ersonally  delivered, 
or  from  tin'  lime  when  the  notice  should  reach  its  destination, 
according  to  the  dwi'  cours.'  of  post,  if  the  notice  is  sent  by 
mail  ;  anil 

{(I)  \  statement  that  unless  the  claim  is  i>aid  within  the 
time  specilied  the  goods  will  lie  advertised  for  sale  and  sold  by 
auction  at  a  specified  lime  and  place. 

In  accordance  with  the  terms  of  a  uotici'  so  given,  a  sale 
of  the  goods  liy  an.  lion  may  be  had  to  satisfy  any  valid  claim 
of    I  hi'    w.-\relionsiMiian    foi-    which    he    has    .-i    lien    on    the    goods. 


WAR?:ii()isEArE\.  OOn 

The  salo  shall  i)e  had  iu  the  place  where  the  lieu  was  acyuired, 
or,  if  such  place  is  manifestly  nusnitable  for  the  purpose,  at 
the  nearest  suitable  place.  After  the  time  for  the  payment 
of  the  claim  specified  in  the  notice  to  the  depositor  has  elapsed, 
an  advertisement  of  the  sale,  describing  the  goods  to  be  sold, 
and  stating  the  name  of  the  owner  or  [)erson  on  whose  account 
the  goods  are  held,  and  the  time  and  place  of  the  sale,  shall 
be  published  once  a  week  for  two  consecutive  weeks  in  a 
newspaper  publisht'd  in  the  idace  wln-re  such  sale  is  to  be  held. 
The  sale  shall  not  be  held  U'ss  than  fifteen  days  from  the  time 
of  the  first  publication.  If  tlicrc  is  no  newspaper  published  in 
such  place,  the  advertisement  shall  lie  posted  at  least  fen  days 
before  such  sale  in  not  less  than  six  consiiicnous  places  llicrcin. 

From  the  i^roceeds  of  such  sale  tln'  warehouseman  shall 
satisfy  his  lien,  including  the  reasonable  eharges  of  notice,  ;\(l\ei-- 
tisenient,  and  sale.  The  balance,  if  any,  of  such  proceeds 
shall  be  held  by  the  warehouseman,  and  deli\'ere(l  on  demand 
to  the  person  to  whom  he  would  have  l)een  bound  to  deliver 
or  .iustified  in  delivering  the  goods. 

At  any  time  before  the  goods  are  sold  any  jierson  claiming 
a  right  of  property  or  possession  therein  may  pay  the  ware- 
houseman the  amount  necessary  to  satisfx  his  lien  and  pay  the 
reasonable  expenses  and  liabilities  incurred  in  serving  notices 
and  ad\('rtising  and  iireparing  for  the  sale  up  to  the  time  of 
such  ))ayinenl.  The  warehouseman  shall  (hdiver  the  goods  lo 
the  person  making  such  payment  if  he  is  a  person  entitled, 
under  the  provisions  of  this  act,  to  the  possession  of  the  goods 
on  payment  of  charges  thereon.  Otherwise  the  warehouseman 
shall  retain  jjossession  of  the  goods  according  to  the  terms  of 
the  original   contract  of  deposit. 

Perishable  goods. 

Si'X".  .'>4.  If  goods  are  of  ;i  jierislialile  n.-itnre.  or  by  keeping 
will  (k'teriorate  greatly  in  value,  oi-  li,\  their  odor,  leakage, 
inflammability,  or  ex]ilosive  nature,  will  be  liable  to  injure  other 
proi)erty,  tiie  warehouseman  may  gi\e  snch  notice  to  the  ownei', 
or  to  the  person  in  whose  name  the  goods  are  stored,  as  is  rea- 
sonable and  possible  under  the  circumstances,  to  satisfy  the  lien 
upon  such  goods,  and  to  remo\-e  them  from  the  W'arehouse,  and 
in  the  event  of  the  failur<'  of  such  person  to  satisfy  the  lien  aiul 
to  remove  the  goods  within  the  lime  so  specified,  tin'  ware- 
houseman  may   sell    the   goods  at    public  or   pi-i\;ite  sale   without 


700  STATUTES  AT  LAKGE. 

advertising.  If  the  warehouseman  after  a  reasonable  effort  is 
unable  to  sell  such  goods,  he  may  dispose  of  them  in  any  lawful 
manner,  and  shall  incur  no  liability  by  reason  thereof.  The 
proceeds  of  any  sale  made  under  the  terms  of  this  section  shall 
be  disposed  of  in  the  same  way  as  the  proceeds  of  sales  made 
under  the  terms  of  the  preceding  section. 

Other  remedies. 

Sec.  35.  The  remedy  for  enforcing  a  lien  herein  provided 
does  not  preclude  any  other  remedies  allowed  by  law  for  the 
enforcement  of  a  lien  against  personal  property  nor  bar  the 
right  to  recover  so  much  of  the  warehouseman's  claim  as  shall 
not  be  paid  by  the  proceeds  of  the  sale  of  the  property. 

Warehouseman's  liability  ceases,  when. 

Skc.  .><;.  Afler  goods  have  been  lawfully  sold  to  satisfy  a 
warehouseman's  lien,  or  have  i)een  lawfully  sold  or  disposed 
of  V>ecause  of  their  perishable  or  hasiardous  nature,  the  ware- 
houseman shall  not  thereafter  be  liable  for  failure  to  deliver 
the  goods  to  the  depositor,  or  owner  of  the  goods,  or  to  a  holder 
of  the  receipt  given  for  the  goods  when  they  were  deposited, 
even  if  such  receipt  be  negotiable. 

How  negotiable  receipt  may  be  negotiated. 

Sec.  37.     A  negotiable  receipt  may  be  negotiated  by  delivery — - 

(a)  Where,  by  the  terms  of  the  receipt,  the  warehouseman 
undertakes  to  deliver  the  goods  to  the  bearer,  or 

(h)  Where,  by  the  terms  of  the  receipt,  the  warehouseman 
undertakes  to  deliver  the  goods  to  the  order  of  a  specified  per- 
son, and  such  person  or  a  subsequent  indorsee  of  the  receipt 
has  indorsed  it  in  blank  or  to  bearer. 

Where,  by  the  terms  of  a  negotiable  receipt,  the  goods  are 
deliverable  to  bearer  or  where  a  negotiable  receipt  has  been 
indorsed  in  blank  or  to  bearer,  any  holder  may  Indorse  the 
same  to  himself  or  to  any  other  specified  person,  and  in  such 
case  the  receipt  shall  thereafter  be  negotiated  only  by  the 
indorsement  of  such  indorsee. 

Same. 

Sec.  38.  A  negotiable  receipt  may  be  negotiated  by  the 
indorsement  of  the  pei-son  to  whose  order  the  goods  are,  by  the 
terms  of  the  receipt,  deliverable.  Such  indorsement  may  be  in 
blank,    to   bearer   or   to   a   specified   person.      If   indorsed   to   a 


WAKEHOrsKJIKX.  70  [ 

specified  person,  it  may  be  again  negotiated  by  llu-  indorsement 
of  such  person  in  blank,  to  bearer  or  to  another  specified  per- 
son.    Subsequent  negotiation  may  be  made  in  like  manner. 

Same. 

Sec.  30.  A  receipt  which  is  not  in  such  form  that  it  can  be 
negotiated  by  delivery  may  be  transferred  by  the  holder  by 
delivery  to  a  purchaser  or  donee. 

A  non-uegotiablo  receipt  can  not  be  negotiated,  and  the;  in- 
dorsement of  such  a  receipt  gives  the  transferee  no  additional 
right. 

By  whom   may  be  negotiated. 

Sec.  40.     A  uegoliablc  receipt  may  be  negoliated — 

(a)    By  the  owner  thereof;  or 

(6)  By  any  person  to  whom  the  possession  or  custody  of  the 
receipt  has  been  entrusted  l)y  the  owner,  if,  by  the  terms  of 
the  receipt,  the  warehouseman  undertakes  to  deliver  the  goods^ 
lo  the  order  of  the  person  to  whom  the  possession  or  custody 
iif  the  receipt  has  been  entrusted,  or  if  at  the  time  of  sncli 
entrusting  the  receipt  is  in  such  form  that  it  may  be  negoliaU'd 
by  delivery. 

What  is  acquired  by  negotiation. 

Sec.  41.  A  person  to  whom  a  negotiable  receipt  has  i)eeu 
duly  negotiated  acquires  thereby — 

(a)  Such  title  to  the  goods  as  the  person  negotiating  the 
receipt  to  him  had  or  had  ability  to  convey  to  a  purchaser  in 
good  faith  for  value,  and  also  such  title  to  the  goods  as  the 
depositor  or  person  to  whose  order  the  goods  were  to  be  deliv- 
ered by  the  terms  of  the  receipt  had  or  had  ability  to  convey 
to  a  purchaser  in  good  faith  for  value,  and 

(6)  The  direct  obligation  of  the  warehouseman  to  hold  pos- 
session of  the  goods  for  him  according  to  the  terms  of  the 
receipt  as  fully  as  if  th(>  warehouseman  had  contracted  <lirectly 
with  him. 

What  is  acquired   by  transfer  of  receipt. 

Sec.  42.  A  person  to  whom  a  receipt  has  been  transferred 
but  not  negotiated,  ac(iuires  thereby,  as  againsi  I  he  transferor, 
Ihe  title  lo  the  goods,  subject  to  the  lernis  of  .my  agreement 
widi   tlie    Iransfenir. 

If   the  receipt    is  mni-negoliabie  siicli   iierson   also  ac(iuires   (he 


702  STATUTES    AT  LARtiE. 

ri;;lit  to  uuLil'y  the  waruhousemau  of  the  transfer  to  him  of  sucli 
receipt,  and  thereby  to  aciiuii'e  the  direct  obligation  of  the  ware- 
houseman to  hold  possession  of  the  goods  for  him  according  to 
the  terms  of  the  receipt. 

Prior  to  the  notification  of  the  warehouseman  by  the  trans- 
feror or  transferee  of  a  non-negotiable  receipt,  the  title  of  the 
transferee  to  the  goods  and  the  right  to  acquire  the  o))ligation 
of  the  warehouseman  may  be  defeated  by  the  levy  of  an  attach- 
ment or  execution  upon  the  goods  by  a  creditor  of  the  transfcroi-, 
or  by  a  notification  to  the  warehouseman  by  the  transfei-or  or  a 
subsequent  purchaser  from  the  transferor  of  a  subsequent  sale 
of  the  goods  by  the  transferor. 

Transferee  acquires,  what. 

Sec.  43.  Where  a  negotiable  receipt  is  transferred  for  value 
by  delivery,  and  the  indorsement  of  the  transferor  is  essential 
for  negotiation,  the  transferee  acquires  a  right  against  the 
transferor  to  compel  him  to  indorse  the  receipt,  unless  a  con- 
trary intention  appears.  The  negotiation  shall  take  effect  as  of 
IIh^  time  when  the  indorsement  is  actually  made 

Transferor  warrants,  what. 

8ec.  44.  A  person  who  fur  \abie  negotiates  or  transfers  a 
receipt  by  indorsement  or  delivery,  including  one  who  assigns 
for  \alue  a  claim  secured  by  a  receipt,  unless  a  contrary  inten- 
tion appears,  warrants — 

(a)   That  the  receipt  is  genuine: 

(h)   That  he  has  a  legal  right  to  negotiate  or  transfer  it: 

(c)  That  he  has  knowledge  of  no  fact  which  would  impair 
the  validity  or  worth  of  the  receipt ;  and 

(d)  That  he  has  a  right  to  transfer  the  title  to  the  goods, 
and  that  the  goods  are  merchantable  or  fit  for  a  particular  pur- 
pose whenever  such  warranties  would  have  been  implied,  if  the 
contract  of  the  parties  had  been  to  transfer  without  a  receipt" 
the  goods  represented  thereby. 

Liability  of  indorser. 

Sec.  4").  The  indorsement  of  a  receipt  shall  not  make  the 
indorser  liable  for  any  failure  on  the  part  of  the  warehouseman 
or  previous  indorsers  of  the  receipt  to  fulfill  their  respective 
obligations. 


WAREHOUSEMEN.  703 

Mortgagee's  warrant. 

Sec.  46.  A  mortgagee,  pledgee  or  holder  for  security  of  a 
receipt  who  in  good  faith  demands  or  receives  payment  of  the 
debt  for  which  such  receipt  is  security,  whether  from  a  party 
to  a  draft  drawn  for  such  debt  or  from  any  other  person,  shall 
not  by  so  doing  be  deemed  to  represent  or  to  warrant  the 
genuineness  of  such  receipt  or  the  quantity  or  quality  of  the 
goods  therein  described. 

Validity  of  negotiation,  when   not  impaired. 

Sec.  47.  The  validity  of  the  negotiation  of  a  receipt  is  not 
impaired  by  the  fact  that  such  negotiation  was  a  breach  of  duty 
on  the  part  of  the  person  making  the  negotiation,  or  by  the  fact 
that  the  owner  of  the  receipt  was  induced  by  fraud,  mistake,  or 
duress  to  eutrust  the  possession  or  custody  of  the  receipt  to  such 
person,  if  the  person  to  whom  the  receipt  was  negotiated,  or  a 
person  to  whom  the  receipt  was  subsequently  negotiated,  paid 
value  therefor,  without  notice  of  the  breach  of  duty,  or  fraud, 
mistake,  or  duress. 

Subsequent  negotiation. 

Sec.  48.  Where  a  person  having  sold,  mortgaged,  or  pledged 
goods  which  are  in  a  warehouse  and  for  which  a  negotiable 
receipt  has  been  i.ssued.  or  having  sold,  moi'tgaged,  or  pledged 
the  negotiable  receipt  representing  such  goods,  continues  in  pos- 
session of  the  negotiable  receipt,  the  subsequent  negotiation 
thereof  by  that  person  under  any  sale,  or  other  disposition 
thereof  to  any  person  receiving  the  same  in  good  faith,  for  value 
and  without  notice  of  the  previous  sale,  mortgage  or  pledge, 
shall  have  the  same  effect  as  if  the  first  purchaser  of  the  goods 
or  receipt  had  expressly  authorized  the  subsequent  negotiation. 

Seller's  lien  shall  not  defeat  rights  of  purchaser. 

Sec.  49.  Where  a  negotiable  receipt  has  been  issued  for 
goods,  no  seller's  lien  or  right  of  stoppage  in  transitu  shall 
defeat  the  rights  of  any  purchaser  for  value  in  good  faith  to 
whom  such  receipt  has  been  negotiated,  whether  such  negotia- 
tion be  prior  or  subsequent  to  the  notification  to  the  warehouse- 
man who  issued  such  receipt  of  the  seller's  claim  to  a  lien  or 
right  of  sto])page  in  transitu.  Nor  shall  the  warehouseman  be 
obliged  to  deliver  or  justified  in  delivering  the  goods  to  an 
unpaid  seller  unless  the  receipt  is  first  surrendered  for  can- 
cellation. 


704  STATUTES   AT  LARGE. 

Fraudulent  issue  of  receipt,  penalty  for. 

8ec.  50.  A  warehouseman,  or  any  ofticei',  agent,  or  servant 
of  a  warehouseman,  who  issues  or  aids  .in  issuing  a  receipt 
linowing  that  the  goods  for  which  such  receipt  is  issued  have 
not  been  actually  received  by  such  warehouseman,  or  are  not 
under  his  control  at  the  time  of  issuing  such  receipt,  shall  be 
guilty  of  a  crime,  and  upon  conviction  shall  be  punished  for 
each  offense  by  imprisonment  not  exceeding  five  years,  or  by  a 
fine  not  exceeding  five  thousand  dollars,  or  by  both. 

False  statements. 

Sec.  51.  A  warehouseman,  or  any  oflicer,  agent,  or  servant 
of  a  Mai-ehouseman,  who  fraudulently  issues  or  aids  in  fraudu- 
lently issuing  a  receipt  for  goods  knowing  that  it  contains  any 
false  statement,  shall  be  guilty  of  a  crime,  and  upon  conviction 
shall  be  punished  for  each  offense  by  imprisonment  not  exceed- 
ing one  year,  or  by  a  fine  not  exceeding  one  thousand  dollars, 
or  by  both. 

Fraudulent  issue  of  duplicates,  penalty  for. 

Sec.  52.  A  warehouseman,  or  any  olliccr,  agent,  or  servant 
of  a  warehouseman,  who  issues  or  aids  in  issuing  a  duplicate  oi' 
additional  negotialile  receipt  for  goods  knowing  that  a  former 
negotiable  receipt  for  the  same  goods  or  any  part  of  them  is 
outstanding  and  isncanceled,  without  plainly  x^lacing  upon  the 
face  thereof  the  word  "duplicate,"  except  in  the  case  of  a  lost 
or  destroyed  receipt  after  proceedings  as  provided  for  in  section 
14,  shall  be  guilty  of  a  crime,  and  upon  conviction  shall  ho. 
punished  for  each  offense  by  imprisonment  not  exceeding  five 
years,  or  by  a  fine  not  exceeding  five  thousand  dollars,  or  by 
both. 

When  warehouseman  is  owner. 

Sec.  53.  Where  there  are  deposited  with  or  held  by  a  ware- 
liouseman  goods  of  which  he  is  owner,  either  solely  or  jointly 
or  in  common  with  others,  such  warehouseman,  or  any  of  his 
officers,  agents,  or  servants  who,  knowing  this  ownership,  issues 
or  aids  in  issuing  a  negotiable  receipt  for  such  goods  which  does 
not  state  such  ownershij),  shall  be  guilty  of  a  crime,  and  upon 
conviction,  shall  be  punished  for  each  offense  by  imprisonment 
not  exceeding  one  year,  or  by  a  fine  not  exceeding  one  thousand 
dollars,  or  by  both. 


AVAREIIOUSEMEN.  70") 

Penal  clause.  , 

Sec.  54.  A  warehoiisomau,  or  any  officer,  agent,  or  servant 
of  a  warehouseman  who  delivers  goods  out  of  the  possession  of 
such  warehouseman,  knowing  that  a  negotiable  receipt  the  nego- 
tiation of  which  would  transfer  the  right  to  the  possession  of 
such  goods  is  outstanding  and  uncanceled,  without  obtaining 
the  possession  of  such  receipt  at  or  before  the  time  of  such 
delivery,  shall,"  except  in  the  cases  provided  for  in  sections  14 
and  36,  be  found  guilty  of  a  crime,  and  upon  conviction  shall  be 
punished  for  each  offense  by  imprisonment  not  exceeding  one 
year,  or  by  a  fine  not  exceeding  one  thousand  dollars,  or  ])y 
iiotli. 

Same. 

Skc.  .").").  Any  person  who  deposits  goods  to  which  he  has  not 
title,  or  upon  which  there  is  a  lien  or  mortgage,  and  who  takes 
for  such  goods  a  negotiable  receipt  which  he  afterwards  nego- 
tiates for  value  with  intent  to  deceive  and  without  disclosing 
his  want  of  title  or  the  existence  of  the  lien  or  mortgage  shall 
bo  guilty  of  a  crime,  and  upon  conviction  shall  be  punished  for 
each  offense  by  imprisonment  not  exceeding  one  yeai',  or  liy  a 
fine  not  exceeding  one  thousand  dollars,  or  by  both. 

What  rules  of  law  to  govern. 

Sec.  50.  In  any  case  not  proxidcd  for  in  this  ;ul,  llic  riil<>s 
«)r  law  and  equity,  including  the  law  merchant,  and  in  particular 
I  lie  rules  relating  to  the  law  of  principal  and  agent  and  to  the 
I'ftVct  of  fraud,  misreprescniation,  duress  or  coercion,  mislnkr. 
bankruptcy,  or  other  invalidating  cause,  shall  govern. 

Interpretation    of   act. 

Sec.  57.  This  act  shall  be  so  interpreted  and  construed  as  lo 
effectuate  its  general  purpose  to  make  uniform  llie  Imw  of  lliose 
states  which  enact  it. 

Definition  of  certain  terms. 

SeO.  5S.  (1)  In  this  act,  unless  the  conlexl  or  snbjcM'l  mat- 
ter otherwise  requires — ■ 

"Action"'  includes  counler  cL-iirn.  sel-off,  ;uid  suil    in   eqnily. 

"Delivery""   means   xolnntary    li'imsfer  of    possession    I'yom   mw 

person    lo    ;inoll|ei-. 

"I'"nngilile    goods""    means    goods    of    whicli    nnv    unit    is.    from 


706  STATUTES    AT  LARGE. 

its  nature  or  by  mercantile  custom,  tueated  as  the  equivalent  of 
any  other  unit. 

"Goods"  means  chattels  or  merchandise  in  storage,  or  which 
has  been  or  is  about  to  be  stored. 

"Holder"  of  a  receipt  means  a  person  who  has  both  actual 
posse.ssion  of  such  receipt  and  a  right  of  property  therein. 

"Oi'der"  means  an  order  by  indorsement  on  the  receipt. 

"Owner"  does  not  include  mortgagee  or  pledgee. 

"Person"  includes  a  corporation  or  partnership  or  two  or 
more  persons  having  a  joint  or  common  interest. 

"To  purchase"   includes  to  take  as  mortgagee  or  as  pledgee. 

"Purchaser"  includes  mortgagee  and  pledgee. 

"Receipt"  means  a  warehouse  receipt. 

"Value"  is  any  consideration  sufficient  to  support  a  simple 
contract.  An  antecedent  or  pre-existing  obligation,  whether  for 
money  or  not,  constitutes  value  where  a  receipt  is  taken  either 
in  satisfaction  thereof  or  as  security  therefor. 

"Warehouseman"  means  a  person  lawfully  engaged  in  the 
business  of  storing  goods  for  profit. 

(2)  A  thing  is  done  "in  good  faith"  within  the  meaning  of 
this  act,  when  it  is  in  fact  done  honestly,  whether  it  be  done 
negligently  or  not. 

Prior  acts. 

Sec.  59.  The  provisions  of  this  act  do  not  apply  to  receipts 
made  and  delivered  prior  to  the  taking  effect  of  this  act. 

Repeal  of  conflicting  acts. 

Sec.  go.  All  acts  or  parts  of  acts  inconsistent  with  this  act 
are  hereby  repealed. 

Name  of  act. 

Sec.  01.  This  act  may  be  cited  as  the  "Warehouse  Receipts 
Act." 


WATEK    COMPANIES.  707 


WATER  COMPANIES. 

See,  also.  ('iv.  C.  S§  ^48  to  '>■'>-. 

An  act  to  regulate  and  control  the  sale,  rental,  and  distribution 
of  appropriated  water  in  this  state,  other  than  in  any  city, 
city  and  county,  or  town  therein,  and  to  secure  the  rights  of 
way  for  the   conveyance  of  such   water   to  the   places  of   use. 

Approved  March   12,    1SS5  ;   stats.    188.5,   p.    '.tr,. 
Amended  March  2,   181(7  ;   stats.   1897,  p.   4!i. 
Amended  February  28,   1!101  ;   stats.    1:»01.   p.   80. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assembly,  do  enact  as  folloios: 

Use  of  appropriated  public  water. 

Section  1.  The  use  of  all  water  now  api)roi)riated  or  that 
may  hereafter  be  appropriated,  for  irrigation,  sale,  rental,  or 
distribution,  is  a  public  use,,  and  the  right  to  collect  rates  or 
compensation  for  use  of  such  water  is  a  franchise,  and  except 
when  so  furnished  to  any  city,  city  and  county,  or  town,  or  the 
inhabitants  thereof,  shall  be  regulated  and  controlled  in  the 
counties  of  this  state  by  the  several  boards  of  supervisors  thereof, 
in  the  manner  prescribed  in  this  act. 

Supervisors  may  fix  rates. 

Sec.  2.  The  several  boards  of  supervisors  of  this  state,  on 
petition  and  notice  as  provided  in  section  three  of  this  act,  are 
hereby  authorized  and  required  to  fix  and  regulate  the  maximum 
rates  at  which  any  person,  company,  association,  or  corporation, 
having  or  to  have  appropriated  water  for  sale,  rental,  or  dis- 
tribution in  each  of  such  counties,  iii.iy  and  shall  sell,  rent,  or 
distribute  the  same. 

Petition  for  fixing   rates. 

Sec.  o.  Whenever  a  petition  of  nol  less  than  twenty-five 
inhabitants,  who  are  tiixiiaycrs  of  ,\ny  county  of  this  slate, 
shall,  in  writing,  petition  the  Uourd  of  supervisors  thereof,  to 
be  filed  with  the  clerk  of  said  lio.ud,  to  regulate  and  control  the 
rates  and  compensation  \o  be  coiicctcd  by  aii.\-  person,  comiiany. 
association,  or  corjjoration.  for  the  sale,  ri'ni.-il,  or  dislribulion 
of  any  appr()i)ri;iled  wiitcr,  to  nny  of  tiie  inluibitaiits  of  such 
county,  and  sliall  in  such  i>etilion  sprcify  liic  iiersons,  com- 
jianies,    .'issoci.-it  ions,    or    coi-por;itions,    or    •■my    one    or    more    of 


70S  STATUTES   AT  T.AROE. 

thorn,  whose  water  rates  arc  therein  petitioned  to  be  regiihited 
or  controlled,  the  clerk  of  such  board  shall  immediately  cause 
such  petition,  together  with  a  notice  of  the  time  and  place  of 
hearing  thereof,  to  ])e  published  in  one  or  more  newspapers  pub- 
lished in  such  county  ;  and  if  no  newspaper  be  published  therein, 
then  shall  cause  copies  of  such  petition  and  notice  to  be  posted 
in  not  less  than  three  public  places  in  such  counties,  and 
such  publication  and  notice  shall  be  for  not  less  than  four 
weeks  next  before  the  hearing  of  said  petition  by  said  board  ; 
such  notice  to  be  attached  to  said  petition  shall  specify  a  day 
of  the  next  regular  term  of  the  session  of  the  said  board  not 
less  than  thirty  days  after  the  first  publication  or  posting 
thereof,  for  the  hearing  of  said  petition,  which  shall  imjjart 
notice  to  all  such  persons,  companies,  associations,  and  corpora- 
tions mentioned  in  such  petition,  and  all  persons  interested  in 
the  matters  of  such  petition  and  notice.  Such  board  may  also 
cause  citations  to  issue  to  any  person  or  persons  within  such 
county  to  attend  and  give  evidence  at  the  hearing  of  such  peti- 
tion, and  may  compel  such  attendance  by  attachment. 

Hearing  of  petition — Value  of  water  works. 

Sec.  4.  At  the  hearing  of  said  petition  the  board  of  super- 
visors shall  estimate,  as  near  as  may  be,  the  value  of  the  canals, 
ditches,  flumes,  water-chutes,  and  all  other  property  actually 
used  and  useful  to  the  appropriation  and  furnishing  of  such 
water,  belonging  to  and  pos.sessed  by  each  person,  association, 
company,  or  corporation,  whose  franchise  shall  be  so  regulated 
and  controlled;  and  shall  in  like  manner  estimate  as  to  each  of 
such  persons,  companies,  associa'tions,  and  corporations,  their 
annual  reasonable  expenses,  including  the  cost  of  repairs,  manage- 
ment, and  operating  such  works ;  and,  for  the  i)urpose  of  such 
ascertainment,  may  require  the  attendance  of  persons  to  give 
evidence,  and  the  production  of  papers,  books,  and  accounts, 
and  may  compel  the  attendance  of  such  persons  and  the  pro- 
duction of  papers,  books,  and  accounts  by  attachments,  if  within 
their  res])('ctive  counties. 

Rules  to  be  observed  in  fixing   rates. 

Sec.  Jj.  In  the  regulation  and  control  of  such  water  rates 
for  each  of  such  persons.  comi)anies.  associations,  and  corpora- 
1  inns,  such  board  oT  sii|)iT\is()rs  iiiny  estalilish  different  rates 
;\(    whicli    water    may    :\n(l    shall    lie   sold,    rented    or   distributed, 


WATER    COAIPANIES.  709 

as  the  case  may  be  ;  and  may  also  establish  ditlereut  rates  and 
compensation  for  such  water  su  to  be  furnished  for  the  several 
different  uses,  such  as  mining-,  irrigating-,  mechanical,  manu- 
facturing, and  domestic,  for  which  such  water  shall  be  supplied 
to  such  inhabitants,  but  such  rates  as  to  each  class  shall  be 
equal  and  uniform.  Said  board  of  supervisors,  in  fixing  such 
rates,  shall,  as  near  as  may  be.  so  adjust  them  that  the  net 
annual  receipts  and  profits  thereof  to  the  said  persons,  com- 
panies, associations,  and  corporations  so  furnishing  such  water 
to  such  inhabitants  shall  be  not  less  than  six  nor  more  than 
eighteen  per  cent  upon  the  said  value  of  the  canals,  ditches, 
flumes,  chutes,  and  all  other  property  actually  used  and  useful 
to  the  appropriation  and  furnishing-  of  such  water  of  each  of 
such  i)ersons.  companies,  associations,  and  corporations:  but 
in  estimating  such  net  receipts  and  profits,  the  cost  of  any 
extensions,  enlargements,  or  other  permanent  improvements  of 
such  water  rights  or  water  works  shall  not  lie  included  as  part 
of  the  said  expenses  of  management,  repairs,  and  operating  of 
such  works,  but  when  accomplished,  may  and  shall  be  included 
in  the  present  cost  and  cash  value  of  such  work.  In  fixing  said 
rates,  within  the  limits  aforesaid,  at  which  water  shall  he  so 
furnished  as  to  each  of  such  persons,  companies,  associations, 
and  corporations,  each  of  said  lioard  of  supervisors  may  likewise 
take  into  estimation  any  and  all  other  facts,  circumstances,  and 
conditions  pertinent  thereto,  to  the  end  and  purpose  that  said 
rates  shall  be  equal,  reasonable  and  just,  both  to  such  persons. 
companies,  associations,  and  corporations,  and  to  said  inhabit- 
ants; and  each  such  board  of  supervisors  shnll  designate  what 
proportion  of  the  rates  so  fixed  shall  be  for  the  said  annual  r(>a- 
sonable  expenses  of  each  of  such  persons,  companies,  associations 
or  corporations,  and  what  proportion  of  the  rates  so  fixed  shall 
be  for  the  said  net  annual  receipts  and  profits  to  such  persons, 
companies,  associations^  or  corporations.  The  said  rates  when 
so  fixed  by  such  board,  shall  l)e  binding  and  conclusive  for  not 
less  than  one  year  next  after  their  establishment,  and  until 
established  anew  or  abrogated  by  such  board  of  supervisors,  as 
hereinafter  provided.  And  until  such  rates  shall  be  so  established, 
or  after  they  shall  have  been  abrogMli'd  liy  such  l)oard  of  super- 
visors, as  in  this  act  i)rovided,  I  he  ;utn,-il  rates  established  and 
collected  i)y  each  of  the  persons,  conipaiiics.  associations,  and 
corporations    now    furnishing,    or    tliat    shall    hereafter    furnish. 


710  STATUTES   AT  LARGE. 

appropriated  waters  for  sale,  rental,  or  distribution  to  the  in- 
habitants of  any  of  the  counties  of  this  state,  shall  be  deemed 
and  accepted  as  the  legally  established  rates  thereof.  [Section 
5  amended  February  28,  1901;  stats.  1001,  p.  SO.] 

Changing  rates. 

Sec.  6.  At  any  time  after  the  establishment  of  such  water 
rates  by  any  board  of  supervisors  of  this  state,  the  same  may 
be  established  anew,  or  abrogated  in  whole  or  in  part  by  such 
board,  to  take  effect  not  less  than  one  year  next  after  such 
first  establishment,  but  sul).iect  to  said  limitation  of  one  year, 
to  take  effect  immediately  in  the  following  manner.  Upon 
the  written  petition  of  inhabitants  as  hereinbefore  provided, 
or  upon  the  written  petition  of  any  of  the  persons,  companies, 
associations  or  corporations,  the  rates  and  compensations  of 
whose  appropriated  waters  have  already  been  fixed  and  regu- 
lated, and  are  still  subject  to  such  regulation  by  any  board  of 
supeiwisors  of  this  state,  as  in  this  act  provided  ;  and  upon  the 
like  publication  or  posting  of  such  petition  and  notice,  and  for 
the  like  period  of  time  as  hereinbefore  provided,  such  board  of 
supervisors  shall  proceed  anew,  in  the  manner  hereinbefore  pro- 
vided, to  fix  and  establish  the  water  rates  for  such  person,  com- 
pany, association,  or  corporation,  or  any  number  of  them,  in 
the  same  manner  as  if  such  rates  had  not  been  previously 
established,  and  may,  upon  the  petition  of  such  inhabitants, 
but  not  otherwise,  abrogate  any  and  all  existing  rates  thereto- 
fore established  by  such  board.  All  water  rates,  when  fixed 
and  established  as  herein  provided  shall  be  in  force  and  effect 
until  established  anew  or  abrogated,  as  provided  in  this  act. 

Record  of  rates  to  be  published. 

Sec.  7.  Each  board  of  supervisors  of  this  state,  when  fix- 
ing and  establishing,  or  fixing  and  establishing  anew,  or  abolish- 
ing any  previously  established  water,  rates,  as  hereinbefore 
provided,  shall  cause  a  record  to  be  made  thereof  in  the  records 
of  such  board,  and  cause  the  same  to  be  pul)lish('d  or  posted  in 
(ho  nianner  and  for  the  time  required  for  (h(^  itublicalioii  oi- 
l)f)sting  of  said  pelitions  and  notices. 

Water  to  be  furnished  at  rates  fixed. 

Skc.  S.  Any  and  all  ])ersons,  companies,  associations,  or  cor- 
liorations,  furnishing  for  sale,  rental,  or  distribution,  any  appro- 
priated waters  to  the  inhnliiiants  of  any  county  oi-  coiiiities  of 


WATER    COMPANIES.  711 

this  state  (other  thau  to  the  inhabitants  of  any  city,  city  and 
county,  or  town,  therein),  shall  so  sell,  rent,  or  distribute  such 
waters  at  rates  not  exceeding  the  established  rates  fixed  and 
regulated  therefor  by  the  boards  of  supervisors  of  such  counties, 
or  as  fixed  and  established  by  such  person,  company,  associa- 
tion, or  corporation,  as  provided  in  this  act. 

Penalty  for  excessive  charges. 

Sec.  9.  If  any  person,  company,  association,  or  corporation, 
whose  water  rates  for  any  county  of  this  state  have  been  fixed 
and  regulated  by  a  board  of  supervisors,  as  in  this  act  pro- 
vided, and  while  such  rates  are  in  force,  shall  collect,  for  any 
appropriated  water,  furnished  to  any  inhabitant  of  such  county 
water  rates  in  excess  of  such  established  rates,  shall  be  liable, 
in  an  action  by  any  such  inhabitant  so  aggrieved,  to  a  recovery 
of  the  whole  rate  so  collected,  together  with  actual  damages 
sustained  by  such  inhabitant,  with  costs  of  suit. 

To  sell  to  all  persons. 

Sec.  10.  Every  person,  company,  association,  and  corpora- 
tion, having  in  any  county  in  the  state  (other  than  in  any  city, 
city  and  county,  or  town  therein)  appropriated  waters  for  sale, 
rental,  or  distribution,  to  the  inhabitants  of  such  county,  upon 
demand  therefor,  and  tender  in  money  of  such  established  water 
rates,  shall  be  obliged  to  sell,  rent,  or  distribute  such  water  to 
such  inhabitants  at  the  established  rates  regulated  and  fixed 
therefor,  as  in  this  act  provided,  whether  so  fixed  by  the  board 
of  supervisors  or  otherwise,  to  the  extent  of  the  actual  su^iply 
of  such  appropriated  waters  of  such  person,  company,  associa- 
tion, or  corporation,  for  such  purposes.  If  any  person,  com- 
pany, association,  or  corporation,  having  water  for  such  use. 
shall  refuse  compliance  with  such  demand,  or  shall  neglect,  for 
the  period  of  five  days  after  such  demand,  to  comply  therewith 
to  the  extent  of  his  or  its  reasonable  ability  so  to  do,  shall  be 
liable  in  damages  to  the  extent  of  the  actual  injury  sustained 
by  the  person  or  party  making  such  demand  and  tender,  to  be 
recovered,  with  costs. 

Condemning  land  for  right  of  way. 

Sec.  n.  Whenever  any  person,  comiiany,  associalion,  or 
corporation  shall  have  acquired  the  right  to  appropriated  water 
or  shall  have  accpiired  the  right  to  appropi-iate  such  watiM-  in  this 
state,   such    persdii.    coMipany.    associnl  inn.    or    coriiorat  ioii.    may 


712  STATUTES   AT  LAKGE. 

proceed  to  eondomu  the  lands  and  premises  necessary  to  such 
right  of  way,  under  the  provisions  of  title  VII  of  part  III  of 
the  Code  of  Civil  Procedure  of  this  state,  and  amendments  made 
and  to  be  made  thereto,  and  all  the  provisions  of  said  code,  so 
f:ir  as  the  same  can  be  made  applicable,  relating  to  the  con- 
demnation and  taking  of  property  for  public  uses,  shall  be 
api)licable  to  the  provisions  of  this  act. 

Contracts  in  existence,  how  affected. 

Sec.  111/^.  Nothing  in  this  act  (-ontainod  shall  be  construed 
to  prohibit  or  invalidate  any  contract  already  made,  or  which 
shall  hereafter  be  made,  by  or  witli  any  of  the  persons,  com- 
panies, associations,  or  corporations  described  in  .section  two  of 
this  act,  relating  to  the  sale,  rental,  or  distribution  of  water, 
or  to  the  sale  or  rental  of  easements  and  servitudes  of  the  right 
to  the  flow  and  use  of  water;  nor  to  prohibit  or  interfere  with 
the  vesting  of  rights  under  any  such  contract.  [Section  11 14 
added  March  2,  1897;  stats.  1897,  p.  49.] 

Time  act  shall  take  effect. 

Sec.  12.  This  act  shall  take  effect  and  be  in  force  from  and 
after  its  passage. 

Note. — For  decisions  concerning  al)ove  act  see  Osborne  vs. 
Hem  Diego,  etc..  County,  178  U.  S.  p.  22,  and  Fellows  vs.  Los 
Ansjelf'S,  LSI  Cal.  p.  .52;  see,  also,  1.'")2  Oal.  p.  7?>0  ;  XXXVTT  C.'il. 
I>cc.  73;   VI   Cal.  App.  Doc.   048-651. 


An  act  declaring  upon  what  terms  contracts  between  persons, 
companies,  associations,  or  corporations  furnishing  water  for 
irrigation  to  the  consumers  of  such  water  sliall  be  valid,  and 
to  provide  that  such  contracts  shall  be  deemed  based  upon 
sufficient   consideration. 

Approved  March  16,   1901;  stats.   1901,  p.   331. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assemblij,  do  enact  as  folloivs: 

Contracts  between   persons  or  corporations  furnishing  water  for 
Irrigation. 
Sectfon   1.      It    is   and    sliall    be    lawful    for   ;niy   person,   com- 
pany, association,  or  corporation,  furnishing  for  sale,  rental,  or 
distribulion  any  appropriated  waters  for  purpo.se  of  irrigation. 


WATEIJ    COMPANIES.  713 

to  eiiLer  into  contracts  with  individual  consumers  of  sucli  water 
or  with  bodies  of  such  consumers,  rehiting  to  the  sale,  rental,  or 
distribution  of  such  water,  or  any  thereof,  which  contracts, 
sub.iect  to  the  restrictions  hereinafter  declared,  shall  be  valid 
to  all  intents  and  purposes,  any  law  or  rule  to  the  contrary  not- 
withstanding. 

Contracts  must  not  provide  for  rate  exceeding  established  rates. 
Sec.  2.  No  such  contract  shall  provide  for  the  sale,  rental, 
or  distribution  of  any  such  water  at  any  rate  exceeding  the 
established  rates  fixed  and  regulated  therefor  by  the  board  of 
supervisors  of  the  proper  counties,  or  fixed  and  established  by 
such  person;  company,  association,  or  corporation,  as  provided 
by  law. 

Wiiat  is  a  valuable  and  sufficient  consideration. 

Sec.  3.  Nothing  in  this  act  contained  shall  be  construed  to 
authorize  or  make  valid  any  contract  not  made  for  a  valuable 
consideration ;  but  an  agreement  on  the  part  of  such  person, 
company,  association,  or  corporation  to  sell,  rent,  or  distribute 
any  water  to  a  consumer,  without  payment  in  advance  therefor, 
or  upon  any  other  terms  to  which  such  consumer  is  not  other- 
wise lawfully  entitled,  .shall  be  deemed  and  taken  to  be  a  valu- 
able and  suffieient  consideration  for  such  contract. 

Prior  contracts  not  affected. 

Sec.  4.  Nothing  in  this  act  conlained  shall  affect  any  con- 
tract made  prior  to  the  time  that  the  board  of  supervisors  lix 
and  establish  the  rates  and  regulalioiis  for  and  under  \\  hit-h 
water  shall  be  sold  and  supplied. 

Time  act  shall  take  effect. 

Sec.  5.  This  act  shall  take  effect  and  be  in  force  from  and 
after  its  pa.ssage. 


714  STATUTES   AT  LABGE. 


An  act  to  provide  for  the  recordation  of  contracts  and  subscrip- 
tion agreements  to  stock  in  water  users'  associations,  organ- 
ized in  conformity  with  an  act  of  congress,  approved  June 
17,  1902,  and  to  regulate  recorders'  fees  for  filing,  recording 
and   indexing   same. 

Approved  March  20,   1!»07  ;  stats.   IMOT,   p.   74!l. 

The  people  of  the  State  of  California,  represented  in  senate  and 
assem'bly,  do  enact  as  folloios: 

County  recorders  to  accept  certain  books  of  water  users'  asso- 
ciations. 
SiccTiON  1.  All  county  recorders  in  this  state  are  hereby 
authorized  and  directed  to  accept  from  any  incorporated  water 
users'  association,  organized  under  the  htws  of  the  State  of  Cali- 
fornia for  the  purpo.se  of  securing  the  benefits  of  an  act  of  con- 
gress approved  June  17,  1902,  known  as  the  "Reclamation  Act," 
books  containing  printed  copies  of  agreements  with  the  United 
States,  or  with  such  water  users'  association,  in  relation  to  the 
lands  affected  by  the  projects  provided  for  by  said  act,  and 
copies  of  blank  forms  of  subscription  agreements  to  the  capital 
stock  of  such  water  users'  associations,  or  the  transfer  thereof, 
or  other  documents  necessary  to  be  recorded  by  such  associa- 
tions and  to  use  such  form  books  or  such  form  blanks  for  the 
purpose  of  recording  the  same ;  and  recorders  shall  charge  for 
tiling,  recording  and  indexing  such  documents,  papers,  writings 
or  coutracls  the  sum  of  twenty-live  cents  for  each  document. 

Time  act  shall  take  effect. 

Sec.   2.     This  act  shall  take  effect  immediately. 


STATUTES   REPEALED   HY   THE  CODE.  715 

CORPORATION  LEGISLATION  ENACTED  PRIOR  TO 
ESTABLISHMENT  OE  THE  CODES,  AND  PROVISIONS 
OE  CIVIL  CODE  EOR  REPEAL  OE  EXISTING  STATUTES. 

An   act  to  establish   a   Civil   Code. 

Approved  Man-li   21.,    187L'. 

Sec.    2.     When  this  code  takes  effect. 
2  0.     Effect  of  repeal. 
288.     Existing  corporations  not  affected. 

When  this  code  takes  effect. 

Sec.  2.  This  code  takes  effect  at  twelve  o'clock  noon  on  the 
first  day  of  January,  eighteen  hundred  and  seventy-three. 

Effect  of  repeal. 

Sec.  2U.  No  statute,  law.  or  rule  i.s  continued  in  force 
because  it  is  consistent  with  the  provisions  of  this  code  on  the 
same  subject ;  but  in  all  cases  provided  for  by  this  code,  all 
statutes,  laws,  and  rules  heretofore  in  force  in  this  state, 
whether  consistent  or  not  with  the  provisions  of  this  code,  unless 
e.Kpressly  continued  in  force  by  it,  are  repealed  or  abrogated. 

This  repeal  or  abrogation  does  not  revive  any  former  law 
heretofore  repealed,  nor  does  it  affect  any  right  already  existing 
or  accrued,  or  any  action  or  proceeding  already  taken,  except 
as  in  this  code  provided. 

Similar  provisions  :   See  Pol.  C.  §  18  and  Code  Civ.  Proc.  §  IS. 

Existing  corporations  not  affected. 

Sec.  288.  No  corporation  formed  or  existing  before  twelve 
o'clock  noon,  of  the  day  upon  which  this  code  takes  effect,  is 
affected  by  the  provisions  of  part  IV  of  division  first  of  this, 
code,  unless  such  corporation  elects  to  continue  its  existence 
under  it  as  provided  in  section  287 ;  but  the  laws  under  which 
such  corporations  were  formed  and  exist  are  applicable  to  all 
such  corporations,  and  are  repealed,  subject  to  the  jirovisions 
of  this  section. 

Note. — §  288.  Jn  llie  case  of  Market  HLrcct  Ry.  Co.  v.s.  Hell- 
man    (109    Cal.    p.    571),    the   opinion   written   by   Supreme   Court 


716  LEGISLATION    I'lilOK    TO    THE    CODES. 

Commissioner  Searls  and  concurred  in  by  Commissioners  Haynes 
and  Britt  (decision  of  the  court  in  accordance  therewith.  Justices 
McFarland,  "Van  Fleet,  Garoutte,  Henshaw,  and  Chief  Justice 
Beatty),  reads  as  follows,  after  quoting  section  288,  Civil  Code: 
*  *  *  "The  codes  when  adopted  constituted  a  compre- 
hensive system  of  laws,  and  repealed  all  existing  statutes  not 
.specially  saved  from  their  operation.  To  save  existing  corpora- 
tions fi-om  annihilation  we  may  fairly  presume  was  the  para- 
mount object  of  the  legislature.  Hence  this  section  (288).  But 
the  latter  clau.se  of  the  same  section  throws  light  upon  the  more 
general  declaration  of  the  first  clause.  It  is  as  follows :  'But  the 
laws  under  which  such  corporations  were  formed  and  exist  are 
applicable  to  all  such  corporations,  and  are  repealed,  subject  to 
the  provisions  of  this  section.' 

"Now  the  laws  under  which  corporations  loere  foruied  and 
existed  constituted  but  a  small  portion  of  the  whole  body  of  laws 
which  related  to  and  controlled  corporate  action.  As  only  those 
laws  under  which  corporations  were  formed  and  existed  were 
saved,  it  must  follow  that  the  residue  of  such  laws  were  repealed, 
whether  consistent  with  the  code  or  not."     *     *     * 

In  the  case  of  Samuel  G.  Murphy,  respondent,  vs.  Pacific  Bank, 
appellant  (119  Cal.  p.  334),  the  opinion  written  by  Supreme 
Court  Commissioner  Haynes  and  concurred  in  by  Supreme  Court 
Commissioners  Chipman  and  Belcher,  decision  of  the  court  in 
accordance  therewith,  concurred  in  by  Justices  Garoutte,  Har- 
rison, and  McFarland,  reads  as  follows  (referring  to  an  act  to 
pi-ovlde  for  the  formation  of  corporations  for  the  accumulation 
and  investment  of  funds  and  savings,  stats.  1862,  p.  199,  chap. 
187)  :  *  *  *  "It  is  further  contended  by  respondent  that 
tiie  act  of  1862  was  repealed  by  section  2  88  of  the  Civil  Code. 
That  said  act  was  repealed  so  far  that  new  corporations  could 
not  be  formed  under  it  there  is  no  doubt ;  but,  so  far  as  corpora- 
tions theretofore  formed  undei-  it  were  concerned,  it  remained  in 
force,  not  only  so  far  as  might  be  necessary  to  sustain  their 
existence  as  corporations,  but  to  fix  their  character,  define  their 
powers,  duties,  obligations,  and  liabilities,  except  in  so  far  as 
these  were  modified,  altered  or  repealed  by  inconsistent  code 
provisions  relating  to  such  corporations."  *  *  * 
See,  also : 

Spring  Valley  Water  Works  vs.   Bryant,  52  Cal.   132; 

Estate  of  Eastman,  60  Cal.  308  ; 

Robinson  vs.  Southern  Pacific  Co.,  105  Cal.  526  ; 

McOowan  vs.  McDonald,  111  Cal.  57  ; 

People    ex   rel.    Robt.    Wauyh,   respondent,    vs.    Auburn   and 
Yankee  Jim's   I'urni^ike  Co.,  appellant,   122  Cal.   335. 


STATUTES   REPEALED  BY   THE  CODE.  717 


STATUTES    REPEALED    BY  THE    CODES. 

[Page  and  chapter  iHmil)rr.s   ix-ii-i   lo   ilitj  page  ancl  cluiiitt-r  of 
tlie  stntutes  of  California  of  any  given  yeai. ] 

1850. 

Page.    Chap. 

273  117  An  act  to  provide  for  the  incorporatiou  of  col- 
le.2,es.  Amended  18r»5,  p.  110 ;  supplemented 
1863,  p.  775;  further  amended  1867-8.  pp.  60, 
218;  1860-70,  p.  419:  further  sui)plemeuted 
1871-2,  p.  10;  this  supplementary  act  amended 
1873-4,  p.  85. 

olT  1-S        .\t\    act    concerning    corporations.      Sec.    174    re- 

pealed 1851.  p.  424;  act  amended  18.">1.  p.  126; 
acl  lepcaled  1851,  p.  443,  chap.  118.  sec.  31; 
.iinended  1852,  p.  168;  extended  18.52.  p.  171; 
chap.  V  repealed  1853,  p.  92;  chap.  IV  re- 
pealed 18.53,  p.  176;  amended  1853,  pp.  140, 
274;  1854,  pp.  53,  54;  extended  1857,  p.  75; 
amended  and  supplemented  1857,  p.  171 ; 
amendment  of  1853,  p.  274,  supplemented  1857, 
p.  208 ;  original  act  extended  18.58,  p.  57  ;  this 
extending  act  amended  and  supplemented  1858. 
p.  264  ;  original  act  again  amended  1850,  p.  87  ; 
1861,  p.  84;  supplemented  1862,  p.  17;  further 
amended  1862,  pp.  110,  125 ;  1863,  pp.  34,  747, 
766 ;  supplemented  186-5-6,  p.  23 ;  pai'tially 
repealed  1865-6,  p.  748 ;  further  amended 
1869-70,  pp.  46,  402;  supplemented  1871-2, 
p.  44.3 ;  this  supplemental  act  amended  1875-6, 
p.  730 ;  act  of  1871-2,  p.  443.  declared  uncon- 
stitutional in  ChoUar  Mug.  Co.  \s.  Wil.sion,  66 
Cal.  374. 

1851. 

433  118       An  act  to  provide  for  the  incorporation   of   rail- 

road companies.  Supplemented  1852,  p.  172; 
repealed  1853,  p.  114.  (See,  further,  act  of 
1853,  p.  99.) 

523  138  An  act  to  provide  for  the  incorporation  of  mutual 
insurance  companies.  Partially  repealed 
1865-6,  p.  749. 


71S  LEGISLATION    PRIOR    TO    TME    CODES. 

1852. 
Page.    Chap. 

171  OS        An  act  to  i)i-ovi(le  for  the  incorporatiou  of  water 

companies.  (Extending  act  of  1850,  chap. 
128.)      See,  further,  act  of  1858,  p.  218. 

172  lOO       An  act  concerning  the  Independent  Oi-der  of  Odd 

Fellows.     Amended  18.1(1,  ]>.    12."). 

1853. 

87  Cm       i\n   act  to  pi'ovide  for  the  formation   of  corpora- 

tions for  certain  i(nri»»s<'s  (mannfa(!tnring. 
milling,  mechanical,  mci'cantilc,  wharfing,  dock- 
ing. <ir  clicmi(ai|.  Amended  18,"i."i,  p.  20.5: 
sni)plemen(ed  ls."i7.  ]i.  121  :  exlended  1S5S, 
p.  218  ;  amended  and  snp|ilcmente<l  1858,  p.  i;»o  ; 
1859,  p.  93 ;  amended  18G3,  p.  730 ;  1863-4. 
p.  149 ;  amended  and  supplemented  1809-70. 
pp.  132,  364;  made  applicahle  1809-70,  p.  822; 
amended  1871-2,  p.  520. 
99  72       An   act  to  provide  for   the   incor])oration   of  rail- 

road companies.  Amended  1854.  p.  82 ;  1855. 
p.  100;  1850.  p.  89;  supplemented  18.57,  p.  197; 
supplemented  and  amended  1858.  pp.  317,  320; 
repealed  1801.  p.  0)27.  (See.  further,  act  of 
1801,  p.  007.) 

114  7."*>        An  act  for  th(>  incorporation  of  \vagon-i-o;ul  coni- 

l)anies.      Amended  1850,  p.  71. 

140  92        An  act  to  amend  an  act  concerning  corporations. 

(1850.  ciiap.  128).  I'rovides  for  Masonic  cor- 
porations. 

109  121        An  act  to  authorize  the  formation  of  corporations 

for  the  construction  of  plank  or  turnpike. roads. 
Amended  1854,  \).  74;  supplemented  and 
amended  1857,  p]).  171.  280;  sec.  34  repealed 
1858,  p.  145;  partially  repealed  1858,  p.  205. 

274  175        .\n  act  to  amend  an  act  relating  to  corporations 

(1850,  chap.  128).  l»rovides  for  the  forma- 
tion of  corporations  for  the  purpose  of  erectin.s 
Odd  Fellows"  halls.  Supplemented  1857. 
p.  208;  extended  1807-S.  p.  201. 


STATUTES   REPEAF.Kl)  J5Y  THE  CODE.  719 

1855. 

Page.    Chap. 

128  105  An  act  pi-ohibilinj;  any  person  or  persons,  asso- 
ciation, company  or  cori)oration,  from  exercis- 
ing the  privileges  of  hanking  or  creating  paper 
to  circnlate  as  money. 

1857. 

75  SO       An  act  to  furtlicr  extend  the  act  concerning  cor- 

porations, passed  April  22,  1850  (chap.  128). 
Provides  for  benevolent  and  cemetery  associa- 
tions. 

1858. 

57  OS        ,\n  acl    lo  lurthcr  cxti'iid   llu-  ad    coucci  iiiiig  cor- 

porations, passed  April  22,  1,S5(»  (chap  I2S). 
Amended  and  supi)lemeuted  1858,  p.  204.  I'lo- 
vides  fnrther  for  benevolent  a.ssociations. 
21S  2<>L'  An  act  for  the  incorporation  of  water  companies. 
Amended  ISOl.  p.  228.  Extends  act  of  1853, 
providing  for  formation  of  corporations  for 
certain  jmrposes. 

1859. 

1<l4  lot        An        acl        concerning       agricultural        sociedes. 

Amended  1S(;2.  p.  .'!7  :  lS(;!i-7(»,  p.  ;u  :  1S77-8, 
p.  84. 

2<i.'!  202        Authorizing    counties    to    become    stockholders    in 

railroad  companies.  Amended  1800.  p.  20.S ; 
reiM'aled  by  Constitution  of  California,  1S7!). 
art.  IV.  sec.  31. 

2S1  207        .\n    acl    to   authorize   the   incorporation    of    rural 

ceuielery  associations.  Amended  18(m-4.  p.  12  ; 
IS'.n.  p.  204;  supplemented  IS!)!),  p.  :u;.  {\<\,v 
cojiy  of  act  see  Ai>pendix,  under  head  '■Ceme- 
teries." I 

31)1)  2,S7        .\u   act    for  the  protection  of  gas  liglit   companies. 

1861. 

H  •»'         -^11    acl    in   reference   to  cor)>oratious   organized    in 

this  state  foi-  the  purpose  of  mining  onl  of  this 
state. 


r20  I.EfiTSLATION    PRIOR    TO    TlfE    OOOES. 

1861— Continued. 


Page. 

Chap. 

533 

485 

r>67 

503 

An  act  for  the  protection  of  water  companies. 

.\ii  act  to  authorize  the  formation  of  corporations 
lo  provide  the  meml)ers  thereof  with  home- 
sleads,  or  lots  of  land,  suitable  for  homesteads. 
Supplemented  1803-4,  p.  492;  amended  1867-8, 
p.  539;  1809-70,  p.  474;  supplemented  1873-4, 
p.  525. 
007  532  An  act  to  provide  for  the  incorporation  of  rail- 
road companies,  and  the  management  of  the 
affairs  thereof,  and  other  matters  relatins 
thereto.  Amended  1862,  pp.  498.  547;  1803. 
p.  010;  1805-0.  p.  310:  amendatory  act  of  18(i3 
amended  1807-S.  ji.  705;  original  act  furtlicj- 
;iiiiciid.'d   lSr.9-T(t.  \<.  577. 

1862. 

199  187       An  act  Lo  provide  fur  the  formation  of   corporations 

for  the  accumulation  and  investment  of  funds 
and  savings.  Amended  1803-4,  pp.  158,  531 ; 
1805-0,  p.  626;  supplemented  1867-8,  p.  459; 
amended  1809-70,  p.  130;  made  applicable 
18C>9-70.  p.  524;  further  amended  1871-2,  p. 
132. 

243  227  An  act  providing  for  a  tax  on  foreign  insur- 
ance companies  doing  business  in  this  state. 
Amended  and  supplemented  1803-4,  pp.  131. 
394;  partially  repealed  1807-8.  p.  330;  made 
applicable  and  partially  repealed  1807-8,  p.  341. 

288  202  An  act  providing  for  regulation  of  the  telegraph, 
and  to  secure  .secrecy  and  fidelity  in  the  trans- 
mission of  telegraphic  messages.  Amended 
1803-4,  p.  232. 

540  417  An  act  to  authorize  the  incorporation  of  canal 
companies,  and  the  construction  of  canals. 
Amended  1805-0,  pp.  53,  604 ;  supplemented 
1805-6.  p.  786;  amended  1867-8,  p.  134.  (See. 
further,  act  of  1869-70,  p.  660;  supplemented 
1871-2,  p.  732.) 


Page.    Chap. 


76 
303 

29,-. 

429 

370 

STATUTES   REPEALED   BY   THE    CODES.  721 

1863. 

34  32       An  act  amendatory  of  an  act  concerning  corpora- 

tions.     (1850,  chap.  128.)      Provides  for  incor- 
poration of  California  Pioneers. 

101  94       An    act    concerning    the    Independent    Order    of 

Good    Templars.      Granted    corporate    powers 
under  act  of  1850,  chap.  128. 

296  215  An  act  concerning  street  railroads.  Provides 
penalty  for  overcharge. 

G24  404  An  act  in  reference  to  library  associations.  Pro- 
visions for  incorporation,  etc. ;  amended  1869- 
70.  p.  366. 

1863-4. 

An  act  authorizing  mining  companies  or  corpora- 
tions to  change  their  principal  place  of  business. 

An  act  validating  and  legalizing  defective  articles 
or  certificates  of  incorporation. 

An  act  authorizing  mining  corporations  to  estab- 
lish transfer   agencies  in  other  states. 

1865-6. 

458  376  An  act  concerning  assessments  upon  stock  of  cor- 
porations.    Supplemented  1869-70,  p.  229. 

469  386  An  act  to  provide  for  the  formation  of  chambers 
of  commerce,  boards  of  trade,  mechanics  insti- 
tutes, and  other  kindred  protective  associa- 
tions. Amended  1867-8,  p.  5 ;  amendatory  act 
amended  1885,  p.  76. 

743  543  An  act  relating  to  fire  and  marine  insurance  com- 
panies. Sections  11  and  12  repealed  1867-8, 
p.  330. 

752  546  An  act  to  provide  for  the  incorporation  of 
mutual  insurance  companies  for  the  insurance 
of  life  and  health,  and  against  accidents.  Sec. 
14  repealed  1867-8,  p.  330 ;  act  amended  1867-8, 
p.  661 ;  1880,  p.  229. 

1867-8. 
201         208       An  act  concerning  the  Ancient  Jewish  Order  of 
Kesher   shel    Barsel    (extending    act    of    1853, 
p.  274,  chap.  175). 
31— CL 


71 

72 

107 

lie; 

132 

13S 

722  LEGISLATION    PRIOR    TO    THE    CODES. 

1867-8— Continued. 

Page.    Chap. 

204  214  An  act  to  provide  for  tho  iaeorporatlon  of  such 
institutions  of  learning,  science  and  art,  as  may 
be  established  by  the  state. 

310  288  An  act  concerning  the  Independent  Order  of 
B'nai  B'rith  (extending  act  of  1853,  p.  274, 
chap.  175). 

323  200  An  act  prescribing  certain  conditions  for  the 
transaction  of  insurance  business  in  the  State 
of  California.     Supplemented  1809-70,  p.  321. 

33G  300  An  act  creating  the  office  of  insurance  commis- 
sioner. 

1869-70. 

An   act   to  authorize   the   incorporation   of  yacht 

clubs. 
An   act   relating  to  certificates   of  incorporation. 

Amendment  of  articles,  etc. 
An  act   amendatory   of   and   supplemental   to   an 
act  to  provide  for  the  formation  of  corporations 
for    cei-tain    purposes.       (Stats.    1853,    p.    87, 
chap.  65.) 

229  165  An  act  supplemental  to  an  act  concerning  assess- 
ments on  stock  of  corporations.  (Stats.  1865-6, 
p.  458,  chap.  376. ) 

321  221  An  act  supplemental  to  an  act  prescribing  certain 
conditions  for  the  transaction  of  insurance 
business.     (Stats.  1867-8,  p.  323,  chap.  296.) 

364  254  An  act  supplemental  to  an  act  to  provide  for  the 
formation  of  corporations  for  certain  purposes. 
(Stats.  1853,  p.  87,  chap.  65.) 

481  360  An  act  concerning  street  railroads,  franchises, 
etc.     Amended  1869-70,  p.  786 ;  1871-2,  p.  515. 

523  380  An  act  to  provide  for  the  formation  of  corpora- 
tions for  the  accumulation  of  funds  and  savings, 
and  the  direct  promotion  of  manufacturing  and 
mechanic  arts,  aginculture,  and  mining. 

660  454  An  act  to  authorize  the  incorporation  of  canal 
companies,  and  to  provide  for  the  construction 
of  canals  and  ditches.  Supplemented  1871-2, 
p.  732. 


STATUTES    REPEALED    BY    THE    COrtES.  723 

1869-70 — Continued. 

Page.    Chap. 

72(5  497  An  act  concerning  corporations  for  charitable 
and  beneficial  purposes.  Provides  for  incorpo- 
ration of  Improved  Order  of  Red  Men,  or 
similar  societies. 

822  r>r>3  An  act  to  provide  for  the  formation  of  corpora- 
tions for  certain  purposes.  Trading,  manu- 
facturing, mechanical  or  other  lawful  business 
or  purposes! 

S.ll)  r)<50  An  act  to  provide  for  the  official  valuation  of 
life  insurance  policies.  Amended  1871-2,  p.  97 ; 
amendatory  act  repealed  1877-8,  amendments 
to  codes,  p.  83. 

881  578  An  act  concerning  foreign  corporations.  Designa- 
tion of  agent,  etc.  In  many  respects  super- 
seded by  act  passed  1871-2,  p.  82(i,  chap.  5G0, 
as  amended  by  act  of  1889,  p.  111.  which  act 
was  superseded  by  Civ.  C.  sees.  405,  40G  as 
adopted  in  1905. 

883  580  An  act  to  provide  for  the  construction  and  main- 
tenance of  toll  roads  within  the  State  of  Cali- 
fornia. 

STATUTES  CONTINUED  IN  FORCE. 

At  the  time  of  the  adoption  of  the  codes  the  following  statutes 
affecting  corporations  were  continued  in  force  by  special  enact- 
ment (Penal  Code,  section  23.  subdivisions  8  and  20,  and  Political 
Code,  section  19,  subdivisions  8  and  20). 

Page.    Chap.  1867-8. 

004         4.54       An    act    for    the    more    effectual    prevention    of 

cruelty  to  animals,  approved  Alarch  30,  1808. 

Amended   1871-2,   p.   393;   repealed   1873-4,   p. 

502. 

1869-70. 

815  547  An  act  concerning  gas  companies  (franchises, 
etc.).  Superseded  and  in  effect  repealed  by  act 
of  1895,  p.  191,  chap.  1G9,  which  act  was 
amended  1897,  p.  210;  repealed  1903,  p.  32. 
See,  also,  sec.  19,  art.  XI,  Constitution,  as 
amended  in  1884. 


724  FORMS    AND   PRECEDENTS. 


FORMS  AND  PRECEDENTS  FOR  USE 
OF  CORPORATIONS. 

(Whenever  the  word   "county"   occurs,   if  it   applies   to   San 
Francisco  it  should  read  "city  and  county.") 


CERTIFICATE  OF  ELECTION  TOICONTINUE  EXISTENCE 
UNDER  SECTION  287  OF  THE  CIVIL  CODE. 

(Applies  to  corporations  existing  January   1,   1873.) 

We,  the  undersigned,  directors  of  the 

and  the  secretary  of  the  same,  do  hereby  certify  : 

That  the was  a  corporation  existing 

on  tlie day  of , ,  and  formed  under 

the  laws  of  the  State  of  California,  and  is  still  existing ; 

That  at  a  regular  meeting  of  the  directors  of  said  corporation 

held  on  the day  of , ,  at  the  hour  of .  .  . 

o'clock  in  the of  that  day,  at  the  office  or  principal 

place  of  business  of  said  corporation  in , 

in  said  state,  at  which  meeting  all  the  directors  of  said  corpo- 
ration were  present  and  voted,  said  directors  and  said  corpora- 
tion then  and  there,  by  the  unanimous  vote  of  all  the  directors 
of  said  corporation,  made  an  election  and  all  said  directors 
then  and  there  unanimously  resolved  to  continue  the  existence 

of  said  corporation,  the ,  under 

the  provisions  of  the  Civil  Code  of  the  State  of  California 
applicable  thereto  (approved  March  21st,  1872)  and  the  statutes 
amendatory  thereof  and  supplemental  thereto. 

In  Wit7iess  Whereof,  we,  the  said  directors  and  said 
secretary,  have  hereunto  set  our  hands  and  affixed 
the  seal  of  said  corporation,  this.  . .  .day  of 


[CORPORATE 
SEAL.] 


Directors. 
Secretarj. 


CONTINUANCE    OF    EXISTENCE    UNItEU    CODES.  (_'.) 

Note. — Continuance  of  existence  under  tlie  code  may  also  l)e 
effected  if  voted  for  by  stockholders  representing  a  majority  of 
the  capital  stock,  or  by  a  majority  of  the  members,  or  by  the 
directors  if  authorized  by  the  written  consent  of  that  number 
of  such  stockholders  or  members.      (See  Civ.  C.   S   2  87.) 

State  of  California,  |  „^ 

County  of \ 

On  this day  of ,  A.  D ,  before 

me, ,  a  notary  public  la  and  for  the 

said  county  of residing  therein,  duly  commis- 
sioned and  sworn,  personally  aijpeared 


known  to  me  to  be  the  persons  whose  names  are  subscribed  to 
and  who  executed  the  within  instrument  or  certificate,  and 
acknowledged  to  me  that  they  executed  the  same. 

In  Witness  Whereof,  I  have  hereunto  set  my  hand  and 
afiixed  my  ofiicial  seal  the  day  and  year  last  above 
[seal.]        written. 

Notary  Public  in  and  for  the  said  county 

of ,  State  of  California. 

[Indorsed.']     Filed   in    the   oflice   of   the   county   clerk   of   the 

cotmty  of ,  State  of  California,  this 

day  of ,  A.   P 

,  County  Clerk. 

By Deputy  Clerk. 

State  of  California,  )  ^^^ 

County  of \ 

I ,  county  clerk  of  the 

county  of ,  State  of  California,  hereby  certify 

the  foregoing  to  be  a  full,  true  and  correct  copy  of  the  original 

filed  in  my  oflBce  on  the day  of ,  A.  D 

Attest  my  hand  and  my  official  seal  this day  of 

[seal.]         ,  A.  D 

,  County  Clerk. 

By ,  Deputy  Clerk. 


72G  FOHMS    AND    PRECEUKNTS. 


CERTIFICATE    OF    EXTENSION   OF   TERM    OF    CORPO- 
RATE EXISTENCE  UNDER  SECTION  401  OF  THE 
CIVIL  CODE. 

(As  adoplfd  in   ]905.     See  Civ.   C.   sec.   401,  p.   88,  ante.) 

At  a  meeting  of  the  stockholders  of , 

a  corporation,  held  ou  the day  of ,  A.  D , 

at  the  principal  place  of  business  of  said  corporation  at 

county  of ,  State  of  California   (said  meeting 

having  been  expressly  called  by  the  directors  of  said  corporation 
for  considering  the  subject  of  extending  the  term  of  the  corporate 
existence  of  said  corporation),  the  following  resolution,  to  wit: 

Resolved,  That  the 

hereby  extends  the  term  of  its  corporate  existence  from 

years,    the   period   set   forth   in    its   original 

articles  of  incorporation,  to  the  pei'iod  of 

years  from  its  formation, 

wiis  offered  by   seconded  by 

,  and  wns  thereafterwards 

voted  upon  by  the  stockholders  present  at  said  meeting,  and  was 
;oted  for  by  [stockholders  representing  two  thirds  of  the  capital 
stock]  [two  thirds  of  the  members]  of  said  corporation  and  was 
carried  ;  and  we  hereby  certify  that  the  foregoing  is  a  full,  true 
and  correct  statement  of  the  proceedings  of  the  said  meeting 
upon  such  vote  upon  said  resolution. 


[COBPOEATE  Chairman  of  said  meeting. 

SEAL.]  

Secretary  of  said  meeting. 
Appro\ed  : 


Members  of  the  board  of  directors  of  said 
corporation  and  a  majority  thereof. 

Note. — Extension  can  also  be  effected  by  written  assent  of 
two  thirds  of  the  members,  or  of  ."Stockholders  representing  two 
thirds  of  the  capital  stock,  certified  by  the  chairman  and  secre- 
tary of  the  meeting  and  a  ma.iority  of  the  directors. 


EXTENSION   OF   CORPORATE  EXISTENCE. 


State  of  Califobnia, 

County  of 

On  this day  of A.  D ,  before  me. 

a  uotary  public  iu  and  for  the  said 

county  of State  of  California,  residing  therein. 

duly  commissioned  and  sworn,  personally  appeared 

known  to  me  to  be  the  chairman  of  the  meeting 

of  the  stockholders  of ,  a   corporation. 

held  on  the day  of ,  A.  D ,  as  described 

in  the  within  and  annexed  instrument,  whose  name  is  subscribed 

to  said  instrument  as  such  chairman,  and   

known  to  me  to  be  the  secretary  of 

said  meeting  of  said  stockholders  of  said  company,  whose  name 
is  subscribed  to  said  instrument  as  such  secretary,  and  they 
severally  acknowledged  to  me  that  they  executed  said  instrument 
as  such  chairman  and  secretary  respectively  of  said  meeting  of 
stockholders  of  said  corporation  ;  and  on  the  same  day  personally 

appeared  before  me : 

known    to 

me  to  be  the  directors  of  said and 

to  be  and  to  constitute  a  majority  of  the  directors  of  said  cor- 
poration, whoso  names  are  subscribed  to  said  instrument  as  such 
directors,  and  as  a  majoi'ity  thereof,  and  they  severally  acknowl- 
I'dged  to  me  that  thoy  executed  said  instrument  as  directors  of 
said 

Ill  Witness  Wlicreaf,  I  have  hereunto  set  my  hand  and 
affixed  my  official  seal  at  my  office  in  the  county 
of State  of  California,  the 

[.SEAi,.  I        day  and  year  in  this  certificate  last  above  written. 


Xolary    I'ublic    in    and    for    the    county    of 

Slate  of  California. 

\  linlorsid.]      I'Mlcd    in    llir    otlice    of    tlic   county    clerk    of    the 

county  of State  of  Califcjniin,  tiiis 

day  of \.  I) 

County   Clerk. 

By Deputy   Clerk. 


728  forms  and  precedents. 

State  of  California, 

County  of 

I,   ,  county  clerk  of  said  county, 

do  hereby  certify  the  foregoing  to  be  a  full,  true  and  correct 
copy  of  the  certificate  of  extension  of  term  of  corporate  exist- 
ence of ,  a  corporation, 

on  file  in  my  office,  and  that  I  have  carefully  compared  said  copy 
with  the  original. 

In  Witness  Whereof,  I  have  hereunto  set  my  hand  and 

[seal.]        afiixed  my  official  seal,  this day  of , 

A.  D 

Clerk. 

By ,  Deputy  Clerk. 


CERTIFICATE  OF  EXTENSION  OF    CORPORATE  EXIST- 
ENCE UNDER  SECTION  7,  ARTICLE  XII, 
CONSTITUTION. 

We,   the   undersigned,   president   and  secretary,   and   wo.    the 

undersigned,  a  majority  of  the  directors  of  the 

do  hereby  certify  : 

That  the is  a  corporation  incorporated 

on  the day  of A.  D.  . . .  .,  for  a 

period  of   years,  and  formed  under  the  laws  of  tho 

State  of  California,  and  is  still  existing  ; 

That  at  a  [regular  meeting]  [called  meeting]  of  the  stock- 
holders of  said  corporation  [called  for  the  express  purpose  uf 
considering  the  subject  of  the  extension  of  its  corporate  exist- 
ence] held  on  the day  of ,  A.  D 

at  the  office  or  principal  place  of  business  of  said  corporation  at 

,    in    said    state,    at    which    meeting 

[stockiiclders  representing  two  thirds  of  the  capital  stock]  [two 
thirds  of  the  members]  of  said  corporation  were  present  and 
voted,  said  stockholders  and  said  corporation  then  and  there,  by 
the  affirmative  vote  of  [stockholders  representing  two  thirds  of 
the  capital  stock]  [two  thirds  of  the  members]  of  said  corpora- 
tion did  then  and  there  resolve  to  extend  the  existence  of  said 

corporation,    the    ,    under    tho 

provisions  of  section  7,  article  XII,  of  the  constitution  of  the 


EXTENSION    or    CORPORATE   EXISTENCE.  729 

State  of  California,  for  a  period  of    years  from  and 

after  the day  of   ,  A.  D 

In  Witness  Whereof,  we,  the  said  president  and  said 

secretaiw.  and  we,  the  said  directors  of  said  cor- 

r CORPORATE     poration,  have  hereunto  set  our  hands  and  affixed 

SEAL.]        the  seal  of  said  corporation,  this.... day  of , 

A.  D 


President  of  said  corporation. 
Secretary  of  said  corporation. 


Approved : 


Members  of  the  board  of  directors  of  said 

corporation,  and  a  majority  thereof. 

Note. — Extension    under    this    head    can    also    be    effected    by 

written   assent    of    stockholders    representing    two    thirds    of    the 

capital  stock  or  of  two  thirds  of  the  members  of  the  corporation, 

attested  by  the  president  and  secretary  and  directors,  as  above. 

State  of  California,  . 

y   ss. 
County  of 

On  this day  of ,  A.  D ,  before  me. 

a  notary  public  in  and  for  the  said 

county  of ,  State  of  California,  residing  therein,  duly 

commissioned  and  sworn,  personally  appeared 

known  to  me  to  be  the  president  of , 

a  corporation  described  in  the  within  and  annexed  instrument, 
wkose  name  is  subscribed  to  said  instrument  as  such  president, 

and ,  known  to  me  to  be  the 

secretary  of  said , 

whose  name  is  subscribed  to  said  instrument  as  such  secretary, 
and  they  severally  acknowledged  to  me  that  they  executed  said 
instrument  as  president  and  secretary  respectively  of  said  cor- 
poration ;  and  on  the  same  day  personally  appeared  before  me, 


7."W  KORi^rS    AM)    I'RECF.nENTS. 

known  to  nie  to  he  Ibe  flirectors  oL'  said , 

and  to  be  and  to  constitute  a  majority  of  the  directors  of  said 
corporation,  whose  names  are  suhscrihed  to  said  instrument  as 
such  directors,  and  as  a  majority  thereof,  and  they  severally 
acknowledged    to    mo    that    they    executed    said    instrument    as 

(lii-cclois  of  said 

//(    Witness   Whereof.  I  have  hereunto  set  my  hand  anil 
affixed  my  official  seal  at  my  office  in  the  county 

of State  of  California,   the 

IsKAi.  I        day  nnd  year  in  this  certificate  last  above  written. 


Notary   Public  in   and  for  the  county   of 
,  State  of  California. 

[Indorsed.]     Filed  in  the  office  of  the  county  clerk  of  the 

county  of ,   State  of  California,  this day 

of ,  A.  D 

fjounty  Clerk. 

By Deputy  Clerk. 

"State  of  Camfoknia,  |    ^^ 

County  of \ 

l^   county  clerk  of  the 

county  of State  of  California,  hereby  certify 

Ihe  foregoing  to  be  a  full,  true  and  correct  copy  of  the  original 

certificate  of  extension  of  rorporate  existence  of 

,    a    corporation. 

filed  in  my  office  on  the day  uf V.  D 

Affe.'it  my  hand  and  my  official  seal  this day  of 

[.SEAE.]  \.    1> 

County  Clerk. 

p,v l»opnly  Clerk. 


INCORPORATION    WITIf    (APITAT.    STOCK. 


CORPORATIONS  FORMED  WITH  CAPITAL  STOCK. 


ARTICLES  OF  INCOKl'OKATION 

OF    THE 

Know  all  Men  hi)  These  PreseiilH: 

That  we,   the   undersigned,   a   majority   of  whom   are  citizens 
and  residents  of  the  State  of  California,  have   this  day  volun- 
tarily associated  ourselves  together  for  the  purpose  of  forming 
a  corporation  under  the  laws  of  the  State  of  California. 
And  We  Hereby  Cert  if  if. 

First:  That  the  name  of  said  corporation  shall  be 

Second  :  That  the  purposes  for  which  it  is  formed  are 


Third:  That  the  place  where  the  pi'incipa!  business  of  said 
corporation  is  to  be  transacted  is   

Fourth:  That  the  term  for  which  said  corporation  is  (o 
exist  is years  from  and  after  the  date  of  its  incor- 
poration. 

Fifth  :  That  the  number  of  directors  or  trustees  of  said  cor- 
poration shall  be ,  and  that  the  names  and  residences 

of  the  directors  or  trustees  who  are  api)ointed  for  the  first  year 
and  to  serve  until  the  election  and  (|ualitication  of  such  officers, 
are  as  follows,  to  wit : 


NAMKS. 

WHOSE   RESIDENCE    IS   AT. 

i.52  I'OHMS    AM)    PRECEDENTS. 

*  Sixth  :  That  tlie  amount  of  the  capital  stock  of  said  cor- 
poration is dollars, 

and  the  number  of  shares  into  which  it  is  divided  is 

of   the  par  value   of dollars   each. 

Seventh  :  That  the  amount  of  said  capital  stock  which  has 

been  actually  subscribed  is dollars. 

and  the  following  are  the  names  of  the  persons  l)y  whom  the 
same  has  been  subscribed,  to  wit : 


NAMES    OF    SUBSCRIBERS. 

NO.  OF  SHARES. 

AMOUNT. 

t  In  Witness  Whereof,  We  have  hereunto  set  our  hand  and 
seals,  this day  of ,  A.  D.  19.  . 

[Seal.] 

[Seal.] 

[Seal.] 


Signed  and  Sealed  m    ,  ro,         n 

'       „  ,         [Seal.] 

ilie  Presence  of:  ^^        ^ 
[Seal.] 

[Seal.] 

[Seal.] 


*  See  section  290,  subdivision  6,  Civil  Code,  for  statement 
articles  must  contain  where  shares  are  classified  into  preferred 
and  common  stock. 

f  All  directors  should  sign  and  acknowledge. 


INCORPORATTON    WTTIl    CAPITAL    STOCK.  733 

State  oi'  California,  [ 

County  of j 

On  this day  of ,  A.  D ,  before 

me,   ;i  notary  public  in  and  for  said 

county,    residing    tlieroin,    duly    commissioned   and    sworn,    per- 
sonally appeared 

known  to  me  to  be  the  person.  .  whose  name subscribed 

to  the  foregoing-  instrument,  and    ..he.,    duly   acknowledged   to 
me  that  .  .he.  .  executed  the  same. 

In    Witness    Whereof,    I    have    hereunto    set   my    hand 
and  affixed  my  official  seal,   at  my  office  in   said 
[Seal.]       county,  the  day  and  year  in  this  cer- 
tificate last  above  written. 

Notary  Public  in  and  for  the  county  of 

,  State  of  California. 

[Indorsed.]     Filed   in    the   office   of   the   county  clerk   of   the 

county  of this day   of 

A.  D 

County  Clerk. 

P.y ,  Deputy  Clerk. 

State  of  California,  I 

y  ss. 
County  of j 

I,    ,  county  clerk  of  the  county  of 

State  of  California,  do  hereby  certify  the  within  to  be  a  full. 

true,  and  correct  copy  of  articles  of  incorporation  of 

as  remains  on  file  in  this  office. 

In  Witness  Whereof,  I  have  hereunto  set  my  hand  and 

affixed  my  ofiicial  seal,  this day 

of ,  A.  D 

[SEAL.l  ,    Clerk. 

By ,  Deputy  Clerk. 


734 


FORMS    AND    rRECKOENTS. 


CORPORATIONS  FORMED  WITHOUT  CAPITAL  STOCK. 

ARTICLES  OF  INCOriL'OliATION 

OF  THE 

KiKiir  nil  Men  Inj  These  Presents: 

That  we.  the  undersigned,  citizens  and  residents  of  the  State 
of  California,  do  hereby  voluntarily  associate  ourselves  togetlier 
for  the  purpose  of  incorporating  a  private  corporation  under  the 
laws  of  the  State  of  California. 
And  We  do  Uerehy  Certify, 

First  :  That  the  name  of  said  corporation  shall  he 

Second  :     That   the   purposes   for   which   said   corporation   is 
formed  are   


Third:     That  the  place  where  the  principal  business  of 'said 
corporation  is  to  be  transacted  is 

Fourth  :      That   the    term   for   which   said    corporation    is   to 

exist  is years,  from  and 

after  the  date  of  its  incorporation. 

Fifth:      That   the   number  of  directors   of   said   corporation 

shall  be ,  and  the  names  and  residences  of  the 

directors  who  are  appointed  for  the  first  year,  and  to  serve 
until  the  election  of  such  officers,  and  their  qualification,  are 
as  follows,   to  wit : 


NAMES. 

RESIDENCES. 

1 

ixcoRPonvTinx  witiioi  t  capitat,  stock. 


r8.- 


Tliat  on  tlio day  of A.  D in  tln" 

county  of in  suid   Stiito  of  California,   an 

olection  was  held  for  directors ;  that  said  election  was  held 
in  accordance  with  a  resolution  adopted  at  the  last  prior  regular 

niocting'  of  said  association,  held  on  the day  of 

A.  I) ,  in  the  ofEce  of  said  association  at 

State  of  California  ;  that  notice  of  such  meeting  for  the  election 
of  directors  was  given  to  the  members  of  said  association  ;  that 
a  majority  of  the  memljers  of  said  association  who  were  present 
voted  at  such  election,  and  that  the  result  thereof  was  that  the 
directors  hereinbefore  named  were  declared  dulj'  elected. 

///  Wif)ivss  Wlitrrof.  We  have  hereunto  set  our  hands  and 

seals,  this day  of A.  D 

[Seal.] 

[Seal.] 

[Seal.] 

[Seal.] 

[Seal.] 

[Seal.] 

[Se.\l.] 

[Seal.] 

[Seal.] 

[Seal.] 

[Seal.] 


Signed  and  Scaled  in 
the  Presence  of  : 


State  of  Califoexia, 
County  of   .... 


and 


being  duly  sworn,  depose  and  say  tlnit  they  were  the  officers 
(hat  conducted  the  election  for  directors  above  mentioned;  that 
said  election  was  held,  and  that  the  time  and  place  of  said 
election  and  the  result  thereof,  as  above  set  forth,  are  true  of 
their  own  knowledge. 

Subsci'ibed     and     sworn     (o  > 
before  me,  this.  .  .  .day  of | 

A.  D /       ;.;■■■■■ 

I  (hairnian. 


Notary  I'ublic  in  and  for 

[seal.]    the   county    of 

State  of  California. 


Secretary. 


736  forms  and  precenents. 

State  of  California, 

County  of 

On  this day  of ,  A.  D ,  before 

me,   ,  a  notary  public  in  and  for  said  county. 

residing    therein,    duly    commissioned    and    sworn,     personally 

appeared   

,  known  to 

me   to  be  the  person .  .    whose  name subscribed   to  the 

foregoing  instrument,  and    ....   duly  acknowledged  to  me  that 
....  executed  the  same. 

In  Witness  Whereof,  I  have  hereunto  set  my  hand  and 
affixed  my  official  seal,  at  my  office  in  said  county, 
[seal.]        the   day   and   year   in    this   certificate   last   above 
written. 

Notary  Public  in  and  for  the  county  of 

,  State  of  California. 

[Indorse^l.^     Filed   in   the   office   of   the   county   clerk   of   the 

county  of ,  this day  of , 

A.  D 

,  County  Clerk. 

By ,  Deputy  Clerk. 

State  of  California,  [ 

County  of \ 

I, ,  county  clerk  of  the 

county  of State  of  California,  do  hereby 

certify  the  within  to  be  a  full,  true  and  correct  copy  of  articles 
of  incoiijoration  of   

as  remains  on  file  in  this  office. 

In  Witness  Whereof,  I  have  hereunto  set  my  hand  and 

affixed  my  official  seal  this day 

[SEAL.l         of   ,  A.  D 

,  Clerk. 

By ,  Deputy  Clerk. 


CO-OPEBATIVE   ASSOCIATIONS. 


737 


CO-OPERATIVE  ASSOCIATIONS. 


ARTICLES  OF  INCORPORATION. 

OF  THE 


Knoio  all  Men  by  These  Presents: 

That  we.  the  undersigned,  a  majority  of  whom  are  citizens  and 
residents  of  the  State  of  California,  have  this  day  voluntarily 
associated  ourselves  together  for  the  purpose  of  forming  a 
cooperative  association  under  the  provisions  of  sections  6536, 
653c,  and  653d  of  the  Civil  Code  of  the  State  of  California. 
.1  nd  We  Hereby  Certify, 

First  :  That  the  name  of  said  corporation  shall  be 


Second : 
formed  are 


That   the   purposes   for   which   said   corporation    is 


Third  :  That  the  place  where  the  principal  business  of  said 
corporation  is  to  be  transacted  is 

Fourth  :  That  the  term  for  which  said  corporation  is  to 
exist  is years  from  and  after  the  date  of  its  incorporation. 

Fifth  :  That  the  number  of  directors  of  said  corporation  shall 

be ,  and  the  following  are  the  names  and  residences  of 

those  who  are  appointed  for  the  first  year  : 


NAMES. 

RESIDENCES. 

738  FOBilS   AND   PRECEDENTS. 

Sixth  :  That  the  amount  which  each  member  shall  pay  upon 

admission,  as  membership  fee.  is dollars,  that 

the  parties  signing  these  articles  have  actually  paid  said  sum  of 

dollars  each  as  membership  fee.  and  that 

the  right  of  each  and  every  member  shall  be  equal. 

In  Witness  Whereof.  We  have  hereunto  set  our  hands 

and  seals.  thLs dav  of  A.  D 

[Seal.] 

I  [Seal.] 

I   [Seal.] 

\ [Seal.] 

) [Seal.] 

[Seal.] 

[Seal.] 

I [Seal.] 

[ [Seal.] 

'   [Seal.] 

[Seal.] 

State  of  Califoenia.  ) 

County  of ) 

On  this day  of A.  D before 

me a  notary  public  in  and  for  the 

county  of residing  therein,  duly  commissioned 

and  sworn,  personally  appeared   


known  to  me  to  be  the  person. .  whose  name subscribed 

to  the  within  instrument,  and  ....  acknowledged  to  me  that  .... 
executed  the  same. 

In  Witness  Whereof.  I  have  hereunto  set  my  hand  and 
affixed  my  official  seal  the  day  and  year  in  this  cer- 
[.'iEAL.]        tificate  last  above  written. 

Notary    Public    in    and    for    the    county    of 

,  State  of  California. 

[Indorsed.]      Filed   in    the   office   of   the   countj-   clerk   of   the 

county  of ,  State  of  California,  this day 

of...'. A.  D 

County  Clerk. 

By ,  Deputy  Clerk. 


co-operative  associations.  739 

State  of  California,  ) 

County  of j 

I,   county  clerk  of  the  county  of , 

State  of  California,  do  hereby  certify  the  within  to  be  a  full. 
true,  and  correct  copy  of  articles  of  incorporation  of 

as  remains  on  file  in  this  office. 

In  Witness  Whereof,  I  have  hereunto  set  ray  hand  and 

affixed  my  official  seal  this   day 

of ,  A.  D 

[seal.]  ,    Clerk. 

By ,  Deputy  Clerk. 


CERTIFICATE  OF  CREATION  OF  BONDED 
INDEBTEDNESS. 

State  of  California,  /  „ 

'  y  ss. 

County  of \ 

We ,  president  of 

,   a   corporation 

duly  incorporated,  organized,  and  existinjr  under  and  by  virtue 

of  the  laws  of  the   State  of   California,   and  chairman   of  the 

meeting  of  the  stockholders  thereof  hereinafter  mentioned,  and 

,  secretary  of  said  corporation  and 

secretary  of  said  meeting  of  the  stockholders  thereof  hereinafter 

mentioned  ;  and  we.  the  undersigned 

being  a  majority  of  the  directors  of  said 

,  a  corporation,  do  hereby  certify  and  declare  as 

follows : 

That is  and  was  during 

all  the  times  hereinafter  mentioned  a  corporation  duly  incor- 
porated, organized,  and  existing  under  and  by  virtue  of  the  laws 
f)f  the  State  of  California,  and  having  its  office  and  principal 

place  of  business  at ,  State  of 

California,  as  by  its  articles  of  incorporation,  duly  filed  in  the 

office  of  the  county  clerk  of  said 

and  in  the  office  of  the  .'iecretary  of  state  of  the  State  of  Cali- 
fornia, will  more  fully  appear; 


740  FORMS    AND   PRECEDENTS. 

That  the  amount  of  the  capital  stock  of  the  said  corporation 

authorized  by  its  articles  of  incorporation  is 

dollars,  divided  into 

shares  of  the  par  value  of dollars  each ;  that 

of   said shares 

shares  have  been  subscribed  for  and  are  issued  and  outstanding ; 

That  the  number  of  directors  of  said  corporation  as  provided 
by  its  articles  of  incorporation  is ,  and  said 


constitute  a  majority  of  said  board  of  directors ; 

That  said is  and  was  at  all  the 

times  herein  mentioned  the  president  of  said  corporation,  and 

is  and  was  at  all  the  times  herein 

mentioned  the  secretary  of  said  corporation ; 

That  at  a  meeting  of  the  board  of  directors  of  said 

duly  called,  noticed  and  held  at  the  oflSce 

of  the  company,  room ,  California,  on 

the day  of ,   ,  at  which  meeting 

of  said  board  all  the  members  thereof  were  present  and  con- 
curred therein,  the  following  resolution  was  adopted  by  the 
unanimous  vote  of  all  the  directors  of  said  corporation,  viz. : 

Whereas,  The  directors  of   , 

a  corporation  created,  organized,  and  existing  under  the  laws 
of  the  State  of  California,  deem  it  expedient  to  create  a  bonded 

indebtedness  of  the  corporation  to  the  amount  of   

in  United  States  gold  coin,  for  the  purpose  of 

providing  moneys  to  pay  the  existing  indebtedness  of  the  corpo- 
ration and  acquiring  property  to  be  used  in  the  business  of  the 
corporation,  and  in  extending  the  business  and  developing  the 
properties  of  the  corporation,  and  for  legitimate  and  necessary 
purposes,  which  bonded  indebtedness  shall  be  secured  by  a 
mortgage  or  deed  of  trust  covering  all  of  the  property,  both  real 
and  personal,  now  owned  by  the  corporation,  or  which  it  may 
hereafter  acquire.     Now,  therefore,  be  it 

Resolved,  That  a  meeting  of  the  stockholders  of  this  corpo- 
ration be,  and  the  same  is  hereby  called,  and  will  be  held  at  the 

office  of  the  corporation,   room    

,   State  of  California    (that  being  the  office 

and  principal  place  of  business  of  the  corporation,  and  the  build- 
ing where  the  board  of  directors  usually  meet)  on 

the   day  of   at  the 

hour  of  ....  o'clock  . .  m.,  for  the  purpose  of  considering  and 
acting  upon  a  proposition  to  create  a  bonded  indebtedness  to  the 


CREATION    OF   BONDED   INDEBTEDNESS.  741 

amount  of   ,  United  States  gold 

coin,  for  the  purpose  of  providing  moneys  to  pay  the  existing 
indebtedness  of  the  corporation,  and  acquiring  property  to  be 
used  in  the  business  of  the  corporation,  and  in  extending  tlie 
business  and  developing  the  properties  of  the  corporation,  and  for 
legitimate  and  necessary  purposes,  and  to  secure  the  same  by  a 
mortgage  or  deed  of  trust  covering  all  of  the  property,  both  real 
and  personal,  now  owned  by  the  corporation  or  which  it  may 
hereafter  acquire  ;  and  that  the  secretary  of  the  corporation  cause 
notice  of  said  meeting  to  be  given  to  the  stockholders  of  said 
corporation,  by  publication  in  a  news- 
paper printed  and  published   in    

State  of  California,  once  a  week  for  at  least  sixty  days  prior  to 

the  said day  of  

which  notice  shall  specify  the  object  of  the  meeting,  and  shall 
state  the  amount  of  the  bonded  indebtedness  wliich  it  is  proposed 
to  create  and  shall  be  in  substantially  the  following  form : 

"NOTICE  to  the  stockholders  of  the    

is  hereby  given  in  pursuance  of  a  resolution  of  the  board  of 
directors  of  said  corporation,  unanimously  adopted  at  a  meeting 

of  said  board,  held  at  the  office  of  the  company,  in  the 

State  of  California,  on  the 

day  of   a  meeting  of  the  stockholders  of  the 

will  be  held  at  the  office  of  the 

company,  room  ,  State  of  Cali- 
fornia (the  same  being  the  principal  place  of  business  of  said 
corporation  and  the  building  where  said  board  of  directors  usu- 
ally meet) ,   on    the    day  of    

at  the  hour  of   ....    o'clock    .  .  m.,  for  the  purpose  of 

considering   and    acting   upon   a   proposition    to   create   a  bonded 

indebtedness  of  said  corporation,   to   the  amount  of 

,    in  United   States  gold  coin,   for   the   purpose   of 

providing  moneys  to  pay  the  existing  indebtedness  of  the  corpo- 
ration and  in  extending  the  business  and  developing  tiie  prop- 
erties of  the  corporation,  and  for  legitimate  and  necessary 
purposes,  such  bonded  indebtedness  to  be  secured  by  a  mortgage 
or  deed  of  trust  upon  all  the  property  now  owned  by  the  corpo- 
ration, or  which  it  may  hereafter  acquire. 

"By  order  of  the  board  of  directors. 


"Secretary  of  the   " 

And  further  Resolved,  That  in  addition  to  such  notice  by  pub- 
lication the  secretary  of  this  corporation  shall  address  a  like 
notice  to  each  of  the  stockholders  of  this  corporation,  whose 
names  appear  on  the  corporation's  books,  as  sufficiently  ad- 
dressed, at  his  place  of  residence,  if  known,  and  if  not  known, 


742  FORMS    AND   PRECEDENTS. 

then  at  the  principal  place  of  business  of  the  corporation,  which 
notice  shall  be  mailed  to  such  stockholders  at  least  thirty  (30) 
days  before  the  day  appointed  for  such  meeting. 

And  we  further  certify  that  the  by-laws  of 

do  not  prescribe,  and  never  have  prescribed, 

llie  newspaper  in  which  notices  of  meetings  of  its  stockholders  or 
directors  are  to  lie  published; 

And  we  do  further  certify  that,  in  pursuance  of  the  foregoing 

resolution,  the  said ,  the  secretary 

of  said  corporation,  caused  to  be  published  in , 

which  is,  and  was  at  all  times  herein  mentioned,  a  newspaper 

of  general  circulation  printed  and  published  daily  in  said 

,  State  of  California,  a  notice  whereof 

the  following  is  a  copy  [insert  printed  copy  of  newspaper 
notice]. 

That  said  publication  of  said  notice  was  commenced  in  said 

newspaper  on ,  and  the 

same  was  published  in  the  regular  issues  of  said  new.spaper  on 
the  following  days,  to  wit :    

being  once  a  week  for  at  least  sixty  (60)  days  prior  to , 

the day  of ,   ,  the  day  fixed 

for  said  stockholders'  meeting,  and  that  the  affidavit  of  the  due 
publication  of  said  notice,  marked  exhibit  "A,"  is  hereto  at- 
tached and  made  a  part  hereof ; 

And  we  further  certify  that  on  the day  of 

a  true  copy  of  said  notice  was,  by  the 

secretary  of  said  corporation,  addressed  and  mailed  to  each 
of  the  stockholders  of  said  corporation  whose  names  appeared 
upon  the  books  of  the  corporation  as  sufficiently  addressed,  and 
to  every  stockholder  of  the  corporation  whose  name  appeared 
upon  the  books  of  the  corporation  as  sufliciently  addressed  from 

and  including  the  said day   of ,    

to  and  including  the day  of ,  Said 

notices  were  mailed  to  said  stockholders  by  depositing  the  same, 
addressed  to  each  of  said  stockholders  at  his  place  of  residence, 

in  the  United  States  post  office  in , 

State  of  California,  with  the  postage  thereon  fully  prepaid ; 
that  at  the  time  said  notices  were  so  addressed  and  mailed  to 
such  stockholders,  the  name  of  each  stockholder  of  the  corpo- 
ration appeared  on  the  books  of  the  corporation  sufficiently 
addressed,  and  the  residence  of  each  stockholder  was  known  to 


CREATION    OF    BONOED    INDEBTEDNESS.  743 

said  secretary  ;  and  that  the  aflklavit  of  said 

the  secretary  of  said  corporation,  marked  exhibit  "B,"  showing 
such  mailing  of  such  notices,  is  hereto  attached  and  made  a 
part  hereof ; 

And  we  do  further  certify  and  declare  that  in  pursuance  of 
said  resolution   and  notice,   and  on   the  day  appointed   therein, 

to  wit :  on ,  the day  of 

at  the  hour  of o'clock... m.  of  that  day,  at  the  office  of 

said  corporation,   room , 

State  of  California  (the  same  being  the  principal  place  of  busi- 
ness of  the  corporation,  and  being  the  building  where  the 
board  of  directors  usually  meet),  said  meeting  of  the  stock- 
holders of duly  took 

place  and  was  held  ;  that  the  said  meeting  was  called  to  order 
by ,  the  president  of  said  corpo- 
ration,  and   on   motion   duly   made,    seconded   and   carried,    the 

said ,  president  of  said  corporation, 

was  unanimously  elected  chairman  of  the  meeting  and  acted  as 
such  chairman,  and  on  motion  duly  made,  seconded  and  carried, 

,  the  secretary  of  said  corporation, 

was  unanimously  elected  secretary  of  said  meeting  and  acted 
as  such  secretary  ; 

And  we  do  further  certify  and  declare  that  at  said  stock- 
holders' meeting  there  were  present,  in  person  and  represented 
by  proxies  in  writing,  duly  filed  with  the  secretary  as  required 
by    the   by-laws    of   the   corporation,    stockholders    holding   and 

representing  upon  the  books  of  the  company shares 

of  the  subscribed  capital  stock  thereof: 

And  we  do  further  certify  and  declare  that  the  following 
proceedings  of  said  meeting  of  stockholders  were  then  taken 
and  had : 

The  chairman  stated  that  the  meeting  had  been  called  by 
the  board  of  directors  of  the  corporation  for  the  purpose  of 
considering  and  acting  upon  a  proposition  to  create  a  bonded 

indebtedness  of  said  corporation  to  the  amount  of 

dollars,  in  United  States  gold  coin,  for  the 

purpose  of  providing  moneys  to  pay  the  existing  indebtedness 
of  the  corporation  and  acquiring  property  to  be  used  in  the 
i)usiness  of  the  corporation  and  in  extending  the  business  and 
developing  the  properties  of  the  corporation  and  for  legitimate 
and  necessary  purposes ; 


744  FOBMS   AND   PKECEDENTS. 

The  secretary  thereupon  read  the  resolution  of  the  board  of 

diiectors  adopted  at  the  meeting  of  the  board  held  on 

calling  such  meeting  of  stockholders,  which  resolution 

is  hereinbefore  set  forth ;  and  also  read  the  notice  of  the 
meeting,  which  notice  is  hereinabove  set  forth  ; 

It  having  been  shown  that  the  publication  and  service  of  the 
notice  of  the  meeting  had  been  made  in  the  manner  and  in  all 
respects  as  required  by  law,  the  stockholders  thereupon  pro- 
ceeded to  consider  said  pi'oposition,   and,   after  discussing  and 

considering  the  same ,  a  stockholder 

of  the  corporation,  offered  the  following  resolutions,  and  moved 
their  adoption  : 

Whereas,  Heretofore,  to  wit :  on  the  ....  day  of 

A.  D the  board  of  directors  of  the 

a  corporation,   by  resolution  duly  passed 

and  adopted,  by  the  unanimous  vote  of  said  board,  all  of  the 
directors    being    present,    ordered    and    called    a    meeting    of    the 

stockholders  of  the  corporation  to  be  held  on  this   

day  of A.  D at  the  hour  of  ....  o'clock  .  .  m. 

of  this  day,  at  the  offlce  of  the  corporation,  room   

in  the   State  of  California 

(that  being  the  principal  place  of  business  and  the  office  of  the 
corporation,  and  the  building  where  the  board  of  directors  usually 
meet),  for  the  object  and  purpose  of  then  and  there  considering 
and  acting  upon  a  proposition  to  create  a  bonded  indebtedness  of 

the  corporation  to  the  amount  of    

dollars,  to  the  end  and  for  the  purpose  of  providing  moneys  to 
pay  the  existing  indebtedness  of  the  corporation  and  acquiring 
property  to  be  used  in  the  business  of  the  corporation,  and  in 
extending  the  business  and  developing  the  properties  of  the  cor- 
poration, and  for  legitimate  and  necessary  purposes,  which 
bonded  indebtedness  shall  be  secured  by  a  mortgage  or  deed  of 
trust  covering  all  of  the  property,  both  real  and  personal,  now 
owned  by  the  corporation,  and  which  it  may  hereafter  acquire  ; 
and 

Whereas,  In  pursuance  thereof,  a  notice  of  the  time  and 
place  of  said  meeting,  specifying  the  object  of  said  meeting  and 
the  amount  of  the  bonded   indebtedness  which  it  is  proposed  to 

create,  has  been  published  in a  newspaper 

printed  and  published  daily  in   State 

of  California,  and  designated  therefor  in  said  resolution  of  the 
board  of  directors  ordering  and  calling  said  meeting,  once  a 
week  for  at  least  sixty  (60)  days  prior  to  the  date  of  said  meet- 
ing, and,  in  addition  to  said  notice  by  publication,  the  secretary 
of  the  corporation  did  address  a  like  notice  to  each  of  the  stock- 


CREATION   OF   BONDED    INDEBTEDNESS.  745 

holders  of  the  corporation  at  his  place  of  residence,  which  notices, 
so   addressed,    were   mailed,    in   the   United    States   post   office   at 

,  California,  with  the  United  States  postage 

tliereon  fully  prepaid,  to  each  of  the  stockholders  of  the  corpora- 
tion, more  than  tliirty  (30)  days  before  the  day  appointed  for 
such  meeting, — all  of  which  is  now  shown  to  have  been  done  as 
required  by  law  and  the  said  resolution  of  the  board  of  directors; 
now,  therefore,  be  it 

Resolved,  That  a  bonded  indebtedness  of  the    

to  tlie  amount  of 

dollars,  in  United  States  gold  coin,  be,  and  tlie  same  is,  hereby 
authorized  and  created,  for  the  purpose  of  providing  moneys  to 
pay  the  existing  indebtedness  of  tlie  corporation  and  acquiring 
property  to  be  used  in  the  business  of  the  corporation,  and  in 
extending  the  business  and  develojying  the  properties  of  the  cor- 
poration, and  for  legitimate  and  necessary  purposes;  and  be  it 
further 

Resolved,  That  the  bonded  indebtedness  hereby  autlioi-izod  and 

created  shall  be  repi-esented  by    Ixmds 

of  this  corporation,  of  the  denomination  of 

dollars  each,  bearing  date   nnd 

payable  on  the   day  of in  the  year ; 

that  said  bonds  shall  bear  interest  at  the  rate  of 

per  cent  per  annum,  from  their  date  until  paid,  payable  semi- 
annually, and  shall  have  appropriate  coupons  attached  for  each 
interest  payment ;  and  that  both  the  principal  and  interest  of 
said  bonds  shall  be  payable  in  United  States  gold  coin,  of  the 
present  standard  of  weight  and  fineness  ;  and  be  it  further 

Resolved,  That  the  board  of  directors,  for  the  purpose  of 
securing  the  payment  of  said  bonds,  and  tlae  interest  thereon,  be, 
and  it  is,  hereby  authorized,  empowered,  and  directed  to  prepare, 
execute,  acknowledge,  and  deliver,  or  to  cause  to  be  prepared, 
executed,    acknowledged,    and   delivered,    in   the   name   and   under 

the  seal  of  this  corporation,  to  the    

of   as  trustee,  a  mortgage  or  deed  of  trust 

covering  all  of  the  real  and  personal  property,  wheresoever 
situated,  now  owned  by  this  corporation,  and  which  it  may  here-' 
after  acquire  ;  that  each  of  said  bonds  shall  bear  a  certificate 
signed  by  the  trustee,  certifying  that  the  same  is  one  of  the  series 
of  bonds  referred  to  in  said  mortgage  or  deed  of  trust,  and  that 
such  mortgage  or  deed  of  trust  and  said  bonds  and  coupons  shall 
be  made  in  such  form  and  contain  such  provisions,  terms  and 
conditions,  in  all  respects,  as  the  board  of  directors  may  deem 
necessary,  proper  or  expedient  in  the  premises,  or  may  authorize 
to  be  executed  ;  and  be  it  further 

Resolved,  That  the  said  bonds  and  the  whole  thereof,  be  sold 
and  disposed  of  by  and  under  the  direction  of  the  board  of  direc- 
32— CL 


746  FORMS    AND    PBECEDENTS. 

tors,  in  such  lots  and  parcels,  and  in  such  manner,  and  upon  such 
terms  as  to  the  board  shall  seem  proper  ;  and  be  it  further 

Resolved,  That  the  board,  of  directors  be,  and  it  is  hereby 
expressly  authorized,  empowered,  and  directed  to  do  and  perform 
each  and  every  act,  deed  and  thing  whatsoever  which  to  the  said 
board  of  directors  shall  seem  requisite,  or  necessary,  or  proper,  to 
fully  carry  out  the  objects  and  intent  of  these  resolutions,  and  to 
fully  accomplish  tlae  purposes  and  objects  for  which  said  bonded 
indebtedness  shall  have  been  created  and  authorized. 

The    motion    to    adopt    said    resolutions    was    seconded    by 

,  a  stockholder  of  the  corporation. 

The  chairman  put  the  question  on  the  adoption  of  the  resolu- 
tions, and  the  stockholders  then  proceeded  to  vote  upon  a  call 
of  the  roll,  by  "ayes"  and  "noes,"  upon  said  motion  to  adopt 
the  resolutions,  and  the  following  named  stockholders,  owning 
and  holding  respectively  the  number  of  shares  of  the  subscribed 
capital  stock  of  said  corporation  set  opposite  their  several  and 
respective  names,  voted  in  favor  of  the  adoption  of  said  resolu- 
tions, that  is  to  say  : 


being  the  unanimous  vote  in  favor  of  the  adoption  of  said  reso- 
lutions by  all  the  stockholders  present  and  represented  by  proxy 
at  .said  meeting. 

Whereupon,  The  chairman  declared  that  the  motion  to  adopt 
said  resolutions  had  been  unanimously  carried,  and  that  said 
resolutions  had  been  passed  and  adopted  by  the  vote  of  all 
stockholders  present  and  represented  by  proxy  at  said  meeting, 

namely,  by  stockholders  representing shares  of  the 

subscribed  capital  stock  of  the  corporation  ;  all  of  which  appears 
of  record  in  the  minutes  of  said  meeting  of  the  board  of  directors 
of  said  corporation,  and  in  the  minutes  of  the  meeting  of  the 
stockholders  thereof,  as  recorded  and  preserved  in  its  record 
book  ;  and  we  do  further  certify  and  declare  that  by  the  proceed- 
ings aforesaid  a  bonded  indebtedness  of , 

a  corporation,  has  been  created,  and  authorized  to  be  created,  to 

the  amount  in  the  aggregate  of 

dollars.  United  States  gold  coin ;  that  the  amount  of  stock  rep- 
resented at  said  stockholders'  meeting  was shares 

of  the  par  value  of dollars  each,  aggregating 

dollars  of  par  value ;  that 

the  vote  by  which  said  bonded  indebtedness  was  created,  accom- 
plished, and  authorized,  was  a  vote  in  favor  thereof  by  stock- 


CREATION   OF   BONDED    INDEBTEDNESS. 


747 


holders  representing shares  of  the  subscribed 

capital  stock  of  the  corporation,  which  is  more  than  two  thirds 
of  the  subscribed  capital  stock  of  said  corporation. 

In  Witness  Whereof,  We  have  hereunto  set  our  hands 
and  caused  the  corporate  seal  of  said  corporation 

to  be  hereunto  affixed   this day  of 

,  A.  D 

Chairman    of    said    meeting    of    stockholders    of 

,   and   president  of 

said  corporation. 


[corporate 

SEAL.] 


Secretary    of    said    meeting    of    stockholders    of 

,   and  secretary 

of  said  corporation. 


Directors. 

State  of  California,  [  ^ 

County  of \ 

On  this day  of ,  A.  D ,  before  me, 

,  a  notary  public  in  and  for  the  said 

county  of ,  State  of  California,  residing 

tlierein,    duly    commissioned    and    sworn,    personally    appeared 

,  known  to  me  to  be  the  president  of 

a  corporation  described  in  the 

within  and  annexed  instrument,  and  the  chairman  of  the  meet- 
ing of  stockholders  of  said  corporation,  whose  name  is  subscribed 

to  said  instrument  as  such  chairman,  and 

known  to  me  to  be  the  secretary  of  said , 

and  the  secretary  of  said  meeting  of  said  stockholders  of  said 
company,  whose  name  is  subscribed  to  said  instrument  as  such 
secretary,  and  they  sevei-ally  acknowledged  to  me  that  they 
executed  said  instrument  as  such  chairman  and  secretary  respec- 
tively of  said  meeting  of  stockholders  of  said  corporation,  and  as 
president  and  secretary  respectively  of  said  corporation  ;  and  on 
the  same  day  personally  appeared  before  me, 


748  FORMS   AND   PRECEDENTS. 

known  to  me  to  be  the  directors  of  said , 

whose  names  are  subscribed  to  said  instrument  as  such  directors, 
and  they  severally  acknowledsed  fo  mo  that  they  executed  said 

iiisl  rnnieiit  ns  directors  of  said 

//(    Witness  Whereof,  I  have  hereunto  set  my  hand  and 
affixed  my  official  seal  at  my  office  in  the  county 

of ,   State  of  California,  the 

[seal.]       day  and  year  in  this  certificate  last  above  written. 

Notary    I'nblic    in    and    for    the    county    of 
,  State  of  California. 

EXHIBIT  "A." 

,State  of  California,  ) 

County  of j 

of  the  said  county  of ,  being 

duly  sworn,  deposes  and  says,  that  he  is  a  citizen  of  the  United 
States ;  that  he  is  and  was  at  all  times  hereinafter  mentioned, 
over  twenty-one  years  of  age  ;  and  is  competent  to  be  a  witness 
on  the  hearing  of  the  matters  mentioned  in  the  annexed  notice  ; 
that  he  has  no  interest  whatsoever  in  the  matters  mentioned 
therein  ;  and  that  he  is  and  was  during  all  the  time  embraced  in 
the   period   of   the   publication   herein   mentioned,   the   principal 

clerk  of  the  printers  and  publishers  of ,  a 

newspaper  printed  and  published  daily  in  said , 

and  has  charge  of  all  the  advertisements  in  said  newspaper ;  and 
that    the 

of  which  the  following  is  a  printed  copy  [here  insert  printed 
copy  of  newspaper  notice]  has  been  published 

in    the    above-named    newspaper,    commencing    (first   insertion) 

, ,  and  ending   (last  insertion) , 

,   (both  days  inclusive),  and  further  sayeth  not. 

Subscribed    and    sworn    to  > 
before  me,  this.  . .  .day  of .  . .  . 
A.  D 


Notary  Public  in  and  for 

[seal.]    the   county   of , 

State  of  California. 


CREATION   OF   BONDED    INDEBTEDNESS.  740 

EXHIBIT  "B." 

State  ov  California,  j 

County  of f 

,  being  duly  sworn,  deposes  and 

says  :  That  he  is,  and  was  at  all   the  times  herein   mentioned, 

the  secretary  of ,  a  corporation 

created,  organized  and  existing  under  the  laws  of  the  State  of 
California,  and  having  its  office  and  principal  place  of  business 

in State  of  California  ;  that 

on  the day  of ,   ,  he  addressed  a  true 

copy   of   the   notice   which   is   hereto   affixed   and   made   a   part 

hereof  to  each  one  of  the  stockholders  of 

whose  names  appeared  on  the  company's  books  as  stockholders 

from  and  including  the day  of , , 

to  and  including  the  said day  of ,   ,  at 

the  respective  addresses  of  said  stockholders  at  their  respective 

places  of  residence,  and  on  said day  of 

,  deposited  the  same  in  the  United  States  post  office  at 

,  in  said  state,  with  the 

postage  thereon  fully  prepaid ;  that  each  of  said  notices  was 
enclosed  in  a  separate  envelope,  sealed,  with  the  United  States 
postage  fully  prepaid  thereon,  and  the  said  respective  places  of 
residence  and  respective  addresses  of  said  stockholders  appeared 
at  said  time  upon  the  company's  books  and  were  known  to 
affiant. 

Subscribed    and    sworn    to  \ 

before  me,  this.  . .  .day  of ,  J 

A.  D f 


Notary  Public  in  and  for  I 

[seal.]    the   county   of ,j 

State    of    California.       ' 
[Indorsed.]      Filed   in    the   office   of   the   county   clerk   of   the 

county  of ,  State  of  California,  this 

day  of A.  D 

,  County  Clerk. 

By ,  Deputy  Clerk. 


750  forms  anu  precedents. 

State  of  California, 

County  of 

I, ,  county  clerk  of  the  county 

of    ,    State   of   California,    hereby   certify   the 

foregoing  to  be  a  full,  true  and  correct  copy  of  the  original  cer- 
tificate as  to  creation  of  bonded  indebtedness  of 

filed  in  my  oflice  on  the day  of ,  A.  D 

Attent  my  hand  and  my  official  seal  this day  of 

[SEAL.]  ,  A.   D 

,  County  Clerk. 

By ,  Deputy  Clerk. 


CERTIFICATE  OF  INCREASE  OF  CAPITAL  STOCK. 

A  special  meeting  of  the  stockholders  of  the 

,  a  corporation  organized  and  existing  under  the 

laws  of  the  State  of  California,  was  held  at  the  office  of  said 

corporation,  at  room in  the 

State  of  California    (said 

being  the  principal  place  of  business  of 

said  corporation,  and  said  room  being  the  office  of  said  corpora- 
tion in  said and  the  room  where  its  board 

of  directors  usually  meets),  on ,  the 

day  of , ,  at o'clock  in  the , 

in  accordance  with  the  resolution  and  order  of  the  board  of 
directors  of  said  corpoi'ation,  calling  said  meeting,  and  the 
notices  thereof  given,  addressed  and  mailed  as  hereinafter  set 
forth. 

On  motion  duly  made,  seconded,  and  carried, 

was  elected  president  of  said 

meeting  and  on  like  motion,  duly  made,  seconded,  and  carried, 

' was    elected 

secretary  of  said  meeting. 

The   entire   capital    stock    of   said   corporation    was,    on    said 

day  of ,    ,   

dollars,  divided  into shares  of dollars 

each,  and  the  total  number  of  subscribed  shares  of  said  corpora- 
tion was  on  said  day,  and  now  is, shares. 

There  Avcre  present,  in  person,  or  by  proxy,  at  said  meeting  the 
shareholders  owning  and   holding subscribed 


INCREASE   OF   CAPITAL   STOCK.  751 

capital  stock  of  said  corporation.  On  motion  duly  made,  sec- 
onded, and  carried,  the  chairman  caused  the  secretary  to  read 
the  resolution  of  the  board  of  directors  calling  said  meeting  of 
stockholders,  which  said  resolution  is  in  words  and  figures  fol- 
lowing : 

Be  it  resolved  and  ordered  that  a  meeting  of  the  stockholder.s 

of  the ,  a  corporation,  be 

called  for,  and  lield  on ,  the day  of , 

at  ....  o'clock  in  tlie of  that  day,  at  the  office  of 

said  corporation  at  room  No 

in  the   ,   State  of  California   ( said 

place  of  meeting  being  at  the  principal  place  of  business  of  said 
corporation  and  at  the  building  where  the  board  of  directors 
usually  meet),  for  the  purpose  of  considering  and  acting  upon  a 
proposition  to  increase  the  capital  stock  of  said  corporation  from 

dollars  divided  into   

shares  of  the  par  value  of dollars  each,  to   

dollars  divided  into   shares  of  the  par  value  of 

dollars  each  ; 

That  notice  of  said  meeting  be  joublisiied  in 

a  newspaper  published  in  said 

once  a  week  for  at  least  sixty  days. 

That  tlie  secretary  of  said  corporation  is  uereby  directed  to 
address  and  mail  a  notice  of  said  meeting  to  each  of  the  stock- 
holders of  said  corporation,  in  the  manner  prescribed  by  section 
359  of  the  Civil  Code  of  said  State  of  California,  at  least  thirty 
days  before  said  day  appointed  for  said  meeting  and  that  said 
notice  be  in  the  following  form: 
"NOTICE  TO  STOCKHOLDERS  OP    

"Notice  is  hereby  given  that,  in  pursuance  of  a  resolution  and 

order  of  tlie  board  of  directors  of  the   , 

a  corporation  organized  and  existing  under  the  laws  of  the  State 
of  California,  unanimously  adopted  at  a  regular  meeting  of  said 

board,  duly  held  on  the day  of , 

at  the  office  of  said  corporation,  in    , 

in  said  State  of  California,  a  meeting  of  the  stockholders  of 
said  corporation  is  hereby  called  for  and  will  be  held  at  the  office 

of  said  corporation,  at  room , 

in  said   (said  place  of  meeting  being  at 

the   principal    place   of  business  of   said   corporation   and   at   the 

building  where  the  board  of  directors  usually  meet),  on 

the day  of ,  at   ...   o'clock 

in  the of  that  day,  for  the  purpose  of  considering 

and  acting  upon  the  proposition  to  increase  the  capital  stock  of 

said  corporation  from   dollars  divided  into 

shares  of  the  par  value  of dollars 


752  FORMS    AND   PRECEDENTS. 

each,  to dollars  divided  into 

shares  of  the  par  value  of dollars  each. 

"The  amount  to  which  it  is  proposed  to  increase  the  capital 
stock  is dollars. 

"By  order  of  the  board  of  directors. 

"Dated  


"Secretary   of    " 

The  by-laws  of  said  corporation  do  not  prescribe  any  news- 
paper in  which  notices  of  meeting  of  the  corporation  or  its  stock- 
holders or  directors  are  to  bo  published.  The  secretary  there- 
upon read  the  following  affidavits  of  himself  and , 

to  wit : 

AFFIDAVIT  OF   

State  of  California,  \ 

County  of [ 

,  being  duly  sworn,  deposes  and 

says  that  he  is  and  at  all  the  times  hereinafter  mentioned  was 
a  male  citizen  of  the  United  States  and  over  the  age  of  twenty- 
one  years;   that  he  is,  and  for  more  than  a  year  continuously 

last  past  has  been,  secretary  of 

a  corporation  organized  and  existing  under  and  l)y  virtue  of  the 

laws  of  the  State  of  California ;  that  on  the day  of 

,  he  addressed  to  each  of  the  stockholders  of 

said  corporation  whose  names  appear  on  the  books  of  said 
company  as  suSicieutly  addressed,  at  his  place  of  residence  (the 
place  of  residence  of  each  of  said  stockholders  then  and  now 
being  known  to  affiant)  a  notice  of  which  the  following  is  a 
true  copy.      [Here  insert  copy  of  newspaper  notice.]     And  that 

on  said day  of , ,  he  deposited  in  the 

United  States  post  office  in ,  county  of , 

State  of  California,  with  postage  fully  prepaid,  each  and  all  of 
said  notices  addressed  as  aforesaid ;  that  the  stockholders  to 
whom   said    notices    wore    addressed    and    mailed    as    aforesaid, 

were,  on  said day  of , ,  and  now  are, 

the  stockholders  of  said  corporation. 

Subscribed    and    sworn    to  \ 

before  me,  this ....  day  of ,  J 

A.  D f 


Notary  Public  in  and  for 

[seal.]     the    county    of , 

State   of   California. 


INCREASE   OF   CAPITAL   STOCK.  753 


AFFIDAVIT  OF 


State  of  California,  ( 

County  of   ) 

of   , 

having  been  first  duly  sworn,  deposes  and  says  :  That  he  is  a 
citizen  of  the  United  States  ;  that  he  is  and  at  all  the  times 
hereinafter  mentioned  was  over  twenty-one  years  of  age  and 
competent  to  be  a  witness  on  the  hearing  of  the  matters  men- 
tioned in  the  printed  notice  hereinafter  set  forth ;  that  he  has 
no  interest  whatsoever  in  the  same ;   that   he   is  the  principal 

clerk  of  the  printers  and  publishers  of 

a  newspaper  printed  and  published  daily  (Sundays  and  legal 
holidays  excepted)  in ,  State  of  Cali- 
fornia, and  has  charge  of  all  the  advertisements  and  notices 
published  in  said  newspaper.    That  an  advertisement  of  a  notice 

to  stockholders  of of  which 

the  following  is  a  printed  copy  [here  insert  printed  copy  of 
notice]  was  published  in  the  above-named  newspaper  (Sundays 
and  legal  holidays  excepted)  for  a  period  of  once  a  week  for  at 
least  sixty  days  and  once  a  week  for  two  months,  on  the  follow- 
ing dates,  to  wit : 

Subscribed    and    sworn     to 

before  me,  this.  . .  .day  of 

A.  D 

Notary  Public  in  and  for 

[seal.]    the  county  of  

State    of   California. 

Thereupon,  upon  motion  duly  made,  seconded  and  carried,  it 
was  by  the  meeting 

Resolved,  That  notice  of  this  meeting  has  been  given  in  accord- 
ance with  the  requirements  of  the  laws  of  the  State  of  California 
and  that  more  than  two  thirds  of  all  the  capital  stock  of  this' cor- 
poration is  at  this  meeting  represented  and  the  owners  thereof 
present,  and  that  this  meeting  is  competent  to  proceed  with  the 
transaction  of  the  business  for  which  it  has  been  called. 

Thereupon,  a  motion  was  duly  made,  and  seconded  tiiut  I  he 
following  resolution  be  adopted,  to  wit: 

Resolved  by  the  stockholders  of   

repre.senting  more  than  two  thirds  of  all  the  subscribed  capital 
stock  of  said  corporation,  in  meeting  duly  assembled  and  called 


754  FORMS   AND  PRECEDENTS. 

by  the  board  of  directors  of  said  corporation,  that  said  corpora- 
tion    increase  its  capital 

stock  from    dollars  divided  into    

shares  of  the  par  value  of dollars  each,  to 

dollars  divided  into   shares 

of  the  par  value  of dollars  each,  and  that  the  said 

capital  stock  of dollars  be  and  the  same 

is  hereby  increased  to    dollars 

divided  into shares  of  the  par  value  of 

dollars  each  ;  that  the  cnairman  and  secretary 

of  this  stockholders'  meeting  and  a  majority  of  the  directors  of 
said  corporation  sign  the  certificate  required  by  law,  and  that 
said  secretary  file  the  same  in  the  office  of  the  county  clerk  of 

the  county  of    State  of  California,  and  file  a 

certified  copy  thereof  in  the  office  of  the  secretary  of  state  of 
said  state. 

Upon  being  put  to  vote,  said  motiou  was  unanimously  carried, 

and  said  resolution  adopted,  by  a  vote  of the  stockholders 

of  said  corporation,  said  stockholdei's  owning  and  representing 

capital  stock.     The  chairman  thereupon 

declared  the  result  of  said  vote  as  above  stated  and  there  being 
no  further  business  to  be  transacted,  the  meeting,  on  motiou 
duly  made,  seconded  and  carried,  adjourned. 

,    Chairman. 

,   Secretary. 

We,  the  undersigned ,  chairman,  and 

,  secretary,  of  the  aforesaid  special 

meeting  of  the  stockholders  of  the , 

a  corporation  organized  and  existing  under  and  by  virtue  of  the 
laws  of  the  State  of  California,  and 

being board  of  directors  of  said  corporation, 

do  hereby  certify  tliat  all  the  foregoing  is  true  and  correct  and 
is  a  true  and  full  record  of  the  proceedings  had  and  business 
done  at  said  meeting  of  stockholders ;   and   we   further  certify 

that-  the  board  of  directors  of  said  corporation,  on  the 

day  of ,  at  a  regular  meeting  of  said  board 

at  which  a  majority  of  said  board  was  present,  unanimously 
passed  and  adopted  the  resolution  set  forth  in  the  foregoing 
proceedings  as  having  been  adopted  by  said  board  and  that,  in 
pursuance  of  said  resolution  apd  order  of  said  board  of  directors, 
notice  of  said  meeting  of  stockholders  (which  notice  is  here- 
iubefore  set  forth)  was  given  by  publication  once  a  week  for 
at   least  sixty   days,   in   a   newspaper   published   in    the   county 


INCREASE   OF   CAPITAL   STOCK.  755 

where  the  principal  place  of  business  of  said  corporation  is 
located,    in    the    manner    stated    in    the    foregoing    affidavit    of 

;  and  that  the  secretary  of  said 

corporation  also  addressed  a  copy  of  said  notice  to  each  of  its 
stockholders  at  his  known  place  of  residence,  at  least  thirty 
days  before  the  day  appointed  for  said  meeting  of  stockholders. 

in  the  manner  stated  in  the  foregoing  affidavit  of 

;  that  the  originals  of  said  affidavits  of 

,  and   

are  now  on  file  in  the  office  of  the  secretary  of  said  corporation  ; 
that  said  meeting  of  stockholders  was  held  at  the  time  and  place 
indicated  in  said  notice ;  that  said  place  of  meeting  was  at  the 
principal  place  of  business  of  said  corporation  and  at  the 
building  where  the  board  of  directors  usually  meet ;  that  at 
said   meeting   there   were   present   all    the   stockholders   of   snid 

corporation,  said  stockholders  owning  and  representing 

subscribed  capital  stock,  to  wit 

shares:  that  the  resolutions  set  out  in  the  foregoing  statement 
as   being   passed   and   adopted   at   said   meeting   of   stockholders 

were  duly  adopted  by  an  affirmative  vote  representing 

subscribed  capital  stock  of  said  corporation. 

to  wit :  shares ;  and  that  thereupon  and 

thereby  the  capital  stock  of  said  corporation  was  increased  from 

dollars  divided  into shares 

or  the  par  value  of dollars  each  to 

dollars  divided  into   shares  of  the  par  value  of 

dollars  each. 

fii   Witness  Whereof,  we  have  hereunto  set  our  hands 
and  seals  this day  of , 


[coiiPOUATE  Chairman   of  said  meeting  of  stockholders 

SEAL.]  [and  President  of  said  corporation]. 

Secretary   of  'said    meeting   of   stockholders 
.  [and  of  said  corporation]. 


Being  and  constituting  a  majority  of  the 
Board  of  Directors  of  said  corporation. 


75g  forms  and  peecedents. 

State  of  California, 

ss. 
County  of 

On  this day  of ,  A.  D ,  before 

me, ,  a  notary  public  in  and  for  the 

county  of ,  State  of  California,  residing 

therein,    duly    commissioned    and    sworn,    personally    appeared 

known  to  me  to  be  the  directors  of  the 

the  corporation   mentioned   in   the   foregoing  certificate  of  pro- 
ceedings, and  to  be  and  constitute   board  of 

directors  of  said ;  and  they 

each  duly  and  severally  acknowledged  to  me  that  they  executed 
the  foregoing  instrument  as  such  directors  respectively. 

In  Witness  Whereof,  I  have  hereunto  set  my  hand  and 
afSxod  my  official  seal  the  day  and  year  in  this 
[seal.]      certificate  last  above  written. 


Notary    Public    in    and   for   the   county    of 
,  State  of  California. 

State  of  California,  \_ 

County  of \ 

On  this day  of ,  A.  D ,  before  me, 

,  a  notary  public  in  and  for  the 

county  of ,  State  of  California,  residing  therein, 

duly  commissioned  and  sworn,  personally  appeared 

,  known  to  me  to  be  the  president  of 

the    corporation    mentioned    in    the    foregoing    certificate,    and 

,  known  to  me  to  be  the  secretary  of 

said  corporation,  and  they  each  duly  and  severally  acknowledged 
to  me  that  they  have  read  the  contents  of  the  said  foregoing 
certificate  and  that  the  same  are  true  of  their  own  knowledge. 


President 


Secretary. 
In  Witness  Whereof,  I  have  hereunto  set  my  hand  and 
affixed  my   official   seal    the  day   and  year  in    this 
[seal.]       certificate  last  above  written. 

Notary   Public  in   and   for  the  county  of 
,  State  of  California. 


INCREASE   OF   CAPITAL   STOCK.  757 

[Indorsed.]     Filed   in   the   office   of   the  county   clerk   of   the 

county  of State  of  California,  this 

day  of ,  A.  D 

,  County  Clerk. 

By  ,  Deputy  Clerk. 

State  of  California, 

County  of 

I,    ,   county   clerk  of   the 

county  of ,  State  of  California,  hereby  certify 

the  foregoing  to  be  a  full,  true  and  correct  copy  of  the  original 


filed  in  my  office  on  the day  of A.  D. .  .  . 

Attest  my  hand  and  my  official  seal  this 

[SEAL.]        day  of ,  A.  D 

,  County  Clerk. 

By   ,  Deputy  Clerk. 


CERTIFICATE  FOR   INCREASING  OR  DECREASING  THE 
NUMBER  OF  DIRECTORS. 

State  of  California,  ) 

}  ss. 
County  of ) 

Know  all  Men  hy  These  Presents,  that  I,   , 

the  secretary  of ,  a  corporation, 

formed  and  existing  under  the  laws  of   

California,  do  hereby  certify  : 

That  a  regular  meeting  of  the  stockholders  of  said  corporation 

was  held  at  its  office  at ,  in 

in  said  county,  at o'clock  ...  m.  on  the day  of 

;  that   the  stockholders  of 

said  corporation  were  then  and   there  present  at  said  meeting ; 

that  at  said  meeting  a  resolution the  number  of 

the  directors  of  said  corporation  from   to   

was  regularly  proposed,  voted  upon   iind  adopted  hy  the  unani- 


758  FOBMS    AND   PRECEDENTS. 

moiis  vote  of of  said  stockholders ;  and  that  the 

following  is  a  true  copy  of  said  resolution,  to  wit : 

"Resolved,  That  the  number  of  directors  of 

be  and  is  hereby ■ .  .  .  .  from to , 

to  take  effect  on  the day  of ,  A.  D " 

In  Witness  Whereof,  I  have  hereunto  set  my  hand  and 

[corporate     affixed    hereunto   the   corporate   seal    of   said   cor- 

SEAL.]         poration  this day  of ,  A.  D. .  .  . . . 


Secretary  of 


[Indorsed.]      Filed    in    the   office   of   the   county   clerk    of    the 

county  of ,  State  of  California,  this 

day  of   A.  D 

,  County  Clerk. 

By   ,  Deputy  Clerk. 

State  of  California,  [ 

County  of \ 

I,   ,  county  clerk  of  the 

county  of  State  of  California,  hereby  certify 

the  foregoing  to  he  a  full,  true  and  correct  copy  of  the  original 
certificate  as  to   

filed  in  my  office  on  the day  of ,  A.  D 

Attest  my  hand  and  my  official  seal  this day  of 

[seal.]       ,  A.  L) 

County  Clerk. 

By ,  Deputy  Clerk. 


REMOVAL  OF  PBINCIPAT,  PLACE  OF   BUSINESS.  759 


CERTIFICATE  OF  REMOVAL  OF  PRINCIPAL  PLACE  OF 
BUSINESS. 

Whereas,  The  owners  and  holders  of  more  than  two  thirds 

of  the  issued  capital  stock  of  this  corporation,  the 

(organized  and  existing  under  the  laws  of 

the  State  of  California  and  having  its  principal  place  of  busi- 
ness at  rooms ,  in  the  city  of ) , 

to  wit,  the  owners  and  holders  of issued  capital 

stock  of  this  corporation,  have  consented  in  writing  and  author- 
ized, empowered,  and  directed  this  board  of  directors  and  officers 
of  this  corporation  to  change  and  remove  the  principal  place  of 
business  of  this  corporation   from   its  present   location,   to  wit, 

said  city  of ,  to  the 

city  of in  said   State  of  California, 

— which  consent  was  filed  and 

is  now  on  file  in  the  office  of  this  company  ;  now  therefore  be  it 

Resolved,  That  the  principal  place  of  business  of  this  corpo- 
ration, to  wit,   ,  in 

State   of   California,   be  and   the   same   is   hereby   changed   and 

removed  therefrom  to ,  in  said  State  of 

California,   such  removal  and  change 

to  take  effect  on  the day  of ,  A.  D ; 

And  that  the  secretary  of  this  corporation 

be  and  he  is  hereby  authorized,  empowered,  and  directed  to 
cause  a  notice  of  the  intended  removal  and  change  of  the  prin- 
cipal place  of  business  of  this  corporation  to  be  published  at 
least  once  a  week  for  three  successive  weeks  in  some  newspaper 

published  in  the  county  of said  state, 

(said  county  being  the  county  wherein  the  present  principal 
place  of  business  of  this  corporation  is  situated)  ; 

And  that  whenever  such  change  is  made  said  secretary  is 
hereby  directed  to  file  in  each  office  where  the  original  articles 
of  incorporation  are  or  any  copy  thereof  is  required  to  be  filed, 
a  copy  of  this  resolution,  together  with  a  copy  of  the  affidavit 
showing  the  publication  above  directed  to  be  made,  all  duly 
certified  by  the  president  and  secretary  of  this  corporation,  with 
the  corporate  seal  affixed  ; 

And  that  the  president  and  secretary  of  this  corporation  be 


760  FORMS    AND   PEECEDENTS. 

and  they  are  hereby  authorized,  empowered  aud  directed,  acting 
jointly  or  either  acting  alone,  to  do  any  and  all  other  acts  or 
things  requisite  or  necessary  in  their  judgment  to  fully  and  com- 
pletely effect  the  change  and  removal  of  the  principal  place  of 
business  of  this  corporation  as  above  provided,  in  accordance 
with  the  laws  of  the  State  of  California  relating  thereto. 

State  of  California,  | 

County  of \ 

The  undersigned,    ,  the  president,  and 

,   the  secretary,  respectively  of 

(a   corporation   duly   organized 

and  existing  under  the  laws  of  the  State  of  California),  do 
hereby  certify  and  declare  : 

That  the  annexed  and  foregoing  resolution  removing  and 
changing  the  principal  place  of  business  of  said  corporation  from 

,  in  said  state,  at  rooms 

therein,    to ,    in   said 

state,  at  No street  therein,  is  a  full,  true, 

and  correct  copy  of  a  resolution  duly  passed  and  adopted  at  a 

meeting  of  the  board  of  directors  of  said 

company,    held    at    its    said    place    of   business    in    the   city    of 

,   on the day   of , 

,  of  which  said  meeting  all  directors  of  said  corporation 

had  due  and  legal  notice  and  a  majority  and  quorum  of  said 
board  were  present  at  said  meeting  and  unanimously  voted  in 
favor  of  the  adoption  of  said  resolution  ;  and 

That  the  annexed  and  foregoing  affidavit,  showing  publication 
of  the  notice  of  the  removal  and  change  of  the  principal  place 
of  business  of  said  corporation  is  a  full,  true,  and  correct  copy 
of  the  affidavit  showing  such  publication  as  therein  set  forth 
and  that  the  original  thereof  is  on  file  in  the  office  of  said  com- 
pany. 

In  Witness  Whereof,  We,  the  president  and  secretary 

respectively  of  said  company,  have  hereunto  signed 

[corporate     our  names  as  such  and  affixed  the  corporate  seal 

[seat,.]        of  snid  company  this day  of ,  A.  D. 


,    President. 
. ,  Secretary. 


removal  of  principal  place  of  business.  761 

State  of  California,  |  ^^^^ 

County  of \ 

On  this,  the day  of ,  A.  D ,  before  me, 

,  a  notary  public  in  and  for  said 

county  of ,  State  of  California,  residing 

therein,    duly    commissioned    and    sworn,    personally    appeared 

,  known  to  me  to  be  the  president,  and 

,  known  to  me  to  be  the  secretary 

of  the ,  the  corporation  described 

in  the  within  instrument,  and  they  severally  acknowledge  that 
they  executed  such  instrument  as  president  and  secretary  respec- 
tively of  said  company. 

In  Witness  Who-eof,  I  have  hereunto  set  my  hand  and 
affixed  my  official  seal,  at  my  office  in  the  county 

[SEAL.]        of ,  the  day  and  year  in  this 

certificate  last  above  written. 


Notary    Public    in    and    for    the    county    of 
,    State   of  California. 


AFFIDAVIT  OF  PUBLICATION  OF  NOTICE. 

In  the  matter  of  the  change  of  the  principal  place  of  business  of 
the from to ,   Cal. 

State  of  California,  \ 

County  of ) 

,  of  the  said  county,  being  duly 

sworn,  deposes  and  says :  That  he  is  and  at  all  times  herein 
mentioned  was  a  citizen  of  the  United  States,  over  twenty-one 
years  of  age  ;  that  he  is  not  a  party  to,  nor  interested  in  the 
matter  mentioned  herein  ;  and  that  he  is  the  principal  clerk  of 

the  printer  and  publisher  of  the , 

a  newspaper  of  general  circulation  printed  and  published  weekly 
in  said  county,  and  that  the  notice,  of  which  the  annexed  is  a 
printed  copy,  has  been  published  once  a  week  for  four  successive 

weeks  in  the  above  named  newspaper,  commencing  on  the 

day  of ,    ,  and  ending  on  the day 


762  FOBMS   AND  PBECEDENTS. 

of ,   (both  days  inclusive) ,  and  as 

often  as  said  newspaper  was  regularly  issued  during  said  time, 
to    wit :   

Subscribed    and    sworn    to  \ 

before  me,   this day  of  I 

,  A.  D [ 

^  (signed) 

Notary  Public  in  and  for  ( 

[seal.]    the  county  of ,  j 

State  of  California.         ' 


NOTICE. 

Pursuant  to  the  written  consent  of  the  holders  of  more  than 

two  thirds  of  tlie  issued  capital  stocli  of   

(a  corporation  duly  organized  and  existing  under  the  laws  of 
the   State   of   California),   which   consent   has  been   duly   filed   in 

the  ohice  of  said  corporation  in  the  county  of 

said  state,  on  the   ....  day  of  ,    , 

and  pursuant   to  a  resolution   of   the  board   of  directors   of   said 

corporation,  which  resolution  was  duly  passed  at   

meeting  of  said  board  of  directors  duly  called  and  held  at   the 

said  office  of  said  corporation,  on  the day  of 

at  which  meeting  more  than  a  quorum  of  the  directors 

of  said  corporation  was  present 

Notice  is  hereby  given  that  the  principal  place  of  business  of 

said  corporation  will,  on  the day  of , , 

be  changed  and  removed  from  the  county  of , 

State  of  California,  to  the  county  of   in 

said  state,  at   therein,  after  which  date 

the   principal    place   of  business   of   said   corporation   will   be   the 

said    at    therein. 

This  notice  is  published  by  order  of  the  board  of  directors  of 

said    

Dated,  ,  Cal.,  ,  A.  D 

[COBPOBATE  

SEAL.]  Secretary  of    


OBDEE   FOK   CHANGE   OF    NAME.  763 


ORDER  FOR  CHANGE  OF  NAME. 

In  the  Superior  Coukt  of  the  State  of  California,  in  and 
FOR  THE  County  of 

lu  tbo  Matter  of  the  Petition  of   , 

a  corporation,  for  change  of  name. 
This  matter  having  come  on  regularly  for  hearing 

in  open  court  this  day,  the  petitioner  herein  appearing  by  its 

attorney and  no  remonstrance 

appearing,  and  both  oral  and  documentary  evidence  being  intro- 
duced and  it  appearing  therefrom  to  the  court  that  the  petition 
in  this  matter  was  regularly  filed  according  to  law  and  that  the 
publication  of  said  petition  and  order  was  duly  made  according 
to  law,  and  that  the  certificate  of  the  secretary  of  state  was 
duly  obtained  and  filed  herein  according  to  law,  and  that  the 
matters  set  forth  in  said  petition  are  in  fact  true  ;  and  it  further 
appearing  to  the  court  that  there  is  good  reason  for  the  change 
of  name  prayed  for  as  set  forth  in  the  petition  and  that  there 
are  no  valid  objections  to  such  change  of  name,  and  the  court 
having  considered  the  petition  herein  and  the  testimony  both 
oral  and  documentary  ;  now  therefore. 

It    is    Ordered,    Adjudged    and    Decreed    that    the    name    of 

,  a  corporation  organized  and 

existing  under  the  laws  of  the  State  of  California,  be  and  the 
same  is  hereby  changed  to  the  name  of  the   

Dated  this day  of A.  D 


[seal.]  Judge  of  the  Superior  Court. 

[Ivdorsed.]     Filed   in   the   office   of   the  county   clerk   of   the 

county  of State  of  California,  this day 

of  ..". ,  A.  D 

,  County  Clerk. 

By ,  Deputy  Clerk. 

State  of  California, 

County  of  

I county  clerk  and  ex  officio 

clerk  of  the  superior  court,  do  hereby  certify  the  foregoing  to 


764  FORMS    AND   PKECEDENTS. 

be  a  full,  true  and  correct  copy  of  the  original  order  for  change 

of    nanae    of 

on  file  in  my  office  and  that  I  have  carefully  compared  the  same 
with  the  original. 

In  Wittiess  Whereof,  I  have  hereunto  set  my  hand  and 

affixed  the  seal  of  the  superior  court,  this 

[seal.]       day  of ,  A.  D 

,  County  Clerk. 

By ,  Deputy  Clerk. 


ORDER  FOR  VOLUNTARY  DISSOLUTION. 

In   the   Superior  Court  of  the   State  of  California,   in 
AND  for  the  County  of 

In  the  Matter  of  the  Application  of  ] 

,    a   corporation,    I  No 

for  a  decree  of  voluntary  dissolution.  ] 

The    verified    application    of    the    above-named    corporation, 

,  praying  for  a  decree  of 

voluntary  dissolution,  coming  on  regularly  this day  of 

,  A.  D ,  for  hearing  and  determination,  and 

the  proofs  and  evidence,  both  documentary  and  oral,  having 
been  made  and  introduced  and  duly  considered  by  the  court, 
and  it  satisfactorily  appearing  to  the  court  therefrom  and  it 
having  been  duly  shovi^n  and  proven  thereby,  and  the  court 
finding : 

That  the  said  applicant,    ,   is, 

and  was  at   the   time  of  filing  said  application,   and  since   the 

day  of ,  A.  D ,  continuously  has 

been  a  corporation  duly  incorporated  and  existing  under  and  by 
virtue  of  the  laws  of  the  State  of  California ;  with  its  principal 

place  of  business  located  in  the  county  of  , 

State  of  California ; 

That  the  said  application,  duly  signed  and  verified  as  pre- 
scribed by  law,  and  being  in  all  respects  in  conformity  with 
Title  VI  of  Part  III  of  the  Code  of  Civil  Procedure  of  the 
said  State  of  California,  was  ordered  filed  by  this  court,  and 


ORDER   FOR   VOLUNTARY   DISSOLUTION.  765 

notice  thereof  duly  directed  to  be  given  by  publication  for  thirty 
(30)  days;  that  in  accordance  with  the  order  of  this  court  in 
that  regard  and  pursuant  to  law  the  clerk  of  this  said  court  has 
given  thirty  (30)  days'  notice  of  said  application  for  dissolu- 
tion by  publication  in  the 

a  newspaper  of  general  circulation  printed  and  published  in  the 

,  State  of  California,  the 

last  publication  of  said  notice  occurring  on  the day  of 

,  A.  D and  that  notice  of  said  application 

has  been  given  for  the  period,  in  the  manner  and  in  all  respects 
as  required  by  law  and  the  order  of  this  court ;  and  that  no 
objection  to  said  application  has  been  made  or  filed  herein  or 
otherwise ; 

That  eaph  and  all  of  the  allegations  and  statements  in  said 

application  of  said   ,  for 

voluntary  dissolution,  are  true  as  alleged,  and  have  been  shown 
to  be  true  in  all  respects  ; 

That  at  a  meeting  of  the  stockholders  of  said  applicant,  called 
for  that  purpose,  the  dissolution  of  said  corporation  was  resolved 
upon  by  a  vote  of  more  than  two  thirds  of  the  stockholders,  and 
of  the  holders  of  more  than  two  thirds  of  the  subscribed  capital 
stock  of  said  corporation  ; 

That  all  claims  and  demands  against  the  said  corporation  ap- 
plicant have  been  fully  satisfied  and  discharged  ; 

'Noio,  therefore,  it  is  hereby  adjudged,  declared,  and  decreed: 

That  said  corporation  applicant,  said 

be  and  the  same  is  hereby  dissolved  and  declared  dissolved  ; 

It  is  further  declared  and  adjudged:  That  the  board  of 
directors  of  said  applicant  are  entitled  to  and  are  hereby  author- 
ized and  empowered  to  settle  all  the  affairs  of  said  corporation 
and  to  distribute  and  convey  all  the  property  and  assets  of  said 
corporation  to  its  stockholders  in  proportion  to  their  respective 
interests. 

Done  in  open  court,  this day  of ,  A.  D 

[seal,]  

Judge. 
[Indorsed.]     Filed   ,  A.  D 

,  County  Clerk. 

By ,  Deputy  Clerk. 


766         '  foems  and  precedents 

State  of  Califobnia, 

County  of \ 

I ,  couuty  clerk  of  the  county 

of  ,  State  of  California,  and  ex  officio  clerk 

of  the  superior  court  thereof,  hereby  certify  that  the  foregoing 
is  a  full,  true  and  correct  copy  of  the  original  decree  of  dissolu- 
tion of ,  a  corporation  in  the  above 

entitled  cause,  filed  in  my  office  on  the day  of , 

A.  D 

In  Witness  Whereof,  I  have  hereunto  set  my  hand  and 

seal  of  said  court,  this day  of , 

[seal.]       a.  D 

County  Clerk. 

By Deputy  Clerk. 


FEDERAL   CORPORATION    TAX   LAW.  7f>7 


FEDERAL  CORPORATION  TAX  LAW. 


An    act   to   provide   revenue,   equalize    duties,    and   encourage   the 
industries   of  the   United   States,    and   for   other   purposes. 

Approved  August  5,  1909. 

i^  ^  ^  ^  :U  ^  ^ 

Ed.  Note. — Only  such  portion  of  the  act  is  given  herewitli  as 
provides  for  an  income  tax  on  corporations. 

Corporation    tax — Who    must    pay — Amount   of    tax — Exemptions. 

Sec.  38.  That  every  corporation,  joint  stock  company  or 
association,  organized  for  profit  and  liaving  a  capital  stock  rep- 
resented by  shares,  and  every  insurance  company,  now  or  here- 
after organized  under  the  laws  of  the  United  States  or  of  any 
state  or  territory  of  the  United  States  or  under  the  acts  of  con- 
gress applicable  to  Alaska  or  the  District  of  Columbia,  or  now 
or  hereafter  organized  under  the  laws  of  any  foreign  country  and 
engaged  in  business  in  any  state  or  territory  of  the  United 
States  or  in  Alaska  or  in  the  District  of  Columbia,  shall  be 
subject  to  pay  annually  a  special  excise  tax  with  respect  to  the 
carrying  on  or  doing  business  by  such  corporation,  joint  stock 
company  or  association,  or  iu.surance  company,  equivalent  to  one 
per  centum  upon  the  entire  net  income  over  and  above  five  thou- 
sand dollars  received  by  it  from  all  sources  during  such  year, 
exclusive  of  amounts  received  by  it  as  dividends  upon  stock  of 
other  corporations,  joint  stock  companies  or  associations,  or 
insurance  companies,  subject  to  the  tax  hereby  imposed ;  or  if 
organized  under  the  laws  of  any  foreign  country,  upon  the 
amount  of  net  income  over  and  above  five  thousand  dollars 
received  Dy  it  from  btisiness  transacted  and  capital  invested 
within  the  United  States  and  its  territories,  Alaska,  and  the 
District  of  Columbia  during  such  year,  exclusive  of  amounts  so 
received  by  it  as  dividends  upon  stock  of  other  corporations, 
joint  stock  companies  or  associations,  or  insurance  companies, 
subject  to  the  tax  hereby  imposed. 

Provided,  however,  that  nothing  in  this  section  contained  shall 
apply  to  labor,  agricultural  or  horticultural  organizations,  or  to 
fraternal  beneficiary  societies,  orders,  or  associations  operating 
under  the  lodge  system,  and  providing  for  the  payment  of  life, 


768  FEDERAL  CORPORATION  TAX  LAW. 

sick,  accident,  and  other  benefits  to  the  members  of  such  societies, 
orders,  or  associations,  and  dependents  of  such  members,  nor  to 
domestic  building  and  loan  associations,  organized  and  operated 
exclusively  for  the  mutual  benefit  of  their  members,  nor  to  any 
(•(U'lioration  or  association  organized  and  operated  exclusively 
for  religious,  charitable,  or  educational  purpo.ses,  no  part  of  the 
net  income  of  which  inures  to  the  benefit  of  any  private  stock- 
holder or  individual. 

Net  income,  how  ascertained — Domestic  corporations — Foreign 
corporations. 

Hecoiid — Such  net  income  shall  be  ascertained  liy  deducting 
from  the  gross  amount  of  the  income  of  such  corporation,  joint 
stock  company  or  association,  or  insurance  company,  received 
within  the  year  from  all  sources  (first)  all  the  ordinary  and 
necessary  expenses  actually  paid  within  the  year  out  of  income 
in  the  maintenance  and  operation  of  its  business  and  properties, 
including  all  charges  such  as  rentals  or  franchise  payments, 
required  to  be  made  as  a  condition  to  the  continued  use  or  pos- 
session of  property;  (second)  all  losses  actually  sustained  within 
the  year  and  not  compensated  by  insurance  or  otherwise,  includ- 
ing a  reasonable  allowance  for  depreciation  of  property,  if  any, 
and  in  the  case  of  insurance  companies  the  sums  other  than  divi- 
dends, paid  within  the  year  on  policy  and  annuity  contracts  and 
the  net  addition,  if  any,  required  by  law  to  be  made  within  the 
year  to  reserve  funds;  (third)  interest  actually  paid  within  the 
year  on  its  bonded  or  other  indebtedness  to  an  amount  of  such 
bonded  and  other  indebtednes.s  not  exceeding  the  paid-up  capital 
stock  of  such  corporation,  joint  stock  company  or  association,  or 
insurance  company,  outstanding  at  the  close  of  the  year,  and  in 
the  case  of  a  bank,  banking  association  or  trust  company,  all 
interest  actually  paid  by  it  within  the  year  on  deposits  ;  (fourth) 
all  sums  paid  by  it  within  the  year  for  taxes  imposed  under  the 
authority  of  the  United  States  or  of  any  state  or  territory 
thereof,  or  imposed  by  the  government  of  any  foreign  country  as 
a  condition  to  carrying  on  business  therein;  (fifth)  all  amounts 
received  by  it  within  the  year  as  dividends  upon  stock  of  other 
corporations,  joint  stock  companies  or  associations,  or  insur- 
ance companies,  subject  to  the  tax  hereby  imposed. 

Provided,  that  in  the  case  of  a  corporation,  joint  stock  com- 
pany or  association,  or  insurance  company,  organized  under  the 
laws  of  a  foreign  country,  such  net  income  shall  be  ascertained 


FEDERAL  CORPORATION  TAX  LAW.  769 

by  deducting  from  the  gross  amount  of  its  income  received 
witliin  thie  year  from  business  transacted  and  capital  invested 
within  the  United  States  and  any  of  its  territories,  Alaska,  and 
the  District  of  Columbia  (first),  all  the  oi'dinary  and  necessary 
expenses  actually  paid  within  the  year  out  of  earnings  in  the 
maintenance  and  operation  of  its  business  and  property  within 
the  United  States  and  its  territories,  Alaska,  and  the  District  of 
Columbia,  including  all  charges  such  as  rentals  or  franchise  paj" 
ments  required  to  be  made  as  a  condition  to  the  continued  use 
or  possession  of  property;  (second)  all  losses  actually  sustained 
within  the  year  in  business  conducted  by  it  within  the  United 
States  or  its  territories,  Alaska,  or  the  District  of  Columbia  not 
compensated  by  insurance  or  otherwise,  including  a  reasonable 
allowance  for  depreciation  of  property,  if  any,  and  in  the  case 
of  insurance  companies  the  sums  other  than  dividends,  paid 
within  the  year  on  policy  and  annuity  contracts  and  the  net 
addition,  if  any,  required  by  law  to  be  made  within  the  j-ear  to 
reserve  funds;  (third)  interest  actually  paid  within  the  year  on 
its  bonded  or  other  indebtedness  to  an  amount  of  such  bonded 
and  other  indebtedness,  not  exceeding  the  proportion  of  its 
paid-up  capital  stock  outstanding  at  the  close  of  the  year  which 
the  gross  amount  of  its  income  for  the  year  from  business  trans- 
acted and  capital  invested  within  the  United  States  and  any  of 
its  territories,  Alaska,  and  the  District  of  Columbia  bears  to  the 
gross  amount  of  its  income  derived  from  all  sources  within  and 
without  the  United  States;  (fourth)  the  sums  paid  by  it  within 
the  year  for  taxes  imposed  under  the  authority  of  the  United 
States  or  of  any  state  or  territory  thereof;  (fifth)  all  amounts 
received  by  it  within  the  year  as  dividends  upon  stock  of  other 
corporations,  joint  stock  companies  or  associations,  and  insur- 
ance companies,  subject  to  the  tax  hereby  imposed.  In  the  case 
of  assessment  insurance  companies  the  actual  deposit  of  sums 
with  state  or  territorial  ofiicers,  pursuant  to  law,  as  additions  to 
guaranty  or  reserve  funds,  shall  be  treated  as  being  payments 
required  by  law  to  reserve  funds. 

Deductions — When  tax  computed — When  returns  to  be  made,  to 
whom,  and  where — Form  to  be  prescribed  by  commissioner 
of  internal  revenue — What  to  contain. 

Third — -There  shall  be  deducted  from   the  amount  of  the  net 
income  of  each  of  such  corporations,  joint  stock  companies,  or 
associations,  or  insurance  companies,  ascertained  as  provided  in 
33— CL 


770  PEUERAL  CORPORATION  TAX  LAW. 

the  foregoing  paragraphs  of  this  section,  the  sum  of  five  thou- 
sand dollars,  and  said  tax  shall  be  computed  upon  the  remainder 
of  said  net  income  of  such  corporation,  joint  stock  company  or 
association,  or  insurance  company,  for  the  year  ending  December 
thirty-first,  nineteen  hundred  and  nine,  and  for  each  calendar  year 
I  hereafter  ;  and  on  or  before  the  first  day  of  March,  nineteen  hun- 
dred and  ten,  and  the  first  day  of  March  in  each  year  thereafter, 
a  true  and  accurate  return  under  oath  or  affirmation  of  its  presi- 
dent, vice-president,  or  other  principal  officer,  and  its  treasurer 
or  assistant  treasurer,  shall  be  made  by  each  of  the  corporations, 
joint  stock  companies  or  associations,  and  insurance  companies, 
subject  to  the  tax  imposed  by  this  section,  to  the  collector  of 
internal  revenue  for  the  district  in  which  such  corporation,  joint 
stock  company  or  association,  or  insurance  company,  has  its 
principal  place  of  business,  or,  in  the  case  of  a  corporation,  joint 
stock  company  or  association,  or  insurance  company,  organized 
under  the  laws  of  a  foreign  country,  in  the  place  where  its  prin- 
cipal business  is  carried  on  within  the  United  States,  in  such 
form  as  the  commissioner  of  internal  revenue,  with  the  approval 
of  the  secretary  of  the  treasury  shall  prescribe,  setting  forth, 
(first)  the  total  amount  of  the  paid-up  capital  stock  of  such 
corporation,  joint  stock  company  or  association,  or  insurance 
company,  outstanding  at  the  close  of  the  year;  (second)  the 
total  amount  of  the  bonded  and  other  indebtedness  of  such  cor- 
poration, joint  stock  company  or  association  or  insurance  com- 
pany at  the  close  of  the  year;  (third)  the  gross  amount  of  the 
income  of  such  corporation,  joint  stock  company  or  association, 
or  insurance  company  received  during  such  year  from  all  sources, 
and  if  organized  under  the  laws  of  a  foreign  country  the  gross 
amount  of  its  income  received  within  the  year  from  business 
transacted  and  capital  invested  within  the  United  States  and 
any  of  its  territories,  Alaska,  and  the  District  of  Columbia ; 
also  the  amount  received  by  such  corporation,  joint  stock  com- 
pany or  association,  or  insurance  company,  within  the  year  by 
way  of  dividends  upon  stock  of  other  corporations,  joint  stock 
companies  or  associations,  or  insurance  companies,  subject  to  the 
tax  imposed  by  this  section  ;  (fourth)  the  total  amount  of  all  the 
ordinary  and  necessary  expenses  actually  paid  out  of  eai'nings 
in  the  maintenance  and  operation  of  the  business  and  properties 
of  such  corporation,  joint  stock  company  or  association,  or  insur- 
ance company,   within  the  year,  stating  separately  all  charges 


FEDERAL  CORPORATION  TAX  LAW.  771 

such  as  rentals  or  franchise  payments  required  to  be  made  as  a 
condition  to  the  continued  use  or  possession  of  property,  and 
if  organized  under  the  laws  of  a  foreign  country  the  amount  so 
paid  in  the  maintenance  and  operation  of  its  business  within  the 
United  States  and  its  territories,  Alaska,  and  the  District  of 
Columbia;  (fifth)  the  total  amount  of  all  losses  actually  sus- 
tained during  the  year  and  not  compensated  by  insurance  or 
otherwise,  stating  separately  any  amounts  allowed  for  deprecia- 
tion of  property,  and  in  the  case  of  insurance  companies  the 
sums  other  than  dividends  paid  within  the  year  on  policy  and 
annuity  contracts  and  the  net  addition,  if  any,  required  by  law 
to  be  made  within  the  year  to  reserve  funds ;  and  in  the  case  of 
a  corporation,  joint  stock  company  or  association,  or  insurance 
company,  organized  under  the  laws  of  a  foreign  country,  all 
losses  .actually  sustained  by  it  during  the  year  in  business  con- 
ducted by  it  within  the  United  States  or  its  territories,  Alaska, 
and  the  District  of  Columbia,  not  compensated  by  insurance  or 
otherwise,  stating  separately  any  amounts  allowed  for  deprecia- 
tion of  property,  and  in  the  case  of  insurance  companies  the 
sums  other  than  dividends,  paid  within  the  year  on  policy  and 
annuity  contracts  and  the  net  addition,  if  any,  required  by  law 
to  be  made  within  the  year  to  reserve  fund;  (sixth)  the  amount 
of  interest  actually  paid  within  the  year  on  its  bonded  or  other 
indebtedness  to  an  amount  of  such  bonded  and  other  indebted- 
ness not  exceeding  the  paid-up  capital  stock  of  such  corporation, 
joint  stock  company  or  association,  or  insurance  company,  out- 
standing at  the  close  of  the  year,  and  in  the  case  of  a  bank, 
hanking  association  or  trust  company,  stating  separately  all 
interest  paid  by  it  within  the  year  on  deposits ;  or  in  case  of  a 
corporation,  joint  stock  company  or  association,  or  insurance 
company,  organized  under  the  laws  of  a  foreign  country,  interest 
so  paid  on  its  bonded  or  other  indebtedness  to  an  amount  of  such 
bonded  and  other  indebtedness  not  exceeding  the  proportion  of 
its  paid-up  capital  stock  outstanding  at  the  close  of  the  year, 
which  the  gross  amount  of  its  income  for  the  year  from  business 
transacted  and  capital  invested  within  the  United  States  and 
any  of  its  territories,  Alaska,  and  the  District  of  Columbia, 
bears  to  the  gross  amount  of  its  income  derived  from  all  sources 
within  and  without  the  United  States;  (seventh)  the  amount 
paid  by  it  within  the  year  for  taxes  imposed  under  the  authority 
of  the  United  States  or  any  state  or  territory  thereof,  and  sepa- 


772  FEDERAL  CORPORATION  TAX  LAW. 

rately  the  amount  so  paid  by  it  for  taxes  imposed  by  the  govern- 
ment of  any  foreign  country  as  a  condition  to  carrying  on 
business  therein;  (eighth)  the  net  income  of  such  corporation, 
joint  stock  company  or  association,  or  insurance  company  after 
making  the  deductions  in  this  section  authorized.  All  such 
returns  shall  as  received  be  transmitted  forthwith  by  the  col- 
lector to  the  commissioner  of  internal  revenue. 

Commissioner  may  require  further  information — iVIay  examine 
books  and  papers  and  summon  witnesses — IVIay  invoke  aid 
of  courts — IVIay  amend  return. 

Fourth — Whenever  evidence  shall  be  produced  before  the  com- 
ini.ssioner  of  internal  revenue  which  in  the  opinion  of  the  com- 
missioner justifies  the  belief  that  the  return  made  by  any 
corporation,  joint  stock  company  or  association,  or  insurance 
company,  is  incorrect,  or  whenever  any  collector  shall  report  to 
the  commissioner  of  internal  revenue  that  any  corporation,  joint 
stock  company  or  association,  or  insurance  company,  has  failed 
to  make  a  return  as  required  by  law,  the  commissioner  of 
internal  revenue  may  require  from  the  corporation,  joint  stock 
company  or  association,  or  insurance  company  making  such 
return,  such  further  information  with  reference  to  its  capital, 
income,  losses,  and  expenditures  as  he  may  deem  expedient ;  and 
the  commissioner  of  internal  revenue,  for  the  purpose  of  ascer- 
taining the  correctness  of  such  return  or  for  the  purpose  of 
making  a  return  where  none  has  been  made,  is  hereby  authorized, 
by  any  regularly  appointed  revenue  agent  specially  designated 
by  him  for  that  purpose,  to  examine  any  books  and  papers  bear- 
ing upon  the  matters  required  to  be  included  in  the  return  of 
such  corporation,  joint  stock  company  or  association,  or  insur- 
ance company,  and  to  require  the  attendance  of  any  officer  or 
employee  of  such  corporation,  joint  stock  company  or  associa- 
tion, or  insurance  company,  and  to  take  his  testimony  with 
reference  to  the  matter  required  by  law  to  be  included  in  such 
return,  with  power  to  administer  oaths  to  such  person  or  per- 
sons ;  and  the  commissioner  of  internal  revenue  may  also  invoke 
the  aid  of  any  court  of  the  United  States  having  jurisdiction  to 
require  the  attendance  of  such  oflScers  or  employees  and  the  pro- 
duction of  such  books  and  papers.  Upon  the  information  so 
acquired  the  commissioner  of  internal  revenue  may  amend  any 
return  or  make  a  I'eturn  where  none  has  been  made.     All  pro- 


FEDERAL  CORPORATION  TAX  LAW.  773 

ceedings  taken  by  the  commissioner  of  internal  revenue  under 
the  provisions  of  this  section  shall  he  subject  to  the  approval  of 
the  secretary  of  the  treasury. 

Commissioner  to  make  assessments — Penalty  for  fraudulent 
return  or  failure  to  make  same;  exception  and  extension  to 
make — Penalty;  assessment  and  collection  of — Assessments; 
notification  of;  when  payable;  penalty  for  delinquency. 

Fifth — All  returns  shall  be  retained  by  the  commissioner  of 
internal  revenue,  who  shall  make  as-sessments  thereon  :  and  in 
case  of  any  return  made  with  false  or  fraudulent  intent,  he  shall 
add  one  hundred  per  centum  of  such  tax,  and  in  case  of  a  refusal 
or  neglect  to  make  a  return  or  to  verify  the  same  as  aforesaid 
he  shall  add  fifty  per  centum  of  such  tax.  In  case  of  neglect 
occasioned  by  the  sickness  or  absence  of  an  officer  of  such  cor- 
poration, joint  stock  company  or  association,  or  insurance  com- 
pany, required  to  make  said  return,  or  for  other  snflicient  reason, 
the  collector  may  allow  such  further  time  for  making  and  deliv- 
ering such  return  as  he  may  deem  necessary,  not  exceeding  thirty 
days.  The  amount  so  added  to  the  tax  shall  be  collected  at  the 
same  time  and  in  the  same  manner  as  the  tax  originally  a.sspssed 
unless  the  refusal,  neglect,  or  falsity  is  discovered  after  the  date 
for  payment  of  said  taxes,  in  which  case  the  amount  so  added 
shall  be  paid  by  the  delinquent  corporation,  joint  stock  company 
or  association,  or  insurance  company,  immediately  upon  notice 
given  by  the  collector.  All  assessments  shall  be  made  and  the 
several  corporatious,  joint  stock  companies  or  associations,  or 
insurance  companies,  shall  be  notified  of  the  amount  for  which 
they  are  respectively  liable  on  or  before  the  first  day  of  June  of 
each  successive  year,  and  said  assessments  shall  be  paid  on  or 
before  the  thirtieth  day  of  June,  except  in  cases  of  refusal  or 
neglect  to  make  such  return,  and  in  cases  of  false  or  fraudulent 
returns,  in  which  cases  the  commissioner  of  internal  revenue 
shall,  upon  the  discovery  thereof,  at  any  time  within  three  years 
after  .said  return  is  due,  make  a  return  upon  information 
obtained  as  above  provided  for,  and  the  assessment  made  by  the 
commissioner  of  internal  revenue  thereon  shall  be  paid  by  such 
corporation,  joint  stock  company  or  association,  or  insurance 
company  immediately  upon  notification  of  the  amount  of  such 
assessuient ;  and  to  any  sura  or  sums  due  and  unpaid  after  the 
thirtielh  day  of  June  in  any  year,  and  for  ten  days  after  notice 


774  FEDERAL  CORPORATION  TAX  LAW. 

and  demand  thereof  by  the  collector,  there  shall  b«  added  the 
sum  of  five  per  centum  on  the  amount  of  tax  unpaid  and  interest 
at  the  rate  of  one  per  centum  per  month  upon  said  tax  from  the 
time  same  becomes  due. 

Assessment  returns  public  record. 

Sixth — When  the  assessment  shall  be  made,  as  provided  in 
this  section,  the  returns,  together  with  any  corrections  thereof 
which  may  have  been  made  by  the  commissioner,  shall  be  filed  in 
the  otfice  of  the  commissioner  of  internal  revenue  and  shall  con- 
stitute public  recoi'ds  and  be  open  to  inspection  as  such. 

Unlawful  to  divulge  information — Penalty. 

Seventh — It  shall  be  unlawful  for  any  collector,  deputy  col- 
lector, agent,  clerk,  or  other  officer  or  employee  of  the  United 
States  to  divulge  or  make  known  in  any  manner  whatever  not 
provided  by  law  to  any  person  any  information  obtained  by  him 
in  the  discharge  of  his  ofiicial  duty,  or  to  divulge  or  make  known 
in  any  manner  not  provided  by  law  any  document  received,  evi- 
dence taken,  or  report  made  under  this  section  except  upon  the 
special  direction  of  the  president ;  and  any  offense  against  the 
foregoing  provision  shall  be  a  misdemeanor  and  be  punished  by 
a  fine  not  exceeding  one  thousand  dollars,  or  by  imprisonment 
not  exceeding  one  year,  or  both,  at  the  discretion  of  the  court. 

Refusal  or  neglect  to  make  return — Penalty — False  or  fraudulent 
return;  penalty  for — All  laws  applicable  to  tax  extended — 
Jurisdiction  of  courts. 

Eif/hth — If  any  of  the  corporations,  joint  stock  companies  or 
associations,  or  insurance  companies,  aforesaid,  shall  refuse  or 
neglect  to  make  a  return  at  the  time  or  times  hereinbefore 
specified  in  each  year,  or  shall  render  a  false  or  fraudulent 
return,  such  corporation,  joint  stock  companj'  or  association,  or 
insurance  company,  shall  be  liable  to  a  penalty  of  not  less  than 
one  thousand  dollars  and  not  exceeding  ten  thousand  dollars. 

Any  person  authorized  by  law  to  make,  render,  sign,  or  verify 
any  return  who  makes  any  false  or  fraudulent  return,  or  state- 
ment, with  intent  to  defeat  or  evade  the  asse.ssment  required  by 
this  .section  to  be  made,  shall  be  guilty  of  a  misdemeanor,  and 
shall  be  fined  not  exceeding  one  thousand  dollars  or  to  be 
imprisoned  not  exceeding  one  year,  or  both,  at  the  discretion  of 
the  court,  with  costs  of  prosecution. 


FEDERAL  COEPOBATION  TAX  LAW.  775 

All  laws  relating  to  the  collection,  remission  and  refund  of 
internal  revenue  taxes,  so  far  as  applicable  to  and  not  incon- 
sistent with  the  provisions  of  this  section,  are  hereby  extended 
and  made  applicable  to  the  tax  imposed  by  this  section. 

Jurisdiction  is  hereby  conferred  upon  the  circuit  and  district 
courts  of  the  United  States  for  the  district  within  which  any 
person  summoned  under  this  section  to  appear  to  testify  or  to 
produce  books,  as  aforesaid,  shall  reside,  to  compel  such  attend- 
ance, production  of  books,  and  testimony  by  appropriate  process. 


When  act  shall  take  effect. 

Sec.  42.     That    unless    otherwise    herein    specially    provided, 
this  act  shall  take  effect  on  the  day  following  its  passage. 

(Approved.     Signed    five    minutes    after    five    o'clock    p.    m., 
August  5,  1909 ;  in  effect  August  6,  1909. ) 


INDEX. 


APPENDIX   INDEX 777 

GENERAL    INDEX    789 


APPENDIX  INDEX. 


FEDERAL   CORPORATION   TAX    LAW.                                           pAiii;. 
An    act   of   Congress    to    provide    revenue,    equalize    duties, 
and   encourage   tlie  industries  of  the  United  States,   and 
for  otlier  purposes.     Approved  August  .5,  1009 TG7 

FORMS   AND    PRECEDENTS. 

Articles  of  incorporation,  of  co-opei'ative  associations 737 

corporation  with  capital  stock. .  . ! 731 

corporation   witliout  capital   stock 734 

Bonded     indebtedness,     creation     of 730 

Business,  principal  place  of,  removal 750 

Capital  stock,  increase  of 750 

Directors,  increase  or  decrease  of  numljer  of 757 

Dissolution,  voluntary,   order  for 7H4 

Existence,    corporate,    continuance    of,    under    §  287    of    the 

Civil    Code 724 

extension  of,  under  §  401  of  the  Civil  Code 726 

extension  of,   under  §7,  Art.  XII,   of  the  Constitution...  728 

Name,  change  of,  order  for 763 

LEGISLATION    PRIOR   TO  THE  CODES. 

Corporation  legislation  enacted  prior  to  establishment  of 
the  codes,  and  provisions  of  Civil  Code  for  repeal  of 
existing   statutes 715 

Statutes  continued  in  force  by  the  codes 723 

repealed  by  the  codes 717 

STATUTES  AT  LARGE. 

ADVERTISEMENTS. 

See  Fraudulent  Reports. 

AGRICULTURAL   ASSOCIATIONS. 

An  act  entitled  an  act  to  form  agricultural  districts,  to 
provide  for  formation  of  agricultural  associations 
therein,  and  for  the  management  and  control  of  the  same 
by  the  state,  and  to  repeal  all  acts  and  parts  of  acts 
in  conflict  with  this  act.  Approved  March  31,  1897;  stats. 
1897,    p.    304 430 

An  act  to  form  agricultui-al  districts,  to  provide  for  the 
formation,  organization  and  powers,  of  agricultural  asso- 
ciations therein  and  for  the  management  and  control  of 
the  same  by  the  state,  and  repealing  all  acts  and  portions 
of  acts  in  conflict  with  this  act.  Approved  April  17,  1909; 
stats.   1909,   p.    979 447 


778  APPENDIX   INDEX. 

AGRICULTURAL  ASSOCIATIONS— Continued.  Page. 
An  act  authorizing  district  agricultural  associations  organ- 
ized under  the  laws  of  the  State  of  California,  to  lease 
lands  owned,  managed  or  controlled,  in  trust  or  other- 
wise, to  municipal  corporations,  counties  or  cities  and 
counties,  in  which  such  lands  are  situated,  and  repealing 
all  acts  and  parts  of  acts  in  conflict  herewith.  Approved 
April  22,  1909;  stats.  1909,  p.  1082 453 

ANIMALS. 

An    act    for    the    more    effectual    prevention    of    cruelty    to 

animals.     Approved  March  20,  1874;   stats.  1873-4,  p.  499. 

Codified.     (History) 454 

An  act  to  prevent  the  spread  of  contagious  diseases  among 

animals.     Approved  March  20,  1905;  stats.  1905,  p.  317...   454 

ANTI-TRUST. 

See  Combinations.  % 

BANKS  AND    BANKING. 

An  act  providing  for  the  dissolution  and  winding  up  of 
savings  banlvs,  trust  companies,  and  banks  of  deposit, 
and  providing  for  the  disposition  of  all  funds  deposited 
therein  and  not  claimed  withn  five  years  after  such 
banks  have  ceased  to  do  business,  or  after  the  com- 
mencement of  proceedings  to  dissolve.  Approved  March 
31,   1891 ;   stats.   1891,  p.   271 455 

An  act  to  compel  savings  banks  to  publish  a  sworn  state- 
ment of  all  unclaimed  deposits.  Approved  March  23, 
1893;  stats.  1893,  p.  183.  Superseded  and  repealed.  (His- 
tory)       457 

An  act  to  compel  all  depositaries  of  money  and  commer- 
cial banks  to  publish  a  sworn  statement  of  all  unclaimed 
deposits.  Approved  February  25,  1897;  stats.  1897,  p.  27. 
Superseded  and  repealed.     (History) 457 

An  act  creating  a  board  of  bank  commissioners,  and  pre- 
scribing their  duties  and  powers.  Approved  March  24, 
1903;  stats.  1903,  p.  365.  Superseded  and  repealed. 
(History)    458 

An  act  to  authorize  the  deposit  of  state  moneys  in  banks 
in  this  state,  and  to  repeal  all  acts  or  parts  of  acts  in 
conflict  with  this  act.  Approved  February  28,  1907; 
stats.  1907,  p.   67 458 

An  act  to  provide  for  and  regulate  the  deposit  of  county 
and  municipal  moneys  in  banks  and  banking  corpora- 
tions, limiting  the  amount  of  public  moneys  that  may 
be  deposited  therein,  and  providing  a  penalty  for  the 
illegal  deposit  and  use  thereof.  Approved  March  23, 1907 ; 
stats.    1907,    p.    974 461 

An  act  to  define  and  regulate  the  business  of  banking. 
Approved  March  1,  1909;  stats.  1909,  p.  87 4C5 

BATH    HOUSES. 

An  act  to  secui'e  the  safety  of  the  public  at  bathing  places 
upon  the  seacoast  and  lakes.  Approved  March  10,  1909; 
stats.  1909,  p.  261 514 


APPENDIX    INDEX.  770 

BOARDS  OF  TRADE. 

See  Chamhers  of  Commerce. 

BENEFICIAL  AND  RELIEF  ASSOCIATIONS.                           Page. 
An  act  relating  to  mutual  beneficial  and  relief  associations. 
Approved  March  28,  1874;  stats.  187.3-4,  p.  745.     Superseded. 
(History)    515 

BONDS. 

An  act  to  facilitate  the  giving  of  bonds  required  by  law. 
Approved  March  12,  1885;  stats.  1885,  p.  114 515 

An  act  providing  for  the  cancellation  of  bonds  given  to 
secure  the  performance  of  the  terms  and  conditions  of 
franclilses  or  privileges  granted  by  the  legislative  or 
other  governing  body  of  counties  or  municipalities,  the 
release  of  the  sureties  on  sucli  bonds,  and  the  filing  and 
acceptance  of  new  bonds  in  lieu  thereof.  Approved 
March  20,  1907;  stats.  1907,  p.  747 517 

BRIDGES. 

An  act  to  provide  for  bridges  across  navigable  streams, 
and  across  estuaries,  ponds,  swamps,  or  arms  of  bays 
tliat  may  be  outside  of  the  line  of  navigable  waters. 
Approved  March  14,  1881;  stats.  1S81,  p.  76 518 

An  act  concerning  bridges  across  navigable  streams.  Ap- 
proved February  25,  1897;  stats.  1897,  p.  21 520 

An  act  to  enable  adjoining  counties  to  enter  into  agree- 
ments for  tlie  construction,  rebuilding,  replacing,  or 
relocation  of  bridges  over  navigable  waters  between 
said  counties,  jointly  with  other  persons  or  corporations. 
Approved  March  23,  1907;  stats.  1907,  p.  982 522 

BROKERS. 

An  act  fixing  the  rates  of  interest  and  charges  on  loans 
upon  cliattel  mortgages  on  certain  personal  property,  and 
prescribing  penalties  for  the  violation  of  the  act.  Ap- 
proved March  20,  1905;  stats.  1905,  p.  422.  Unconstitu- 
tional.     (History) 52?> 

An  act  to  "provide  for  tlie  incorporation  of  associations  for 
lending  money  on  personal  property,  and  regulating  the 
same,  and  to  forbid  certain  loans  of  money,  property 
or  credit.  Approved  March  21,  1905;  stats.  1905,  p.  7li. 
Unconstitutional.      (History) 523 

An  act  to  define  personal  property  brokers  and  regulate 
their  cliarge  and  business.  Approved  April  16,  1909; 
stats.  1909,  p.  969 523 

BUILDING    AND    LOAN     COMMISSIONERS. 

An  act  cieating  a  bureau  of  building  and  loan  supervision; 
providing  for  the  appointment  of  administration  ofH- 
cials  therefor  to  be  known  as  the  building  and  loan 
commissioners;  prescribing  their  duties,  powers  and  com- 
pen.sation;  providing  for  a  secretary,  his  powers  and  com- 
pensation; providing  for  the  rental  of  offices  for  the  use 
of  the  bureau  and  for  traveling  and  office  expenses;  provid- 
ing a  system  for  licensing  ))uilding  and  loan  andotlier  asso- 


780  APPENDIX  INDEX. 

BUILDING  AND  LOAN  COMM ISSIONERS— Continued.  Page. 
eiations,  and  for  assessing  and  collecting'  the  license  fees 
necessary  to  meet  the  salaries  and  other  expenses;  pro- 
viding a  course  of  procedure  where  violations  of  law, 
or  unsafe  practices  are  found  to  exist,  or  are  reported 
by  the  commissioners  to  the  attorney  general;  providing 
for  involuntary  liquidation  by  trustees,  and  proceeding.s 
in  connection  therewith;  providing  for  exemption  of 
property  of  associations  in  liquidation  from  attachments, 
executions  and  liens,  pending  liquidation;  providing  for 
and  requiring  associations  to  procure  licenses,  pay 
assessments  levied  for  pro  rata  of  salaries  and  expenses, 
and  to  make  and  tile  reports;  providing  penalties  for 
violations  of  law  and  orders  of  the  commissioners;  pro- 
viding for  succession  in  office,  and  repealing  all  acts 
and  parts  of  acts  in  conflict  herewith.  Approved  March 
21,  l'J05 ;  stats.  1905,  p.  659 526 

CEMETERIES. 

An  act  to  authorize  the  incorporation  of  rural  cemetery 
associations.     Approved  April  18,  1859;  stats.  1859,  p.  281.   536 

An  act  supplemental  to  an  act  entitled  "An  act  to  author- 
ize the  incorporation  of  rural  cemetery  associations," 
appi'oved  April  28,  1859,  authorizing  such  association 
to  erect,  purchase,  or  lease  buildings  and  furnaces  and 
other  works  for  cremation  of  human  bodies;  also,  to 
erect  or  lease  buildings  in  which  shall  be  entombed  only 
the  ashes  of  cremated  dead,  to  make  provision  for  the 
care  of  the  burial  places  and  ashes  of  the  dead;  also,  to 
provide  for  the  cremation  of  the  unclaimed  dead  and 
bodies  liable,  if  interred,  to  spread  disease.  Approved 
March  1,  1899 ;  stats.  1899,  p.  36 542 

An  act  to  provide  the  manner  of  execution  of  deeds  by 
cemetery  corporations.  Approved  March  26,  1895;  stats. 
1895,  p.  75 544 

CERTIFICATES. 

An  act  providing  for  the  issuance  of  duplicate  certificates, 
where  certificates  issued  under  authority  of  law  have 
been  lost  or  destroyed  by  conflagration  or  other  public 
calamity.  Approved  June  16,  1906;  stats.  1906,  p.  71 544 

CHAMBERS   OF    COMMERCE. 

An  act  to  provide  for  the  formation  of  chambers  of  com- 
merce, boards  of  trade,  mechanic  institutes,  and  other 
kindred  protective  associations.  Approved  March  31, 
1866;  stats.  1865-6,  p.  469.     Sm)erseded.     (History) 545 

CHILDREN. 

An  act  for  the  incorporation  of  societies  for  the  preven- 
tion of  cruelty  to  children.  Approved  April  3,  1876;  stats. 
1875-6,  p.  830.     Codified.     (History) 545 

COMBINATIONS. 

An  act  to  prevent  combinations  to  obstruct  the  sale  of 
live  stock  in  the  State  of  California.  Approved  Febru- 
ary 27,  1893;  stats.  1893,  p.  30 545 


APPENDIX   INDEX.  781 

COMBINATIONS— Continued.  Page. 

An  act  to  limit  the  meaning  of  the  word  "conspiracy" 
and  also  the  use  of  "restraining  orders"  and  "injunc- 
tions," as  applied  to  disputes  between  employers  and 
employees  in  the  State  of  California.  Approved  March 
20,   1903;   stats.   1903,   p.    289 54S 

An  act  to  define  trust  and  to  provide  for  criminal  penalties 
and  civil  damages,  and  punishment  of  corporations,  per- 
sons, firms,  and  associations,  or  persons  connected  with 
them,  and  to  promote  free  competition  in  commerce  and 
all  classes  of  business  in  this  state.  Approved  March  23, 
1907  ;  stats.   1907,  p.   984 54'.) 

CONSPIRACY. 

See  Combinations. 

CO-OPERATIVE    ASSOCIATIONS. 

An  act  to  define  co-operative  business  coi-porations,  and  to 
provide  for  the  organization  and  government  thereof. 
Approved  April  1,  1878;  stats.  1877-8,  p.  883.  Superseded. 
(History)    554 

An  act  to  provide  for  incorporation,  operation,  and  man- 
agement of  co-operative  associations.  Approved  March 
27,  1895;  stats.  1895,  p.  221.     Codified.     (History) 554 

CREMATORIES. 

An  act  to  prevent  the  propagation  of  disease  through  con- 
tamination of  the  atmosphere  by  gases  or  fumes  arising 
from  crematories  for  the  disposition  of  garbage,  ashes, 
offal,  and  other  refuse  matter,  and  to  prescribe  pen- 
alties.    Approved  April  17,  1909;  stats.  1909,  p.  978 555 

DAY   OF    REST. 

See  Hours  of  Labor. 

DEMURRAGE. 

See  Railroads. 

EMPLOYMENT  AND  EMPLOYMENT  AGENTS. 

An  act  to  prevent  misrepresentations  of  conditions  of  em- 
ployment, making  it  a  misdemeanor  to  misrepresent  the 
same  and  providing  penalties  therefor.  Approved  March 
20,  1903;  stats.  1903,  p.  2G9 551! 

An  act  defining  the  duties  and  liabilities  of  employment 
agents,  making  the  violation  thereof  a  misdemeanor  and 
fixing  penalties  therefor.  Approved  February  12,  1903; 
stats.  1903,  p.  14 557 

An  act  to  regulate  and  license  the  conducting  and  opera- 
ting gf  employment  agencies  and  to  provide  a  revenue 
therefrom,  for  the  enforcement  of  the  provisions  of  this 
act  and  other  acts  relating  to  employment  agents  and 
employment  agencies.  Approved  March  6,  1909;  stats. 
1909,    p.    191 5t)0 

EMIGRATION. 
An  act  to  promote  emigration  from  the  State  of  California. 
Approved  March  26,  1880;  stats.  1880,  p.  15 563 


782  APPENDIX   INDEX. 

EXECUTORS.                                                                                          Page. 
An  act  authorizing  certain  corporations  to  act  as  executor 
and  in  other  capacities,  and  to  provide  for  and  regulate 
the  administration  of  trusts  by  such  corporations.     Ap- 
proved April  6,  1891 ;  .stats.  1891,  p.  490 564 

FACTORIES   AND   WORKSHOPS. 

See  Help  and  Sanitation. 

FOREIGN    CORPORATIONS. 

An  act  in  relation  to  foreign  corporations.  Approved  April 
1.  1S72;  stats.  1871-2,  p.  826.     Siiperseded.     (History) 572 

An  act  requiring  corporations  organized  under  the  laws 
of  another  state,  territory  or  foreign  country,  to  file  a 
certified  copy  of  their  articles  of  incorporation  in  the 
ofHce  of  the  secretary  of  state,  and  a  certified  copy 
thereof,  duly  certified  by  the  secretary  of  state  of  this 
state,  in  tlie  office  of  tlie  county  clerk  of  the  county 
where  its  principal  place  of  business  is  located  and  also 
where  such  corporation  owns  property,  and  requiring 
such  corporation  to  pay  to  the  secretary  of  state  the 
same  fees  as  are  paid  by  corporations  formed  under  the 
laws  of  the  State  of  California  and  providing  for  a  pen- 
alty for  the  violation  of  the  provisions  of  this  act.  Ap- 
proved March  8,  1901;  stats.  1901,  p.  108.  Superseded. 
(History)    572 

FRANCHISES. 

An  act  relating  to  the  granting  by  counties  and  munici- 
palities of  franchises  for  the  construction  of  paths  and 
roads  for  the  use  of  bicycles  and  other  horseless  vehicles. 
Approved  March  21,  1897;  stats.  1897,  p.  191.  Superseded. 
(History)     572 

An  act  providing  for  the  sale  of  street  railroad  and  other 
francliises  in  counties  and  municipalities,  and  providing 
conditions  for  the  granting  of  such  franchises  by  legisla- 
tive or  otlier  governing  bodies,  and  repealing  conflicting 
acts.     Approved  March  22,  1905;  stats.  1905,  p.  777 573 

FRAUDULENT    REPORTS. 

An  act  to  protect  stockholders  and  persons  dealing  witli 
corporations  in  this  state.  Approved  March  29,  1878; 
stats.  1877-8,  p.  095 57S 

An  act  to  prevent  false  and  incorrect  representations  and 
advertisements  concerning  articles  offered  for  sale  and 
prescribing  a  punishment  for  the  violation  thereof.  Ap- 
proved April  22,  1909;  stats.  1909,  p.  1078 579 

GAME    PRESERVES. 

An  act  to  provide  for  the  transfer  to  the  State  of  Cali- 
fornia by  owners  of  patented  lands  therein  of  the  riglit 
to  preserve  and  protect  wild  game  on  such  patented 
lands;  to  define  the  duties  of  the  state  board  of  fish  com- 
missioners in  relation  to  the  control  of  such  rights,  and  to 
declare  the  hunting  of  wild  game  within  the  exterior 
boundaries  of  the  land  to  which  such  right  attaches,  a 
misdemeanor.  Approved  March  21,  1907;  stats.  1907, 
p.   788 579 


APPENDIX    INDEX.  783 

GAS  COMPANIES.  Page. 

An  act  concerning  gas  companies.     Approved  April  4,  1870; 

stats.  1869-70,  p.  815.     Superseded:     (History)    581 

An  act  to  provide  for  the  letting  of  contracts  for  lighting 

of   streets   and   public    buildings    in   cities   and   towns    in 

the  State  of  California.     Approved  March  26,  1895;  stats. 

1895,  p.  191.     Repealed.     (History) 581 

HEALTH   AND  SANITATION. 

An  act  to  provide  for  the  proper  sanitary  condition  of 
factories  and  workshops,  and  the  preservation  of  the 
health  of  the  employees.  Approved  February  6,  1889; 
stats.  1889,  p.  3 582 

An  act  providing  for  the  sanitation  of  food  producing 
establisliments,  places  wliere  food  is  stored,  prepared, 
kept  or  manufactured  and  in  wliich  food  is  distributed; 
regulating  the  health  of  persons  by  whom  the  materials 
from  whieli  food  is  prepared  or  the  finished  product  is 
handled;  providing  for  the  inspection  of  such  places,  per- 
sons and  things;  declaring  places  and  tilings  in  violation 
of  this  act  to  be  nuisances  dangerous  to  health  and  pro- 
viding for  the  abatement  of  tiie  same;  making  viola- 
tions of  tliis  act  misdemeanors;  and  providing  for  the 
Hunishment  of  the  same.  Approved  March  6,  1909;  stats. 
1909,  p.  151 584 

An  act  declaring  property  infested  with  certain  rodents  to 
be  a  public  nuisance;  requiring  owners,  occupants,  and 
persons  liaving  possession  of  or  dominion  over  such  prop- 
erty to  endeavor  to  exterminate  and  destroy  such 
rodents;  providing  for  the  inspection  of  property  by 
boards  of  health  and  healtli  officers;  autliorizing  boards 
of  supervisors  and  other  governing  bodies  to  purchase 
materials  and  employ  inspectors  to  prosecute  such  work 
of  extermination;  authorizing  state  and  local  health 
authorities  to  prosecute  such  work  in  certain  cases;  pro- 
viding for  the  payment  of  the  expense  thereof;  making 
the  amount  of  such  expense  a  lien  on  the  property;  pro- 
viding for  the  collection  of  such  amount  by  foreclosure 
of  such  lien  and  declaring  any  violation  of  the  provisions 
thereof  to  be  a  misdemeanor.  Approved  March  13,  1909; 
stats.  1909,  p.  311 588 

HOLIDAYS. 

An  act  declaring  Pebruai-y  12th,  the  birthday  of  Abi-aham 
Lincoln,  a  legal  holiday  and  providing  for  a  half-day 
session  in  the  public  schools  on  such  holiday,  and  for 
certain  exercises  in  tlie  public  schools.  Approved  April 
13,  1909 ;  stats.  1909,  p.  861 591 

HOSPITALS. 

An  act  to  promote  the  public  welfare,  by  providing  for 
the  conveyance,  holding  and  protection  of  property,  and 
the  creation  of  trusts  for  the  founding,  endowment, 
erection  and  maintenance  within  this  state  of  hospitals 
for  the  relief  of  the  sick  and  for  training  schools  for 
nurses.     Approved  February  19,   1907;  stats.  1907,  p.  10..   591 


784  APPENDIX   INDEX. 

HOURS  OF    LABOR.  Page. 

An  act  to  provide  foi-  a  .day  of  rest  from  labor.  Approved 
February  27,  1893;  stats.  1893,  p.  54 591 

An  act  to  provide  for  a  luncli  liour  for  laborers  in  saw- 
mills, shakemills,  shingle-mills,  and  logging-camps.  Ap- 
proved February  28,  1901;  stats.   1901,   p.   75 595 

An  act  to  regulate  the  work  and  hours  of  employees  en- 
gaged in  selling,  at  retail,  drugs  and  medicines,  and 
compounding  physicians'  prescriptions,  and  providing  a 
penalty  for  the  violation  thereof.  Approved  February  28, 
1905 ;  stats.  1905,  p.  28 59.j 

An  act  regulating  the  hours  of  employment  in  under- 
ground mines  and  in  smelting  and  reduction  works.  Ap- 
proved March  10,  1909;  stats.  1909,  p.  279 597 

INSURANCE. 

An  act  relating  to  life,  health,  accident,  and  annuity  or 
endowment  insurance  on  the  assessment  plan,  and  the 
conduct  of  the  business  of  such  insurance.  Approved 
March  19,  1891;  stats.  1891,  p.  126.     Codified.     (History)..   598 

An  act  to  provide  for  the  organization  and  management  of 
county  tire  insurance  companies.  Approved  April  1, 
1897 ;  stats.   1897,  p.   439 598 

An  act  providing  for  the  organization  and  management  of 
mutual  Are  insurance  companies.  Approved  Mai-ch  19, 
1907;  stats.   1907,  p.  631 604 

An  act  relating  to  life,  health  and  accident  insurance  of 
live  stock  on  the  assessment  plan  and  the  conduct  of 
the  business  of  sucli  insurance.  Approved  March  23, 
1907;  stats.  1907,  p.   952 608 

An  act  to  establish  a  standard  form  of  fire  insurance 
policy  and  to  prevent  variations  therefrom,  excepting 
under  certain  stated  conditions  and  restrictions.  Ap- 
proved March  18,  1909;  stats.  1909,  p.  404 614 

INTEREST. 

See  Brokers. 

LICENSE   TAX. 

An  act  to  enforce  the  collection  of  license  taxes.  Ap- 
proved March  21,  1872;  stats.  1871-2,  p.  539 024 

An  act  relating  to  revenue  and  taxation,  providing  for  a 
license  tax  upon  corporations,  and  making  an  appropria- 
tion for  the  purpose  of  carrying  out  the  objects  of  this 
act.     Approved  March  20,  1905;  stats.  1905,  p.  493 625 

LIMITATION    OF  ACTIONS. 

An  act  respecting  the  limitation  of  actions.  Approved 
March  11,  1872;  stats.  1871-2,  p.  319.  Superseded.  (His- 
tory)        631 

An  act  supplementary  to  an  act  entitled  an  act  defining 
the  time  for  commencing  civil  actions,  passed  April 
twenty-second,  eigliteen  hundred  and  fifty.  Approved 
March  16,  1872;  stats.  1871-2,  p.  401.  Superseded.  (His- 
tory)       631 


APPENDIX    INDEX.  785 

LOANS    ON    PERSONAL    PROPERTY. 

See  Brokers. 

MECHANIC    INSTITUTES. 

See   Chambrrs   of  Commerce. 

MINES  AND   MINING.  Page. 

An  act  for  the  protection  of  miners.  Approved  Marcli  16, 
1S72;   stats.   1871-2,  p.  413 632 

An  act  for  tlie  protection  of  coal  mines  and  coal  miners. 
Approved  March  27,  1874;  stats.  1873-4,  p.  726 633 

An  act  for  the  better  protection  of  the  stockholders  in 
corporations  formed  under  tlie  laws  of  the  State  of 
California,  for  the  purpose  of  carrying  on  and  conducting 
the  business  of  mining.  Approved  Marcli  30,  1874;  stats. 
1873-4,  p.  866.     Codified.     (History) 63.5 

An  act  for  the  further  protection  of  stockholders  in  min- 
ing companies.  Approved  April  23,  1880;  stats.  1880. 
p.  131.     Repealed.     (History) 636 

An  act  to  establish  a  uniform  system  of  mine  bell  signals, 
to  be  used  in  all  tlie  mines  operated  in  the  State  of 
California,  and  for  the  protection  of  miners.  Approved 
March   8,   1803;   stats.    1893,    p.   82 636 

MUNICIPAL    CORPORATIONS. 

An  act  to  provide  for  the  organization,  incorpoi"ation,  and 
government  of  municipal  corporations.  Approved  March 
13,   1883;   stats.   1883,   p.   93 638 

PERSONAL    PROPERTY    BROKERS. 

See  Brokers. 

PUBLIC  WELFARE. 

.See  Health  and  Sanitation ;  Hospitals. 

RAILROADS. 

An  act  to  enable  railroad  companies  to  complete  their  rail- 
roads. Approved  April  1,  1878;  stats.  1877-8,  p.  944.  (His- 
tory)        645 

An  act  to  create  the  office  of  commissioner  of  transporta- 
tion, and  to  define  its  powers  and  duties;  to  fix  the  maxi- 
mum charges  for  transporting  passengers  and  freights 
on  certain  railroads;  and  to  prevent  extortion  and  unjust 
discrimination  tliereon.  Approved  April  1,  1878;  stats. 
1877-8,  p.  969.     Repealed.     (History)    645 

An  act  permitting  and  authorizing  railway  and  other 
corporations,  organized  under  the  laws  of  this  state,  or 
of  any  state  or  territory  of  the  United  States  of  America, 
or  any  act  of  congress  of  tlie  United  States  of  America, 
to  do  business  in  this  state  on  equal  terms.  Approved 
April  3,  1880;  stats.  1880,  p.  21.     Superseded.     (History)..    645 

An  act  to  organize  and  define  the  powers  of  the  board 
of  railroad  commissioners.  Approved  April  15,  1880; 
stats.  1880,  p.  45.     Repealed.     (History) 645 


786  APPENDIX    INDEX. 

RAILROADS— Continued.  Page. 

An  act  to  compel  railroad  corporations,  or  individuals  own- 
ing railroads,  to  operate  their  roads.  Approved  April 
15,  1880;  stats.  1880,  p.  43 646 

An  act  to  provide  for  the  management  and  operation  of 
railroads  above  certain  elevations.  Approved  February 
0,   1897;   stats.   1897,   p.   5 647 

An  act  to  provide  for  the  appointment  of  policemen,  with 
the  powers  of  peace  officers,  to  serve  upon  -the  premises, 
cars  or  boats  of  railroad  and  steamship  companies.  Ap- 
proved March  23,  1901;  stats.  1901,  p.  666 647 

An  act  providing  for  the  organization  of  the  railroad  com- 
mission of  the  State  of  California,  defining  its  powers 
and  duties  and  the  powers  and  duties  of  transportation 
companies,  their  officers  and  employees,  and  defining 
offenses  by  transportation  companies,  their  officers,  em- 
ployees and  other  persons,  and  providing  penalties  there- 
for; and  repealing  an  act  entitled,  "An  act  to  create  the 
office  of  commissioner  of  transportation,  and  to  define  its 
powers  and  duties;  to  fix  the  maximum  charges  for 
transporting  passengers  and  freight  on  certain  railroads, 
and  to  prevent  extortion  and  unjust  discrimination 
therein,"  approved  April  1,  1878,  and  also  repealing  an 
act  entitled  "An  act  to  organize  and  define  the  powers 
of  the  board  of  railroad  commissioners,"  approved  April 
15,  1880.     Approved  March  19,  1909;  stats.  1909,  p.  499...   648 

An  act  requiring  persons,  corporations,  receivers  or  trus- 
tees operating  lines  of  railway  to  furnish  cars  for  ship- 
ment of  freight  upon  written  application  from  shippers 
of  freight  and  providing  a  penalty  and  damages  to  be 
paid  by  such  persons,  corporations,  receivers  or  trustees  to 
shippers  for  failure  to  do  so  and  providing  a  penalty  and 
damages  to  be  paid  to  persons,  corporations,  receivers  or 
trustees  operating  such  railway  lines  by  the  applicant 
or  shipper  for  failure  to  load  or  unload  cars  so  fur- 
nished.    Approved  April  20,  1909;  stats.  1909,  p.  1007 670 

Rules  of  the  railroad  commission.  Adopted  by  the  com- 
mission June  8,  1909 674 

STREET    RAILROADS. 

An  act  to  limit  and  fix  the  rates  of  fares  on  street  rail- 
roads in  cities  and  towns  of  more  than  one  hundred 
thousand  inhabitants.  Approved  January  1,  1878;  stats. 
1877-8,  p.  18 679 

An  act  to  confirm,  ratify,  and  make  valid  ordinances  here- 
tofore passed  by  the  trustees,  council,  or  other  body  in- 
trusted with  the  government  of  any  incorporated  city, 
city  and  county,  or  town,  giving  authority  and  permis- 
sion to  propel  cars  upon  railroad  tracks  laid  through  the 
streets  and  public  highways  of  such  incorporated  city, 
city  and  county,  or  town,  by  electricity.  Approved  Feb- 
ruary 25,  1891 ;  stats.  1891,  p.  12 : 680 


APPENDIX   INDEX.  787 

STREET  RAILROADS— Continued.  Page. 

An  act  requiring  city,  city  and  county,  or  town  author- 
ities to  exact  and  require  from  persons  or  corporations 
seelcing-  permission  and  autliority  to  lay  railroad  tracks 
through  streets  or  public  highways  of  any  incorporated 
city,  city  and  county,  or  town,  a  satisfactory  promise 
and  undertaking  to  permit  and  allow  mail  carriers  in 
the  employ  of  the  United  States  government  at  all  times, 
while  engaged  in  the  actual  discharge  of  duty,  to  ride  on 
the  cars  of  such  railroad  without  paying  fare;  and  to 
make  such  promise  and  undertaking  a  condition  prece- 
dent to  the  granting  of  such  permission  and  authority 
by  such  governing  board.     Approved  February  27,   1893; 

stats.  1893,  p.  44 681 

An  act  to  authorize  cities  and  towns  to  grant  franchises 
for  the  construction  and  maintenance  of  railroads  beyond 
the  limits  of  such  cities  or  towns  leading  to  public  parks 
owned  thereby.  Became  a  law  March  1,  1897;  stats. 
1897,  p.  46 682 

TRADE-MARKS. 

An  act  to  protect  the  owners  of  bottles,  boxes,  siphons, 
and  kegs  used  in  the  sale  of  soda  waters,  mineral  or 
aerated  waters,  porter,  ale,  cider,  ginger  ale,  milk,  cream, 
small  beer,  lager  beer,  weiss  beer,  beer,  white  beer,  or  other 
beverages.    Approved  March  31,  1891;  stats.  1891,  p.  217 683 

TRUST   COMPANIES. 

See  Banks  mid  Bankiny ;  Executors. 

UNITED  STATES. 

An  act  granting  rights  of  way  for  lines,  roads,  structures, 
levees,  canals,  and  excavations  to  the  United  States, 
over  the  public  lands  of  this  state.  Approved  March  21, 
1907;  stats.  1907,  p.  848 687 

WAGES. 

An  act  to  provide  for  the  payment  of  the  wages  of  me- 
chanics and  laborers  employed  by  corporations.  Ap- 
proved March  31,  1891;  stats.  1891,  p.  195.  Unconstitu- 
tional.    (History) 687 

An  act  requiring  every  corporation  doing  business  in  this 
state  to  pay  their  employees,  and  each  of  them,  at  least 
once  in  each  and  every  month,  the  wages  earned  by  such 
employee;  to  limit  the  defenses  which  may  be  set  up  by 
such  corporation  to  assignments  of  wages,  set-off  or 
counter-claims,  or  the  absence  of  such  employee  at  the 
time  of  making  payment,  and  in  case  of  such  absence  the 
wages  are  payable  upon  demand;  to  prohibit  assignments 
of  wages  for  the  purpose  of  evading  the  provisions  of  this 
act  and  agreements  to  accept  wages  at  longer  periods 
than  as  herein  provided  as  a  condition  of  employment; 
to  fix  a  penalty  for  this  violation  of  the  provisions  of 
this  act  by  such  corporation,  and  to  provide  for  the  dis- 
position of  any  fines  recovered  from  corporations  viola- 
ting the  same.  Approved  March  29,  1897;  stats.  1897, 
p.  231.     Unconstitutional.     (History) 688 


788  APPENDIX   INDEX. 

WAREHOUSEMEN.  Pagb. 

An  act  concerning  warehouse  receipts,  and  the  issuing,  sale 

and  transfer  thereof,   and  the  sale  of  goods,   wares  and 

merchandise   stored   in   public   or  private   warehouses   in 

other    states.      Approved    March    20,    1905;    stats.     1905, 

p.   322 688 

An  act  to  make  uniform  the  law  of  warehouse  receipts. 
Approved  March  19,  1909;  stats.  1909,  p.  437 690 

WATER    COMPANIES. 

An  act  to  regulate  and  control  the  sale,  rental,  and  dis- 
tribution of  appropriated  water  in  this  state,  other  than 
in  any  city,  city  and  county,  or  town  therein,  and  to 
secure  the  rights  of  way  for  the  conveyance  of  such 
water  to  the  places  of  use.  Approved  March  12,  1885; 
stats.  1885,  p.  95 707 

An  act  declaring  upon  what  terms  contracts  between  per- 
sons, companies,  associations,  or  corporations  fui-nishing 
water  for  irrigation  to  the  consumers  of  such  water  shall 
be  valid,  and  to  provide  that  such  contracts  shall  be 
deemed  based  upon  sufficient  consideration.  Approved 
March  16,  1901 ;  stats.  1901.  p.  331 712 

An  act  to  provide  for  the  recordation  of  conti-acts  and 
subscription  agreements  to  stock  in  water  users'  asso- 
ciations, organized  in  conformity  with  an  act  of  congress, 
approved  .June  17,  1902,  and  to  regulate  recorders'  fees 
for  filing,  recording  and  indexing  same.  Approvea  March 
20,  1907;  stats.  1907,  p.  749 714 


GENERAL  INDEX. 


EXPLANATION. 

For  general  provisions,  applicable  to  and  governing  all  cor- 
porations, see  general  headings  as  they  occur,  as  "Articles  of 
Incorporation,"  "By-laws,"  "Capital  Stock." 

For  additional  or  exceptional  provisions  respecting  certain 
specified  classes  of  corporations  in  particular,  see  the  respective 
name  headings  as  they  occur  enumerated  in  their  order,  as 
"Agricultural    Fair    Corporations,"    "Banks,"    "Carriers." 

ACCOUNTS.     See    BOOKS   AND    RECORDS. 

ACKNOWLEDGMENTS.  Page. 

Form    of.      C.    C.    §  1190 235 

Of  instruments  by  a  corporation.     C.  C.   §  1161 233 

Proof  to  accompany.     C.  C.   §  118.5 234 

ACTIONS. 
Against  corporations,   where   instituted.      Const.,   Art.   XII, 

§16 15 

Can    not    be    defended    or    maintained    by    corporation    if 

articles  are  not  filed  as  required.     C.  C.   §299 38 

Civil,  against  a  corporation,  service  of  summons.     C.  C.  P. 

§  411 384 

against  directors  and  stockholders  to  recover  penalties  or 

enforce  liabilities.     C.   C.   P.    §359 3S2 

against    officers    of    corporation    on    refusal    to    transfer 

stock.      C.    C.    §324 58 

dissolution   by   state.     C.   C.    §  358 72 

inquiry  into  affairs  of  corporation  in  suit  by  state.     C.  C. 

§358     72 

place  of  trial  in  certain  cases.     C.  C.  P.  §  395 383 

pleadings,  verification  of  by  corporation.     C.  C.  P.  §  446..   386 
publication    of    summons,    in    certain    cases.      C.    C.    P. 

§  412    384 

recovery  of  assessment  on  capital  stock.     C.  C.   §349....     69 

recovery  of  deposits,  no  time  limit.     C.  C.  P.   §348 382 

recovery  of  penalties,   by  purchaser  of  franchise  at  sale 

under  execution.     C.   C.   §  390 86 

recovery  of  stock  sold  for  assessment.     C.  C.  §347 68 

residence  may  be  recorded  for  sei-vice  of  summons.     C.  C. 

§  1163    234 

security  for  costs,  when  required.     C.  C.  P.  §1036 394 

stockholders,  against,  for  recovery  of  debt.     C.  C.  §322..     55 
sue  and   be   sued,    corporate   right   to.     Const.,    art.    XII, 

§4 12 


790  GENERAL    INDEX. 

ACTIONS— Continued.  Page. 

Civil,  sue  and  be  sued,  powers.     C.  C.  §354,  subd.  2 70 

time   for   commencement  of,    against   directors   or   stock- 

liolders  for  enforcement  of  liability.     C.  C.  P.  §359 382 

time  for  commencement  of,  against  directors,  to  recover 

stoclc  sold  for  assessment.     C.  C.  §  347 6S 

time    for    commencement    of,     against    directors,     wlien 

statute  of  limitations  not  to  apply.     C.  C.  §309 4fi 

usurpation  of  francliise.     C.  C.  P.   §803 393 

Criminal,  against  corporations,  summons.     Pen.  C.  §1390..   433 

examination  of  charge.     Pen.   C,  §  1393 434 

form  of  summons.     Pen.  C.   §  1391 434 

indictment,  appearance  and  plea.     Pen.  C.   §1396 435 

prosecution  of.     Pen.   C.    §  1395 434 

return  of  depositions.     Pen.  C.  §  1394 434 

summons,  how  and  when  served.     Pen.  C.  §  1392 434 

warrant  of  arrest,  summons  in  case  of  corporation.     Pen. 

C.  §  1427 435 

when  fine  imposed,  collection  of.     Pen.  C.  §1397 435 

ADMINISTRATORS.       See     BANKS.       See,     also,     Appendix 
Index,    BANKS   AND    BANKING;    EXECUTORS. 

ADVERTISEIVIENTS.     See,   also,    REPORTS;   also,   Appendix 
Index,    FRAUDULENT    REPORTS. 
Flag  of  the  United  States,  not  to  be  used.     Pen.  C.   §  310..   409 

Misrepresentation  of  quality  of  goods.     Pen.  C.   §  654a 432 

Names,   fraudulent  use  of.     Pen.   C.   §559 424 

Publication  of  false  reports.     Pen.  C.  §  564 426 

AFFAIRS.     See,   also,    BUSINESS. 

Affairs  and   business  may  be  inquired  into  on  information 

of  attorney  general.      C.   C.   §  358 72 

Affairs   and   conditions   of  corporations   may  be   examined 

by  legislature.     C.   C.   §  383 84 

of  corporations,  may  be  inquired  into  at  request  of  gov- 
ernor.    C.   C.    §  382 84 

AFFIDAVITS.      See  ACKNOWLEDGMENTS. 

AGENTS.     See,  also,   FOREIGN    CORPORATIONS. 

Appointment   of,    corporate   power   to    do    so.      C.    C    §  354, 

subd.    5    70 

AGRICULTURAL   DISTRICTS.     See  Appendix   Index,   AGRI- 
CULTURAL  ASSOCIATIONS. 

AGRICULTURAL  FAIR  CORPORATIONS. 

By-laws,   must  provide   for  charges  and  membership  fees. 

C.    C.    §622 196 

Capital  stock  not  to  be  held.     C.  C.  §  622 196 

Indebtedness,  limitations  on.     C.   C.   §621 195 

Non-profit  in   character.     C.   C.   §622 196 

Property,  quantity  which  may  be  held.     C.  C.  §  620 195 

See,  also.  Appendix  Index,  Agricultural   Associations. 

ANIMALS.      See    CHILDREN    AND    ANIMALS.      See,    also, 
Appendix    Index,    ANIMALS. 


GENERAL    INDEX.  791 

ARTICLES   OF    INCORPORATION.  Page. 

Acknowledged   and  subscribed,   how  and  by  whom.     C.   C. 

§293    36 

Amendment  of,  and  filing  of  amendment.     C.  C.  §  362 78 

Actions  in   relation   to   property  can   not  be   maintained   or 
defended  unless  certified  copies  filed  in  counties  where 

property  is  situated.     C.  C.  §  299 38 

Certified,  are  prima  facie  evidence.     C.  C.  §  297 38 

Certified  copy,  a  certified  copy  of,  may  be  filed  to  replace 

original  lost  or  destroyed.     C.  C.  §  297a 38 

when   certified  by  county  clerk  and  filed  with   secretary 

of  state.     C.  C.  §  29t) 37 

when  certified  by  county  clerk,   fee  for  certifying.     Pol. 

C.   §  4300a    372 

when   certified   by   secretary   of   state,    and   filed   in   each 

county  where  property  is  situated.     C.  C.  §  299 38 

when  copy  made  by  secretary  of  state,   fee  for  making. 

Pol.  C.  §  416,  subds.  1  and  3 261 

when  copy  supplied  by  applicant,   fee  for   making.     Pol. 

C.  §  416,  subds.  2  and  3 261 

County    clerk,    fees    for    certifying    to    copy    of.      Pol.    C. 

§  4300a    372 

fees  for  filing  and  indexing.     Pol.  C.  §  4300a 372 

Definition   of.     C.   C.   §  289 33 

Error  in  filing,  how  corrected.     C.   C.   §363 79 

Filed  in  each  county  where  property  is  held.     C.  C.  §  299..     38 
with  county  clerk  and  secretary  of  state.     C.  C.  §  296....     37 
Forms  for.     See  Appendix  Index,    Forms   and    Precedents. 
Name  must  not  be  taken  closely  resembling  any  existing 

corporation.     C.  C.   §  296 37 

Original  to  be  filed  witli  county  clerk  where  principal  place 

of  business  is  situated.     C.  C.  §  296 37 

certified  copy  to  be  filed  with  secretary  of  state.     C.  C. 

§  296 37 

certified  copy  thereof  to  be  filed  in  each  county  where 

property  is  situated.     C.  C.   §  299 38 

Restoration  of  when  lost  or  destroyed.     C.  C.  §  297a 38 

See,  also.  Appendix  Index,  Certificates. 
Secretary    of    state,    fee,    affixing    certificate    and    seal    of 

state.     Pol.  C.  §  416,  subd.  3 261 

fee  for  comparing.     Pol.  C.  §  416,  subd.  2 261 

fee  for  copying.     Pol.  C.  §  416,  subd.  1 261 

fee  for  filing  amended  articles.     Pol.  C.  §  416,  subd.  10...    261 
fee   for   filing,    apportioned   to    amount    of    capital    stock. 

Pol.   C.   §  416,   subd.   4 261 

fee  for  recording.     Pol.  C.   §416,  subd.   5 261 

ASSESSIVIENTS.      See,  also,   CAPITAL  STOCK. 

Action  for  recovery  of  stock  sold  for.     C.  C.  §  347 68 

Capital  stock,  assessments  on.     C.  C.  §  331 63 

Contents  of  notice.     C.  C.   §  338 66 

Delinquent  notice.     C.   C.   §  337 65 

sale,  extension  of  time.     C.   C.  §  S4.^) 68 


792  GENERAL    INDEX. 

ASSESSMENTS— Continued.  Page. 

Failure  of  publication  not  to  invalidate.     C.  C.  §346 68 

Limitation  of,  on  capital  stock.     C.  C.  §332 63 

Notice  of.     C.  C.   §  335 64 

affidavit  of  pulalication.     C.  C.  §  348 69 

gives  jurisdiction  to  sell  stock.     C.  C.   §340 66 

time  of  publication.     C.  C.  §  339 66 

Not  to  be  levied,  when.     C.  C.  §  333 64 

Order  levying,  what  must  contain.     C.  C.   §334 64 

Publication  and  service  of  notice.     C.  C.  §  336 65 

Sale  of  stock  for,  corporation  may  purcha.se.     C.  C.  §343...  67 

of  stock  for,  to  be  at  public  auction.     C.  C.  §  341 66 

of  stock   to  pay,   highest  bidder  to  be  purchaser.     C.   C. 

§  342    67 

waivure    of    sale    and    proceedings    to    collect    by    action. 

C.   C.   §  349    69 

Stock  purcliased  by  corporation  at  sale  for,  disposition  of. 

C.    C.    §344 67 

Taxation*-  property,  assessment  for  purposes  of,  lay  assess- 
ors and  laoard  of  equalization.     See  Property;  Taxation. 

ASSOCIATIONS    AND    COMPANIES. 

Included  in  term  "corporations."     Const.,   art.  XII,   §4 12 

ATTACHMENT   AND    EXECUTION. 

Attachment,    of    property,    real    and    personal.      C.    C.    P. 

§  542    388 

of  shares  of  stock.     C.   C.   P.   §  541 388 

Execution,  sale  under,  of  property.     C.  C.  P.  §  688 391 

sale  under,  of  shares  of  stock.     C.  C.  P.  §  688 391 

what  exempt  from  sale  under.     C.  C.  P.  §690 392 

See.  also.  Capital  Stock;  Property. 

ATTORNEY  GENERAL. 

Action    against  corporation   for   unlawful   holding  of   fran- 
chise.     C.    C.    P.    §  803 393 

Building  and   loan   associations,   action  against,   for  failure 

to  report.      C.   C.   §  645 206 

Co-operative    agricultural,    viticultural,    and    horticultural 

associations,    inquiry   into   business   of.     C.   C.   §653s...    225 

Co-operative   business   associations,   action   against.     C.   C. 

§  G53j     219 

inquiry  into  affairs  of.     C.  C.  §  653k 219 

Co-operative  corporations,  non-profit,  inquiry  into  business 

of.     C.  C.  §  653z 230 

Examination  of  affairs  of  corporations.     C.  C.  §382 84 

Foreign    corporations,    action    against,    for    failure    to    file 

articles  of  incorporation.     C.  C.  §  410 93 

Governor   may   require   to   inquire   into   affairs   of  corpora- 
tion.    Pol.  C.  §  380,  subd.  G 260 

Information    of,    and    inquiry    into    affairs    of    corporation. 

C.    C.    §  358 72 

Insurance  commissioner  to  submit  documents  for  examina- 
tion.     Pol.   C.    §  596a 274 


OENEKAL   1>UEX.  793 

ATTORNEY   GEN  ERAL— Continued.  Page. 

Insurance    companies,    action    against    insolvent.      Pol.    C. 

§  604 281 

Investment  companies,  action  to  dissolve.     Pol.  C.  §  635d. .   304 
defense  of  action  against  state  treasurer.     Pol.  C.  635e..   304 

examination  of.     Pol.  C.  §  6351 306 

Railroad    companies,    collect    penalty    from    in    certain    in- 
stances.    C.  C.   §  494 139 

Treasurer  of  state,  defense  of  action  against,  for  recovery 

of  taxes.     Pol.  C.  §  3669 362 

AUTOIVIOBILES. 

Insurance  of.     See  Insurance,  Team  and  Veliicle. 
Roads  for,  and  otlier  horseless  veliicles.     See   Roads,  Toll; 
Roads,    Wagon. 

BANK     COMMISSIONER.       See,     Appendix     Index,     BANKS 
AND    BANKING. 

BANKS.      See,    also,    BANKS.    SAVING    AND    LOAN;    also, 
Appendix     Index,     BANKS    AND     BANKING;     EXEC- 
UTORS. 
Actions  against,  to  recover  deposits,  no  time  limit.     C.  C.  P. 

§  348    382 

Administrators.     See   Executors. 

Amount  of  capital   stock   required  to  be  subscribed  before 

authorized  to  do  business.    C.  C.  §  290a 35 

Application   of   provisions    for   co-operative   business   asso- 
ciations.    C.   C.    §  6531 219 

of    provisions    for    non-profit    co-operative    corporations. 

C.    C.    §  653za 230 

Bank    paper,    unlawful    substitution    as    money.      Pen.    C. 

§  648    432 

Bullion,  gold,  purchased  by,  certain  provisions  not  to  apply. 

Note  to  Pen.  C.  §  343 41 1 

Capital  stock,  amount  actually  paid  up  must  be  published. 

C.  C.  §  583a  167 

amount  which  must  be  paid  in  before  commencing  busi- 
ness.    C.  C.   §  290a 35 

manner  of  issue.    C.  C.  §  300 40 

Circulate  nothing  but  lawful  money.     Const.,  art.  XII,  §  5..     12 
Dissolution.     See,   Appendix  Index,    Banks  and    Banking. 
Deposits,  receiving  of,  by  insolvent  banks.     Pen.  C.  §562..   425 

unclaimed,' statement  of  required.     C.  C.   §  583b 168 

Dividends,  how  and  when  declared.     C.  C.  §  583 IfiT 

upon  what  paid.     C.  C.  §  300 40 

Executors.     See,   also.   Appendix  Index,    Banks   and    Bank- 
ing;  Executors. 
corporations  to  act  as,  appointment  by  courts  in  probate 

matters.      C.   C.   P.    §  1348 403 

corporations  to  act  as,  capital  stock  required  to  be  paid 

in  before  commencing  business.     C.  C.  §  290a 35 

corporations    to    act    as,    right    to    use    word    "trust"    in 

name.     C.   C.    §290% 35 

when  guilty  of  embezzlement.     Pen.  C.  §  506 421 

34 — CL 


704  GE.NEliAL    IjXUEX. 

BANKS— Continued.  Page. 

Fraudulent    appropriation    of    property,    penalty.      Pen.    C. 

§  506    421 

Formed  under  general  laws.     Const.,  art.  XII,   §.5 12 

Insolvent  bank,  receiving  deposits.     Pen.  C.   §562 425 

Name,    of    friendly    society,    not    to    be    adopted    or    used. 

C.  C.  P.   §1276 401 

Persons   not    incorporated    must   show   true   names.      C.    C. 

§  582    166 

Property,    taxation    of,    statement    required    by    assessor. 

Pol.    C.    §  3629 353 

Public    money    may    be    deposited    witli.      Const.,    art.    XI, 

§  16i,{,    7 

Records,  certain,  accessible  to  public.    C.  C.  §  321 52 

of  meetings  for  issuance  of  capital  stock.     C.  C.  §  300....     40 
Trust    companies.      See,    also.    Executors.      See,    also.    Ap- 
pendix  Index,    Banks   and    Banking;    Executors. 
amount  of   capital   stock   which   must  be   paid   in   before 

doing  business.     C.   C.   §  290a 35 

"trust"  or  "trustee"  not  to  be  used  as  part  of  corporate 

name  unless  authorized.     C.  C.   §  290^ 35 

Trustees.     See  Executors. 

Unclaimed  deposits,  statement  of,  required.     C.  C.  §583b..   168 

BANKS,   NATIONAL. 
Assessment    of    shares,    notice    to    shareholders.      Pol.    C. 

§  :!610    347 

Property,    other    than    real    estate,    exempt    from    taxation. 

Pol.    C.    §  3608 -.346 

Shareholders   in,   assessed   on  valuation   of   stock.      Pol.    C. 

§  3609    346 

Shares  of  stock   in,    assessment   and    taxation   of.      Pol.    C. 

§  3608    346 

of  stock  in,  collection  of  assessment.     Pol.  C.  §  3610 347 

See,  also,  Appendix  Index,    Banks  and   Banking. 

BANKS,    SAVING    AND    LOAN.      See,    also,    BANKS.      Also, 
Appendix   Index,    BANKS  AND    BANKING. 
Bonds  purchased  by,  must  be  of  certain  description.     C.  C. 

§  574 163 

Capital   stock,   amount  paid  up  must  be  published.     C.   C. 

§  583a    167 

certificates  to  issue.     C.   C.   §  572 ■. 163 

Certificates  of  deposit,  transferable.     C.  C.  §576 165 

Create  debts,  phrase  not  to  apply  to  certain  transactions. 

C.    C.    §  579 166 

Deposits,  certificates  of.     C.   C.   §  576 165 

unclaimed,  statement  of  required.     C.  C.  §  583b 168 

unclaimed,    when    application    for    dissolution.      C.    C.    P. 

S  1234 400 

Depositors,  have  priority  of  security.     C.  C.   §573 163 

Directors  or  officers   must  not  bori-ow  deposits  oi-  become 

indorsers.     C.   C.    §  578 166 

Dissolution,  application  for.     C.  C.  P.  §1234 400 


OEXERAL   IKDEX.  795 

BANKS,   SAVING  AND   LOAN— Continued.  Page. 

Dividends,  liow  declared.     C.   C.    §573 163 

how  and  when  declared.     C.  C.  §  ■'iSS 167 

unclaimed,  at  time  of  application  for  dissolution.     C.  C  P. 

§  1234 400 

Funds  may  be  loaned  and  invested.     C.  C.   §  571 162 

Loans,   limitation  of.      C.   C.    §571 162 

on  mining  stock,  prohibited.     C.  C.   §  581 166 

on  real  estate,  limitation  of.     C.  C.  §  581 166 

Minor   children    may    make    deposits    and    draw    dividends. 

C.    C.    §  575 164 

Officers  or   directors   must  not   borrow   deposits   or  become 

Indorsers.     C.   C.    §  578 166 

Officer  overdrawing:  account.     Pen.  C.   §  561 425 

Persons   not    Incorporated   must  show   true   names.      C.    C. 

§  582    166 

Property,  acquirement  and  handling  of.     C.  C.  §  574 163 

Reserve  fund  to  be  created.     C.  C.  §  583 167 

Stockholders,  security  of.     C.  C.   §  573 163 

Surplus  fund  to  be  created.     C.  C.  §  583 167 

Unclaimed  deposits,  statement  of  required.     C.  C.  §  583b...   168 
Women,  married,   inay  make  deposits  and  draw  dividends. 

C.    C.    §  575 164 

BENEVOLENCE    AND    CHARITY.      See.    also,    CO-OPERA- 
TIVE      BUSINESS       ASSOCIATIONS;       NON-PROFIT 
CORPORATIONS;    ORPHAN    ASYLUMS;    RELIGIOUS 
CORPORATIONS. 
Business,    place   of,   need   not   be   maintained.      Const.,    art. 

XII,    §14 14 

Co-operative    business    associations,    organized    as.      C.    C. 

§  G53b    214 

Directors,    election    of,    certain    conditions    not    to    apply. 

C.    C.    §  307 45 

number  of.     C.   C.   290,   subd.   5 33 

number  of  and  qualification.     C.  C.   §  305 44 

Hall  associations,  directors  of,  number.     C.  C.  §305 44 

Name,  change  of,  how  effected.     C.  C.  P.  §  1276 401 

Records  of.  reference  to.     C.  C.  §  378 83 

BEQUESTS. 

Limitation  of  dispositions.     C.  C.   §1275 236 

To  corporations,  restrictions  on.     C.  C.   §1313 236 

BICYCLES    AND    MOTORCYCLES. 

Insurance   of.      See    Insurance,    Team    and    Vehicle. 
Paths  and  roads  for.     See   Roads,   Toll;   Roads,   Wagon. 

BOARD     OF     EQUALIZATION,     STATE.       See     EQUALIZA- 
TION. 

BOARDS    OF     TRADE.       See     COMMERCE,     TRADE.     AND 
MECHANIC    ARTS. 

BOND     INVESTMENT     COMPANIES.       See     INVESTMENT 
COMPANIES. 


796  GENERAL   INDEX. 

BONDS   AND    INDEBTEDNESS.  Pase. 

Bonds,  are  property,  subject  to  taxation.     Const.,  art.  XIII, 

§1    19 

defined   as   property,    for   purposes   of    taxation.      Pol.    C. 

§  3617    348 

fraudulent  exchange  of.     Pen.  C.  §  560,  subd.  5 424 

issuance  of,  how  effected.     C.  C.  §  359 72 

issuance  of,  regulations.     Const.,  art.  XII,  §11 14 

lost  or  destroyed,  duplicates  may  be  obtained,  how.     C.  C. 

§329    61 

Bonded   indebtedness,  consolidation  of.     C.   C.   §  359,   subds. 

6,  7,   and  8 72 

certificate  of  prepared.     C.  C.  §  359,  subd.  7 72 

certificate  of  to  be  filed.     C.  C.  §  359,  subd.  8 72 

increase  of,  regulation.     Const.,  art.  XII,  §  11 14 

increasing  or  diminishing.     C.  C.   §  359 72 

Forms   for   certificates.      See   Appendix   Index,    Forms    and 
Precedents. 
fee  for  filing  certificates  in  relation  to.     Pol.  C.  §  416 261 

BONDS,     SURETY.        See     INSURANCE,     FIDELITY     AND 
SURETY;    also.    Appendix    Index,    BONDS. 

BOOKS    AND    RECORDS. 

Accounts,  frauds  in  keeping.     Pen.  C.  §  563 425 

Books  and  records,  adjourned  meetings,  keeping  of  record. 

C.  C.   §  312 49 

fraudulent  keeping  of.     Pen.   C.    §  563 425 

lost  or  destroyed,  how  replaced.     C.  C.  §  365 80 

See,  also,  Certificates, 
refusal   of   inspection    by    member   or   stockholder.      Pen. 

C.    §565 426 

required  to  be  kept.     C.  C.  §  377 83 

stock  and  transfer  book.  C.  C.  §  378 83 

BRIDGES     AND     FERRIES.       See,     also,     Appendix     Index, 
BRIDGES. 

Annual  report  to  supervisors.     C.  C.  §  530 153 

to  supervisors,  further  provisions.     Pol.  C.   §2847 324 

Application  for  authority,  notice  of.     Pol.  C.  §  2853 326 

Application     for    construction,     action    when    majority    of 

supervisors  are  interested.     Pol.  C.  §4323 374 

made  to  supervisors.     Pol.  C.  §  2843 322 

notice  of.     Pol.  C.  §  2844 323 

regulations  by  supervisors.     Pol.  C.  §  2845 323 

supervisor  interested  not  to  act.     Pol.  C.  §2852 325 

Application  of  title  to  natural  persons.     C.  C.   §531 154 

Assessment  of  property  for  purposes  of  taxation,  how  di- 
vided between  counties.     Pol.  C.  §  3643 355 

Banks  of  streams  or  waters  to  be  kept  in  repair.     Pol.  C. 

§  2858    327 

Bond,  conditions  of,  and  execution.     Pol.  C.  §2850 325 

fixed  by  supervisors.     Pol.   C.   §  2845 323 

Companies,  not  to  be  chartered  or  licensed  by  legislature. 

Const.,  art.   IV,   §  25,   subd.   25 4 


GENERAI,   INDEX.  797 

BRIDGES  AND   FERRI ES— Continued.  Page. 

Construction,     and    operation,     regulated     by    supervisors. 

Pol.   C.    §  2845 323 

must  be  commenced,  and  completed,  when.     C.  C.   §  529.   152 
Corporate  existence   terminates,    under   certain   contingen- 
cies.    C.   C.    §  529 152 

Estimate  to  determine  license  tax  and  rate  of  tolls.     Pol. 

C.    §  2848 324 

Franchise,    application    for,    when   majority  of   supervisors 

are    interested.      Pol.    C.    §  4323 374 

expiration   by  limitation,   becomes  public  highway.     Pol. 

C.    §2619 310 

power  of  supervisors   to  grant.     Pol.   C.    §  4041,   subds.   4 

and   32 369 

License,  issued  by  clerk  of  supervisors.     Pol.  C.   §  2849 325 

License  tax,  annually  fixed  by  supervisors.     Pol.  C.  §  3378.   344 
delinquent,  collection.     See  Appendix  Index,  License  Tax. 

fixed  by  supervisors.     Pol.  C.  §  2845 323 

how  paid,    when  uniting  two  counties.     Pol.  C.   §2851 325 

increase  or  diminution  of.     Pol.  C.   §2846 323 

rate  of,  inquiry  by  supervisors.     Pol.  C.  §2848 324 

revenues  from,  how  applied.     Pol.  C.  §2857 326 

Mile  limit,  between  bridges  or  ferries.     Pol.  C.  §  2853 326 

Operation  must  commence,  when.     C.  C.  §529 152 

Owner  of  land  entitled  to  preference  in  authority   to  con- 
struct.    Pol.  C.  §  2854 326 

Property,  where  assessed  for  purposes  of  taxation.     Pol.  C. 

§  3643     355 

Report  to  supervisors  annually.     Pol.  C.  §2847 324 

Right  of  way,  acquirement  of  lands.     Pol.  C.  §  2855 326 

Toll,  authority  to  take  must  be  obtained.     C.  C.  §528 152 

increase  or  diminution  of.     Pol.   C.   §2846 323 

rate  of,  fixed  by  supervisors.     Pol.   C.   §2845 '. . .   323 

rate  of,  inquiry  by  supervisors.     Pol.  C.  §2848 324 

rate  of,  to  be  posted.     Pol.  C.  §  2856 326 

taking  without  authority.     Pen.  C.   §  386 417 

Toll    bridge,    animals,    number    of,    which    may    be    driven 

upon.      Pol.    C.    §  2876 329 

application  for  authority  to  construct.     Pol.  C.  §2870....   327 

application,  hearing  of.     Pol.  C.  §  2871 328 

completion  of  bridge,  certificate  to  issue.     Pol.  C.  §  2878..   329 

county  may  purchase  bridge.     Pol.  C.   §2881 330 

draws  or  swings,  when  navigable  waters.  Pol.  C.  §  2875. .  329 
driving  over  faster  than  a  walk,  penalty.  Pen.  C.  §  388.  418 
fast    driving    over    bridge,    notice    of    penalty.      Pol.    C 

§  2938    337 

highways,  public,  use  of.     Pol.  C.   §2874 328 

license   tax,   rate   to  be   prescribed   by   supervisors.     Pol. 

C.  §  2878 329 

navigable   streams,    channels   to   be  kept   clear.      Pol.    C. 

§  2877    329 

penalty  for  avoiding  tolls.     Pol.  C.   §2880 330 

persons  exempt  from  paying  toll.     Pol.  C.  §  2879 330 

regulations  by  supervisors.     Pol.  C.   §2876 329 

requirements  for  construction.     Pol.  C.   §2873 328 


798  GENERAL   INDEX. 

BRIDGES   AND    FERRl ES— Continued.  Page. 

Toll  bridge,  .sale  of  bridge  to  county.     Pol.  C.  §  2881 330 

supervisors,  to  grant  authority.     Pol.  C.  §2872 328 

toll,  avoidance  of,  penalty.     Pen.  C.   §389 418 

toll,    rate   of    to    be    prescribed   by    supervisors.      Pol.    C. 

§  2878 329 

weight  which  may  be  put  upon.     Pol.  C.   §2876 329 

Toll    ferry,    application    for    construction,    to    supervisors. 

Pol.  C.   §  2892 330 

authority   to  construct,   granted  by  supervisors.     Pol.   C. 

§  2893    331 

notice  of  application  for  construction.     Pol.  C.   §  2892 330 

notice  of  application  for  construction,   proof  of.     Pol.   C. 

§  2893    331 

not   to   be   chartered   or  licensed   by  legislature.     Const., 

art.  IV,  §  25,  subd.  25 4 

penalties,  disposition  of.     Pol.  C.  §  2895 332 

regulations  by  supervisors.     Pol.  C.  §  2894 331 

toll,  avoidance  of,  penalty.     Pen.  C.   §389 418 

violation    of    conditions    of    keeping,    penalty.      Pen.    C. 

§  387     ; 418 

BROKERS.      See,  also,  BROKERS,  PERSONAL    PROPERTY. 
Classification    of,    for    county    license    purposes.      Pol.    C. 

§  3379 344 

License  tax  imposed   upon.      Pol.   C.    §3379 344 

BROKERS,   PERSONAL   PROPERTY.     See  Appendix    Index, 
BROKERS. 

BUILDERS.  ' 

iVIechanical    appliances,    safety    of,    for    those    engaged    in 

structural  work.     Pen.  C.  §  402c 418 

BUILDING  AND   LOAN   ASSOCIATIONS.     See,  also.  Appen- 
dix  Index,    BUILDING  AND   LOAN   COMMISSIONERS. 

Annual  report  of  association.     C.   C.   §  645 206 

Application    of   provisions   for   co-operative    business   asso- 

riations.     C.   C.   §  6531 219 

of    provisions    for    non-profit    co-operative    corporations. 

C.  C.   §  653za :   230 

Arrears  in  payments,  default,  and  forfeitures.     C.  C.  §  639.   203 
Articles    of     incorporation,     amended     on     reincorporation. 

C.    C.    §  648a 208 

what    shall    state.      C.    C.    §  633 199 

Associations  defined.   C.   C.   §648 207 

subject  to  state  control.     C.  C.  §  644 206 

Bonds  upon  which  loans  may  be  made  or  in  which  funds 

may  be  invested.     C.  C.  §  647 207 

Capital  stock,  classification  of.     C.  C.   §  634 200 

e,xemption  from  attachment  or  execution.  C.  C.  P.   §  690, 

subd.   19  392 

exempt  from  execution,   to  one   thousand  dollars.     C.   C. 

§  643 205 

of  what  shall  consist.     C.  C.  §  634 200 

maturity  of  and  order  of  payment.     C.  C.  §  636 202 


GENKKAL   liNUEX.  799 

BUILDING   AND   LOAN   ASSOCIATIONS— Continued.  Page. 

Capital  stock,  various  forms  of.     C.  C.   §  648a 208 

Definition  of  "building  and  loan  associations."     C.  C.  §  648..  207 
Directors,  a  majority  of,   may  be  selected  from  holders  of 

guarantee  stock.     C.  C.  §  634 200 

Dividends,  on  reserve  fund.     C.  C.  §  641 204 

Foreign  corporations,  deposit  required  from.     C.  C.  §646...  207 
See,  also,  General  Index,  Foreign  Corporations. 

Formation  and  powers  of.     C.   C.   §  633 199 

with  or  without  guarantee  or  capital  stock.     C.  C.  §  648a.  208 

Interest  on  loans,  security,  and  repayment.     C.   C.   §638...  203 

Investments  in  bonds.     C.   C.   §647 207 

Loans,  arrears  in  payments  on.     C.  C.  §  639 203 

interest  on,  security,  and  repayment.     C.  C.  §638 203 

restrictions  on.     C.   C.    §  637 202 

upon  bonds.     C.  C.   §  647 207 

Membership,  qualifications  for.     C.   C   §643 205 

Minor,  may  hold  stock.     C.  C.   §  643 20.5 

Profits  and  losses.     C.  C.   §  641 204 

Property,  real,  purchase  of.    C  C.  §  640 204 

Reincorporation  of  existing  associations.     C.  C.  §  64Sa 208 

Report,   annual,   of  association.     C.   C.   §645 206 

Reserve  fund.     C.  C.   §  641 204 

Retiring  of  free  shares.     C  C.   §  635 201 

Stockholders,  withdrawal  of.     C.  C.  §  642 205 

BUILDING  AND  LOAN  COMMISSIONERS.    Appendix  Index. 

BUSINESS. 

Affairs    and    conditions    may    be    inquired    into    by    state. 

C.    C.    §§382,    3<S3 84 

Commenced  within  one  year.    C.  C.  §  358 72 

Conducted  liy  directors.     C.  C.   §  305 44 

Inquiry  into,  by  attorney  general.     C.  C.  §  358 72 

Limitation  of.     Const.,  art.  XII,  §  9 13 

Place  of,  must  be  maintained.     Const.,  art.  XII,  §  14 14 

Principal  place  of,  articles  of  incorporation  must  set  fortli. 

C.  C.   §  290 33 

how  changed.     C.    C.    §  321a 53 

Record  of,   to  be  kept.     C.  C.  §  377 S3 

Resumption  of,  prior  to  suit  for  dissolution.     C.  C.  §358...  72 

Transfer  of,  as  a  whole.     C.  C.  §  361a 77 

BUTTER. 

Renovated  or  process,  sale  of,  regulated.     Pen.   C.   §383a..  417 

BY-LAWS. 
Adopted,   a  code  of,   must  be,   within   certain   time.     C.   C. 

§  301    42 

certified  and  opened  for  public  inspection.     C.  C.  §  304...  43 

Amendment  or  repeal  of.     C.  C.   §  304 43 

Contents  of.     C.  C.   §  303 13 

may  provide   for  issuance   of   certificates   for  stock   prioi- 

to  full  payment.     C.  C.   §  323 57 

Corporate  power  to  make.     C.  C.  §  354,  subd.  6 70 


800  GENERAL   IMJEX. 

BY-LAWS— Continued.  Page. 

New,  adopted,  record  must  be  made.     C.  C.  304 43 

Repeal,  must  be  recorded.     C.  C.   §  304 43 

Violation    of,    penalty    may    be    prescribed.      C.    C.    §  303, 

subd.  7  43 

CANAL    COIVIPANIES.       See    WATER    AND    CANAL    COM- 
PANIES. 

CAPITAL    STOCK.      See,    also,    ASSESSMENTS;    STOCK- 
HOLDERS. 
Action   for  recovery  of,   wlien   sold   for  assessment.     C.   C. 

§347    68 

limitation  of  time  for.     C.  C.  P.  §  341 381 

Amount  of,  articles  must  set  forth.     C.  C.  §  290,  subd.  6 33 

subscribed,  articles  to  set  forth.     C.  C.  §  290,  subd.  7 33 

which  must  be  represented  at  meetings.     C.  C.  §312 49 

Assessment,  action  by  directors  for  recovery.     C.  C.  §  349..  69 

directors  may  levy.     C.  C.   §  331 63 

limitation  of.     C.  C.  §  332 63 

Attachment  and  sale  of  shares  under  execution.     C.  C.   P. 

§  541 388 

how  effected.     C.  C.  P.  §  542,  subd.  4 388 

sale  under  execution.     C.  C.  P.  §  688 391 

what  exempt  from.     C.  C.  P.  §  690 392 

Buying  or  selling,  in  stock  board,  regulated  by  legislature. 

Const.,   art.   IV,    §  26 5 

Certificate  book,  lost  or  destroyed,  restoration.     C.  C.  §  365  80 

Certificates,  issuance  of,  on  what  terms.     C.  C.  §  323 57 

lost  or  destroyed,  how  replaced.     C.  C.  §  328 60 

Change   of  principal   place   of  business,    consent   necessary 

of  holders  of  two  thirds.     C.  C.  §  321a 53 

Classification  of  common  or  preferred  in  articles  of  incor- 
poration.    C.   C.   §  290,  subd.  6 33 

Common,  classification  of,  in  articles.     C.  C.  §  290,  subd.  6.  33 
Contracts  for  purchase  or  sale  of,  without  intention  to  de- 
liver, void.     Const.,  art.  IV,  §  26 5 

Cumulative  voting  at  elections  of  directors.    C.  C.  §  307. ...  45 
Deceased  person,  estate  of,  stock  owned  by  may  be  repre- 
sented,  how.     C.   C.   §  313 50 

Decrease  of,  to  amount  less  than  indebtedness,  prohibited. 

C.   C.   §  359,   subd.  5 72 

Directors  must  be  shareholders.     C.  C.  §  305 44 

Division  and  distribution  of,  when  authorized.     C.  C.  §  309.  46 

Fee  for  filing  certificate  of  increase.     Pol.  C.  416,  subd.  7..  261 

for  filing  certificate  of  decrease.     Pol.  C.  §  416,  subd.  8...  261 
for    issuing    certificate    of    filing    Increase    or    decrease. 

Pol.   C.   §416,   subd.   12 261 

Fictitious  buying  or  selling  of,  prohibited.     Const.,  art.  IV, 

§  26    5 

Form     for    increase    or    decrease.       See    Appendix    Index, 

Forms  and  Precedents. 
Fraudulent    disposition   of.      Pen.    C.    §  560,    subds.    2,    3,    4, 

and  5 424 

increase  of.     Pen.  C.  §  558 423 

subscription  for.     Pen.  C.  §  557 423 


GENERAL  INDEX.  801 

CAPITAL   STOCK— Continued.  Page. 

Highest  bidder  to  be  purcliaser,  wlien  sold  for  assessment. 

C.   C.   §  342 67 

Increase  of,    regulation.     Const.,    art.   XII,    §11 14 

or   decrease   of,    by    directors,    only   as   provided.      C.    C. 

§  309 46 

or  decrease,  certificate  of  to  be  filed,  where.    C.  C.  §  359, 

subd.  8 ^ 72 

or  decrease,  form  for.     See  Appendix  Index,   Forms  and 
Precedents, 
or  decrease,  notice  of  meeting  to  be  given  and  publica- 
tion made.     C.  C.   §  359 72 

or  decrease,   not  to  be  effected  by  amending  articles  of 

incorporation.     C.  C.  §  362 78 

or    decrease,    two-thirds    vote    of    stockholders    required. 

C.   C.  §  359,  subd.   1 72 

Increasing    or    diminishing,     division    or    distribution,     by 

directors,  liability  for  unlawful  act.    C.  C.  309 46 

manner  of  effecting.     C.  C.  §  359 72 

Insane   person,   estate   of,    stock  owned   by   may   be   repre- 
sented,  how.     C.   C.   §  313 50 

Issuance  of,  regulations.     Const.,  art.  XII,   §  11 14 

Issued  only  for  valid  consideration.     C.  C.  §  359 72 

Jurisdiction    to   sell  for  assessment  is   acquired   by  notice. 

C.   C.   §  340 66 

Lost    or    destroyed    certificates,    court    may    order    new    or 

duplicate.     C.  C.   §  328 60 

Margin,  sale  of  stock  on,  prohibited.     Const.,  art.  IV,  §  26..       5 

Married  woman  may  transfe-r.    C.  C.  §  325 58 

dividends  may  be  paid  to.     C.  C.   §  325 58 

Minor,  estate  of,  stock  owned  by  may  be  represented,  how. 

C.  C.   §  313 50 

Non-resident   owner   must  give   bond   at   time  of  transfer. 

C.  C.   §  326 59 

Owners  of  shares  are  called  stockholders.     C.  C.  §  298 38 

liability.     C.   C  §  322 55 

Personal  property,  and  are  transferable  by  indorsement  and 

delivery.     C.   C.   §  324 58 

Power  of  corporations  to  sell  for  assessments.     C.  C.  §  354, 

subd.    7 70 

Preferred,  classification  of,  in  articles.     C.  C.  §  290,  subd.  6.     33 

Record  of,  where  kept.     Const.,  art.  XII,  §14 14 

transfer  of  shares.     C.  C.  §  324 58 

Recovery  of,  when  sold  for  delinquent  assessments.     C.   C. 

§  347 68 

when  sold,  time  limit  for  action.     C.  C.  P.  §  341 381 

Sale,    for    assessment,    corporation    may    purchase.      C.    C. 

§343    67 

at  public  auction  for  assessment.     C.  C.  §  341 66 

under  execution.     C.  C.  P.  §  688 391 

Shares  of,  are  not  subject  to  taxation.     Pol.  C.  §3608 346 

held  in  trust,  liability.     C.  C.  §  322 55 

national  bank  stock.     See   Banks,   National. 


S02  (iKNKUAr,   IXDKX. 

CAPITAL   STOCK— Continued.                                                             Page. 
Sold    for    assessment   and    puieliasefl    by    cdrpoiation,    dis- 
position of.     C.  C.  §  344 67 

for   delinquent    assessment,    action    for    recovery.      C.    C. 

§  347 '. 68 

for   delinquent   assessment,    time   of    commencing   action 

to  recover.     C.  C.  P.  §  341 381 

State  not  to  be  subscriber  for.    Const.,  art.  XII,  S  13 14 

Taxation    of,    except    national    banks,    forbidden.      Pol.    C. 

S  3608 346 

Transfer  of  sliares,  procedure.     C.  C.  §  324 58 

Voting    power   of,    at   elections   for   directors.      Const.,    art. 

XII,    §12 14 

cumulative,  at  elections.     C.  C.  §  307 45 

when  portion  owned  by  corporation.     C.  C.  §  344 67 

where    common    and    preferred,    the    same.      C.    C.    §  290, 

subd.   6 33 

Withdrawal  of,  liability  of  director.     C.  C.  §  309 46 

When  portion  sold  to  corporation  for  assessment,  majority 
of  remaining  sliares  to  govern  at  meetings.  C  C. 
S  344 67 

CARRIERS.  See,  also,  CANAL  COMPANIES;  CARRIERS, 
MARINE;  CARRIERS  OF  MESSAGES;  CARRIERS 
OF  PERSONS;  CARRIERS  OF  PROPERTY;  RAIL- 
ROADS; STREET  RAILROADS;  TELEGRAPH  AND 
TELEPHONE  CORPORATIONS;  TRANSPORTATION 
COMPANIES. 

Action  against,  for  recovery  of  penalty.     C.  C.  §2170 249 

Birds,  game,  limit  on  shipment  of.     Pen.  C.  §  627b 429 

game,  unlawful  shipment  of.     Pen.  C.  §  627a 428 

non-game,  imlawful  shipment  of.     Pen.  C.   §  637d 431 

transportation  of,  for  scientific  pui'poses.     Pen.  C.  §  637e.  431 
Contract,    special,    may   be   made   for   limit   of   obligations. 

C.   C.    §2174    250 

for  release  of  certain  obligations,  void.     C.  C.   §2175 250 

written,  effect  of  acceptance.     C.  C.  §  2176 251 

Defined  and  described.     C.  C.   §  2168 249 

Description  of.     Const.,  art.  XII,  §  17 15 

Fraudulent  appropriation  of  property.     Pen.  C.   §505 421 

Game,  limit  of  shipment  of.     Pen.  C.  §  627b 429 

unlawful  transportation  of.     Pen.  C.  §  627a 428 

Interest   in,  by  officers  or  employees,  limited  to  ownership 

of  stock.     Const.,  art.  XII,   §  18 16 

Liability,    agreements    in    anticipation    of,    void    in    certain 

cases.     C.  C.    §  2175 250 

effect  on  of  written  contract.     C.  C.  §  2176 251 

letters  or  packages  of  value,  information  required.     C.  C. 

§  2177    251 

Obligation  to  carry.     C.  C.  §  2169 249 

Obligations,  limited  only  by  special  contract.     C.  C.  §  2174.  250 

certain,  can  not  be  released.     C.  C.  §  2175 250 

Operation,  failure  to  start  on  schedule  time,  penalty.     C.  C. 

§  2170 249 

starting  at  time  and  place  announced.     C.  C.  §  2172 250 


GENEUAL   INDEX.  803 

CARRIERS— Continued.  Page. 

Preference  not  to  be  given.     C.   C   S  2170 249 

which   must  be  given.     C.   C.    §  2171 2r)0 

Rates,  compensation  to  be  reasonable.     C.  C.  §2173 2.'i0 

when  lowered  in  competition,  not  to  be  increased.      Const., 

art.  XII,   §20 IG 

Sharing  of  earnings  forbidden.     Con.st.,  art.  XII,  §  20 Ifi 

Time-tables  established.     C.  C.   §  2170 249 

CARRIERS,  MARINE.  See,  also,  CARRIERS;  CARRIERS 
OF  PERSONS;  CARRIERS  OF  PROPERTY.  See,  also. 
Appendix  Index,  EMIGRATION. 

Liability  of.     C.   C.   S  1^197 255 

of  marine  carrier,   furtlier  regulated  by  congress.     C.   C. 

§  2198    255 

Perils  of  the  sea  defined.     C.  C.   §  2199 255 

CARRIERS  OF   MESSAGES.     See,  also,   CARRIERS;  TELE- 
GRAPH   AND   TELEPHONE    CORPORATIONS. 
Damages,   in  case  of  refusal  or  postponement  of  message. 

C.   C.    §  2209    257 

Messages,    by    telegraph,     order    of    transmission.      C.    C. 

§  2207    257 

otlier   than   by   telegraph,    order   of   transmission.      C.    C. 

§  2208    257 

Minors  not  to  be  sent  to  certain  places.     Pen.  C   §  273e....  408 

CARRIERS  OF  PERSONS.  See,  also,  CARRIERS:  RAIL- 
ROADS;   STREET    RAILROADS. 

Baggage,  delivery  of  at  arrival  of  passenger.     C.  C.  §  2183..  252 

liability  for.     C.  C.   §  2182 252 

lien  on  for  payment  of  fare.     C.  C.   §2191 254 

manner  of  transportation.     C.  C.  §  2183 252 

obligation  to  carry.     C.  C.  §  2180 251 

of  what  may  consist.     C.  C.  §  2181 252 

Bicycles,  obligation  to  carry.     C.   C.   §2181 252 

Fare,  lien  on  baggage  for  payment.     C.  C.  §  2191 254 

not  payable  after  ejection.     C.  C.  §  2190 254 

payable  on  demand.     C.  C.  §  2187 253 

refusal  to  pay,  ejection.     C.  C.  §  2188 253 

when  additional  may  be  collected.     C.  C.  §  2189 253 

Foreign   corporations   liave   same   riglits   as   domestic  com- 
panies.    C.  C.   §  407 92 

Lien  upon  baggage  for  payment  of  fare.     C.  C.  §  2191 254 

Overloading  of  vehicle  forbidden.     C.  C.  §2185 253 

Rules  for  conduct  of  business.     C.  C.   §  2186 253 

\i(ilation  of  by  passenger,  ejection.     C.  C.  §2188 253 

Refusal  to  carry  passenger,  penalty.     Pen.  C.   §365 414 

Seat  must  be  provided  for  every  passenger.     C.  C.  §  2185...  253 
Vehicles    in    sufficient    number    must    be    provided.      C.    C. 

§  2184    253 

CARRIERS  OF   PROPERTY.      See,   also,   CARRIERS;    RAIL- 
ROADS. 
Foreign    corporations    have    same    rights    as    domestic    cor- 
porations.    C.   C.    §  407 92 


804  (IKNERAI.   INDKX. 

CARRIERS  OF  PROPERTY— Continued.  Page. 

Freight,  delivered  bevond  usual  route,  pi-oof  in  case  of  loss. 

C.   C.   §2202 256 

delivery  of,  beyond  usual  route.    C.  C.  §  2201 256 

property,  received  as,   may  be  held  for  charges.     Pol.   C. 

§  3152 338 

sale  of,  when  perishable.     C.  C.  §  2204 256 

unclaimed,  may  be  sold  for  charges.     Pol.  C.  §  3153 338 

valuable,  extent  of  liability.     C.  C.  §  2200 256 

Liability  for  delay.     C.  C.  §  2196 255 

for  loss,   exceptions.     C.   C.   §  2194 254 

for  valuables,  extent  of.     C.  C.   §  2200 256 

in  case  of  loss  of  freight  consigned  beyond  usual  route. 

C.   C.   §2202 256 

when  exemptions  do  not  apply.     C.  C.   §  2195 255 

Perishable  property,  sale  of.     C.  C.  §  2204 256 

Responsiblity  of  carrier,  ceases,  wlien.     Pol.  C.  §3155 339 

Service,  otlier  than  carriage  and  delivery.     C.  C.  §  2203....  256 

Valuables,  extent  of  liability.     C.  C.   §  2200 256 

CEMETERY  ASSOCIATIONS.     See,  also,  CEMETERY  COR- 
PORATIONS. 
Burial    grounds   for   deceased    members    of    non-profit   cor- 
porations.    C.   C.   §  595 .^178 

See,  also,   Non-Profit   Corporations;   Co-operative   Busi- 
ness Associations. 
Church   cemeteries.     See   Religious   Corporations. 
CEMETERY  CORPORATIONS.      See,  also,  CEMETERY  AS- 
SOCIATIONS;  also,    Appendix    Index,    CEMETERIES. 

Bonds,  issuance  of.     C.  C.  §  611 192 

Elections,  voting  power  of  members.     C.  C.  §  609 192 

Income  from  property,  how  applied.     C.  C.   §616 194 

Land,  quantity  which  may  be  held.     C.  C.  §  608 191 

Lands,  sale  of,  how  effected.     C.  C.  §  615 194 

Lot  owners,  previous  to  purchase,  rights  of.     C.  C.  §  614...  194 
Lots  or  plats  are  inalienable,   except  under  certain  condi- 
tions.    C.   C.    §  613 193 

Members,  voting  power  of.     C.  C.  §  609 192 

Payments  required  to  be  made  on  bonds.     C.  C.  §  611 192 

Perpetual  care,  provision  for.     C  C.   §612 193 

Personal  property,  amount  which  may  be  held.     C.  C.  §  610. .  192 
Plats   or    lots   transferable    only   under    certain    conditions. 

C.   C.   §613 193 

Property,  for  income,  may  be  held.     C.  C.  §  616 194 

Report  to  be  made  annually  by  directors.     C.  C.   §  609 192 

Title,  may  take  and  hold,  for  consideration.     C.  C.  §  612 193 

CERTIFICATES. 

Forms.      See  Appendix  Index,    Forms  and    Precedents. 

Lost  or  destroyed,  how  replaced.     C.  C.  §  365 80 

See,    also,    Books   and    Records;    also,    Appendix   Index, 
Certificates. 
CERTIFICATES  OF  INCORPORATION. 

Issued  by  secretary  of  state.  -C.  C.  §  296 37 

fee  for  issuance.     Pol.  C.  §  416,  subd.  t; 261 

See,  also,  Articles  of  Incorporation. 


c;em:ral  indkx.  S05 

CERTIFICATES    OF     INVESTMENT.       See     INVESTMENT 
COMPANIES. 

CHAMBERS    OF    COMMERCE.      See    COMMERCE,    TRADE, 
AND    MECHANIC   ARTS. 

CHANGE    OF    NAME.      See    NAME. 

CHARTERS.      See,    also,    EXISTENCE.                                          Page. 
Existing  at  time  of  adoption  of  constitution,  not  valid  un- 
less operations  begun.     Const.,  ai-t.  XII,  §6 12 

Legislature  not  to  extend.     Const.,   art.  XII,   §7 12 

CHILDREN    AND    ANIMALS. 

Aid  from  magistrates  and  public  officers.     C.  C.   §  607c 188 

Agents  and  members,   avitiiorized  to  act  as  police  officers. 

C.   C.   §  607f 189 

Child,   may   be   arrested,    under   certain   conditions.     C.    C. 

§  607g    190 

may  be  committed  as  provided  for.     C.  C.  §  607g     190 

Complaints  by  society  for  violation  of  law.  C.  C.  §  607b. . . .  187 
Corporations  for  protection  of,  how  formed.  C.  C.  §607..  187 
Fines,    penalties,    and    forfeitures,    disposition    of.      C.    C. 

§  607e    188 

Members  and  agents,   authorized   to  act  as  police  officers. 

C.  C.  §  607f 189 

Pre-existing  corporations,  how  affected.     C.  C.  §  607d 188 

Property  held  by.     C.   C.    §  607a 187 

Weapons,   in   cities  of  the   first  class,   permission   to   carry 

must    be   obtained   from    police    commissioners.      C.    C. 

§  607f    189 

CHINESE. 

Corporations  not  to  employ.     Const.,  art.  XIX,  §  2 26 

Employment    of,    by    corporations    or    corporation    officers 

forbidden.     Pen.  C.  §§  178,  179 408 

CHURCHES.      See,    also,    RELIGIOUS    CORPORATIONS. 

Are  exempt  from  taxation.     Const.,  art.  XIII,  §  li/, 20 

Buildings,  used  for  religious  purposes  exclusively,"  exempt 

from   taxation.      Pol.   C.   §  3611 347 

CITIES.      See,    also.    Appendix    Index,    FRANCHISES;    MU- 
NICIPAL   CORPORATIONS. 
Authority   of   common   council    to   grant   certain   privileges. 

Pol.   C.    §4410 375 

of  common   council   to    make  certain   contracts.      Pol.    C. 

§  4412 376 

Reservations    by,    in    case    of    granting    certain    privileges. 

Pol.    C.    §  4411 375 

in  making  certain  contracts.     Pol.  C.  §4413 376 

Water  companies,  contracts  or  grants  by  cities  or  towns. 

C.    C.    §§548,    549 1.^,6 

CODES. 

Civil,  portions  relating  to  private  corporations 27 

terms  used  in,  definitions.     C.   C.   §14 28 

Civil  Procedure,  portions  relating  to  private  corporations..  377 

terms  used  in,  definitions.     C.   C.   P.   §  17 378 


■SOl)  GENERA  r.   TN1>EX. 

CODES — Continued.  Page. 

Penal,  portions  relating  to  private  corporations 405 

terms  used  in,  definitions.     Pen.  C.  §  7 405 

Political,  portions  relating  to  private  corporations 258 

terms  used  in.  definitions.     Pol.  C.  §  17 259 

terms  used  in,  definitions  ("taxation).     Pol.  C.   §.3617 348 

COLLEGES    AND     INSTITUTIONS     OF     HIGHER     EDUCA- 
TION, CONSOLIDATION.     See,  also,  COLLEGES  AND 
SEMINARIES    OF    LEARNING;    RELIGIOUS    CORPO- 
RATIONS. 
Authorization     to     consolidate,     under     certain     conditions. 

C.   C.   §652 211 

Consolidated  corporations,  how  organized.     C.  C.  §652 211 

Dissolution    of   corporations   absorbed   by   new   coi'poration. 

C.   C.    §  V.-,-:, 212 

Grants,  disposition  of.     C.  C.  §  653 212 

Property,  conveyance  of,  to  new  corporation.     C.  C.  §  653..   212 
Trustees,  number  and  election  of.     C.   C.   §652 211 

COLLEGES  AND  SEMINARIES  OF    LEARNING.     See,  also, 
COLLEGES   AND    INSTITUTIONS   OF    HIGHER    EDU- 
CATION,    CONSOLIDATION;     NON-PROFIT    CORPO- 
RATIONS;   RELIGIOUS    CORPORATIONS. 
Articles  of  incorporation,  what  must  contain.     C.  C.  §  649..   209 
Business,  place  of.   need  not  be  maintained  by  educational 

ci:)rporations.     Const.,  art.  XII,  §  14 14 

By-laws  of.     C.  C.  §  650,  subd.  12 209 

Educational     corporations,     existing,     may     reincorporate. 

C.   C.   §651 210 

Property  handled  by.     C.  C.   §650,  subds.  5  and  6 209 

Reincorporation     of    existing    corporations,     how    effected. 

C.   C.    §651 210 

Trustees,  number  of.     C.  C.  §  649,  subd.  4 209 

powers  and  term  of.     C.   C.   §  650 209 

COMMERCE,   TRADE,   AND    MECHANIC   ARTS. 

Articles  of  incorporation  to  be  filed.     C.  C.  §  591 174 

Assessments,  power  to  levy  and  collect.     C.  C.  §  592d 176 

By-laws  must  provide  for  certain  matters.     C.  C.  §  592c....  176 

Capital  stock  and  certificates  may  be  issued.     C.  C.  §  592...  175 
Commerce  or  manufacture,  corporations  not  to  engage  in. 

C.   C.   §  5!tl 174 

Directors  or  trustees,  and  their  powers.     C.  C.  §  592a 175 

Formation  of,  by  twenty  or  more  persons.     C.  C.  §591 174 

Pre-existing   corporations   may  acquire  powers  and  privil- 
eges.    C.   C.   §  592e 176 

Property,  provisions  for.     C.  C.  §  592b 175 

Stockholders    have    distinct    rights    apart    from    members. 

C.   C.   §592 175 

COMMON    CARRIERS.      See  CARRIERS. 

CONSOLIDATION. 

Bonded   indebtedness.      C.   C.   §359,   subd.   6 72 

Specified    corporations.      See    name    headings,    as    Colleges, 
Mining  Corporations,    Railroads. 


CENKHAI-   INDEX.  807 

CONSTITUTION    OF   CALIFORNIA.  Pack. 

Actions  against  corporations,  wliere  coniinenced.     Art.  Xl\, 

S  IG    15 

Associations    and    companies,    wliat    are    included    in    term 

"corporations."      Art.   XII,    §  4 12 

Banking    corporations,    formed    under    general    laws.      Art. 

XII,    §5 12 

Banks,  not  to  circulate  anytliing-  but  lawful  money.     Art. 

XII,    §  5 12 

public  money  may  be  deposited  with.     Art.  XI,  §  16^ 7 

Benevolent  and  charitable  organizations,  need  not  maintain 

place  of  lousiness.     Art.  XII,   §  14 14 

Bonded    indebtedness,    increase    of,    regulation.      Art.    XII, 

§11    14 

Bonds  are  property,  subject  to  taxation.     Art.  XIII,  §1....  19 

issuance  of,  regulations.    Art.  XII,  §  11 14 

Bridges,    not    to    be    chartered    or   licensed    by    legislature. 

Art.  IV,   §  25.   subd.   25 4 

Business,  limitation  of.     Art.  XII,   §  9 13 

place  of,  must  be  maintained.     Art.  XII,  §14 14 

place  of,   need  not  be  maintained  by  benevolent,   educa- 
tional, or  religious  organizations.     Art.  XII,  §14 14 

Canal  companies.     See,  also.   Carriers. 

are  common  carriers.     Art.  XII,   §  17 15 

subject  to  legislative  control.     Art.  XII,   §  17 15 

Capital    stock,   contracts   for   purchase   or   sale   of,    without 

intention  to  deliver,  void.     Art.  IV,  §  26 5 

fictitious  buying  or  selling  of,  prohibited.     Art.  IV,  §  26..  5 

increase  of,   regulation.     Art.   XII,    §  11 14 

issuance  of,  regulations.     Art.  XII,   §  11 14 

not  to  be  subscribed  for  by  state.     Art.  XII,  §  13 14 

record  of,  where  kept.     Art.  XII,  §  14 14 

voting  power  of,  at  elections  for  directors.     Art.  XII,  §  12  14 
Carriers.     See,   also.    Canal    Companies;    Railroads;    Trans- 
portation companies. 

common,  description  of.     Art.  XII,  §  17 15 

interest  in,  by  officers  or  employees,  limitation  on.     Art. 

XII,    §18 16 

rates,  when  lowered  in  competition,  not  to  be  increased. 

Art.  XII,    §  20 16 

sharing  of  earnings  forbidden.     Art.  XII,  §  20 16 

Charters,  existing  at  time  of  adoption  of  constitution,  not 

valid  unless  operations  begun.     Art.  XII,  §  6 12 

not  to  be  extended  by  legislature.     Art.  XII,  §  7 12 

not    to    be    issued    by    legislature    to    ferries,    bridges,    or 

roads.     Art.  IV,   §  25,  sutad.   25 4 

Churches  are  exempt  from  taxation.     Art.  XIII,   §  li^ 20 

Chinese  not  to  be  employed.     Art.  XIX,  §  2 26 

Convict    labor,   not  to   be  let   out   by   contract   to   corpora- 
tions.    Art.   X,    S  6 7 

Co-operative    associations,    elections    in,     how    conducted. 

Art.   XII,    §  12 14 

Corporate  existence,   extension   of.     Art.   XII,    §7 12 


SOS  UIOiNKUAl,   INDKX. 

CONSTITUTION    OF    CALI FORNI  A— Continued.                     Page. 
Credit,    public,    giving   or    lending   of    bv    legislature,    pro- 
hibited.    Art.   IV,    §31 6 

not  to  be  loaned  or  subscriptions  made  to  capital  stock 

by  state.     Art.  XII,   §13 14 

Definition  of  term  "corporations."     Art.  XII,   §4 12 

Directors,    election    of,    voting   power   of    stock.      Art.    XII, 

§12    14 

liability  of.     Art  XII,  §  3 11 

Dues  from  corporations,  how  secured.    Art.  XII,  §  2 11 

Educational  corporations  need  not  maintain  a  place  of  busi- 
ness.    Const.,  art.  XII,  §  14 14 

Elections,   for  directors,  voting  power  of  stock.     Art.  XII, 

§12    14 

Eminent  domain,  corporation  not  to  obstruct  rights  of  way 

to  navigable  waters.     Art.  XV,   §  2 25 

corporate  property  subject  to.     Art.  XII,  §  8 13 

corporate  right  of  way.    Art.  I,  §  14 2 

water  front,  right  to,  exists  in  state.     Art.  XV,  §1 25 

Equalization,  boards  of,  state  and  county,  how  constituted 

and  elected.     Art.  XIII,  §  9 21 

powers  of.     Art.  XIII,  §  9 21 

Existence  of  corporation,  how  extended.     Art.  XII,  §7 12 

Extension  of  corporate  existence,  how  effected.     Art.  XII, 

§7    12 

Ferries,  not  to  be  chartered  or  licensed  by  legislature.    Art. 

IV,    §  25,   subd.   25 4 

Fines,    not   to   be    remitted    by   legislature.      Art.    IV,    §  25, 

subd.  26  4 

Foreign    corporations,    not    to    be    allowed    more    favorable 

conditions  than  domestic  corporations.     Art.  XII,  §  15..     15 
Forfeitures,    not    to   be    remitted   by   legislature.      Art.    IV, 

§  25,   subd.   26 4 

Formation  of  corporations  to  be  under  general  laws.     Art. 

XII,    §1    10 

Franchises,   are  property,   subject   to   taxation.     Art.   XIII, 

§1    19 

existing   at   time   of   adoption   of   constitution,    not   valid 

unless  operations  begun.     Art.  XII,  §  6 12 

not  to  be  extended  by  legislature.     Art.  XII,   §7 12 

transfer  of,  does  not  release  liability.     Art.  XII,  §10 13 

water  companies,  right  to  collect  rates  by,  is  a  franchise. 

Art.   XIV,    §  2 25 

Gas  corporations.      See,   also,    Lighting    corporations. 

use  of  streets  for  pipes  and  conduits.     Art.  X,  §  19 8 

charges    by,    wlien    regulated    by    legislature.      Art.    IV, 

§  33    6 

Immunities,  limitations  on.     Art.  I,  §  21 2 

special,    not    to    be    given   by   legislature.     Art.    IV,    §  25, 

subd.  19  4 

Income  tax,  assessment  and  collection  of.     Art.  XIII,  §  11..     23 
Interest,  rate  of,  not  to  be  regulated  by  legislature.     Art. 

IV,   §  25,   subd.   23 4 


GENEKAL  IiNUEX.  809 

CONSTITUTION    OF    CALIFORNIA— Continued.  Page. 

Land,  large  holdings  of,  discouraged.     Art.  XVII,  §  2 26 

Lands,    tide,    not    to    be    granted    or    sold    to    corporations. 

Art.   XV,    §  3 25 

Laws,    general    onlj'^    to    be    passed,    when    can    be    made 

applicable.    Art.  IV,  §  25,  subd.  33 4 

of   general   nature,    to   have   uniform    operation.      Art.    I, 

§11    1 

special,  forbidden  in  enumerated  cases.     Art.  IV,  §  25 4 

Legislation,  releasing  or  extinguishing  obligations,   forbid- 
den.    Art.  IV,  §  25,  subd.  16 4 

relating   to   corporations,   legislature   to   pass.     Art.   XII, 

§24    19 

special,  forbidden,  in  enumerated  cases.     Art.  IV,   §25..       4 
Liabilities,    not    released    by    transfer    of    franchise.      Art. 

XII,    §10    13 

Licenses,  not  to  be  issued  by  legislature  to  ferries,  bi-idges, 

or  roads.    Art.  IV,  §  25,  subd.  25 4 

Lighting  corporations,  use  of  streets  by.     Art.  X,   §19 8 

See,  also,  Gas  corporations. 

Lotteries,  prohibited.     Art.  IV,  §  26 5 

Money,  lawful,  only,  to  be  circulated.    Art.  XII,  §  5 12 

rate  of  interest  on,   not   to   be   regulated  by  legislature. 

Art.  IV,   §  25,   subd.   23 4 

state,  county,  and  municipal,  may  be  deposited  in  banks. 

Art.  XI,   §  16!-^ "i 

Mortgages,  taxation  of.     Art.  XIII,   §  4 21 

Municipal   functions,   not   to  be   delegated   to   corporations. 

Art.  XI,  §  13 7 

Organization    of    corporations,    to    be    under    general    laws. 

Art.   XII,   §  1 10 

Penalties,  not  to  be  remitted  by  legislature.     Art.  IV,   §  25, 

subd.  26  4 

Privileges,  exclusive,  forbidden.     Art.  IV,  §25,  subd.  19 4 

special,  limitations.     Art.  I,  §  21 2 

Private  property  can  not  be  taken  without  compensation. 

Art.   I,   §  14 2 

rights  of.     Art.  I,   §  14 2 

Property,  assessment  of,  where  and  by  wliom.     Art.  XIII, 

§10    23 

definition  of.     Art.  XIII,   §  1 19 

taxation  of.     Art.  XIII,  §  1 19 

Public    credit,    giving    or    lending    of    by    legislature,    pro- 
hibited.    Art.   IV,    §  31 6 

not   to  be  loaned  or  subscriptions  made   by  state.     Art. 

XII,    §13    14 

Public    officers   not    to    accept   passes    from    transportation 

companies.     Art.  XII,   §  19 16 

Railroad   commissioners,  election  of  by  districts.     Art.   17, 

§  22    1" 

powers  of.     Art.  XII,  §  22 17 

Railroad   districts,   apportionment  of  state   into.     Art.  XII, 

§  22    17 

counties  contained  in  first  apportionment.     Art.  XII,  §  23     19 


810  GENERAL  INDEX. 

CONSTITUTION    OF   CAUI  FORN  I  A— Continued.  PAGE. 

Railroads  are  common  carriers.     Art.  XII,  §  17 15 

assessment  of  property,  where  made.     Art.  XIII,  §10....  23 

discrimination  by,  forbidden.     Art.  XII,   §21 17 

taxation  of,  in  case  of  mortgages.     Art.  XIII,  §  4 21  • 

not  to  issue  passes  to  public  officers.     Art.  XII,  §  19 16 

rates,  when  lowered  in  competition,  not  to  be  increased. 

Art.   XII,    §  20 16 

rights  of  connection,  crossing,  or  intersection.     Art.  XII, 

§  17    15 

subject  to  legislative  control.     Art.  XII,   §17 15 

See,  also.   Carriers. 

Real  estate,  holding  of  limitations  on.    Art.  XII,  §  9 13 

Religious  organizations,   need  not  maintain  place  of  busi- 
ness.    Art.   XII,    §  14 14 

Rights  of  way   to  navigable   waters  not  to  be   obstructed. 

Art.   XV,    §  2 25 

of  corporations.     Art.   I,    §  14 2 

See,  also.   Eminent  Domain. 
Roads  not  to  be  chartered  or  licensed  by  legislature.     Art. 

IV,    §  25,    subd.    25 4 

Securities,  taxation  of.     Art.  XIII,  §  4 21 

State  aid  of  private  corporations  forbidden.     Art.  IV,  §  22..  3 
not  to  loan  credit  to  or  subscribe  for  stock  of  corpora- 
tions.    Art.   XII,    §  13 ■. 14 

Stockholders,  liability  of.     Art.  XII,   §  3 11 

Storage  corporations.     See  Warehousemen. 

Suits  against  corporations,  where  instituted.     Art.  XII,  §  16  15 

Taxation,  churches  exempt  from.     Art.  XIII,   §11/0 20 

of    incomes,    assessment    and    collection    of.      Art.    XIII, 

§11 23 

of  mortgages.     Art.  XIII,   §  4 21 

of  securities.     Art.  XIII,   §  4 21 

legislature  to  pass  laws  to  enforce.     Art.  XIII,  §  13 23 

property  subject  to.    Art.  XIII,  §  1 19 

property,  where  and  by  whom  assessed.     Art.  XIII,  §  10..  23 
Telegraph    corporations,    charges    by,    to    be    regulated    by 

legislature.     Art.  IV,   §  33 •  •  •  •  6 

Transportation    companies.      See,    also,    Canal    Companies; 
Carriers;    Railroads. 

are  common  carriers.     Art.  XII,  §  17 15 

discrimination  by,  forbidden.     Art.  XII,  §  21 ; 17 

not  to  issue  passes  to  public  officers.     Art.  XII,  §  19 16 

subject  to  legislative  control.     Art.  XII,  §  17 15 

Trustees,   boards  of.     See  Directors. 

Warehousemen,    storage    corporations,    charges    by,    when 

regulated  by  legislature.     Art.  IV,   §  33 6 

Water,  right  to  collect  rates  for,  is  a  franchise.     Art.  XIV, 

§2    25 

use  of,  when  public  use.     Art.  XIV,  §  1 •  ■  •  •  24 

Water  companies,  rates  to  be  fixed  by  law.    Art.  XIV,  §  1..  24 

right  to  collect  rates  is  a  franchise.     Art.  XIV,  §  2 25 

u.se  of  streets  by,  for  pipes.     Art.  X,  §  19 8 

use  of  water  by,  subject  to  state  control.     Art.  XIV,  §  1..  24 


OKXERAL   TXDEX.  811 

CONSTITUTION    OF    CALIFORNIA — Continued.  Page. 

Water  front,  access  to,  not  to  be  obstructed.     Art.  XV,  ^  2.  25 

eminent  domain  exists  in  state.     Art.  XV,  §  1 25 

tide  lands  fronting  on,  to  be  witliheld  from  grant  or  sale. 

Art.   XV.    §  3 25 

Wharfage    corporations,    cliarges    by,    when    regulated    by 

legislature.     Art.  IV,   §  3.3 6 

CONTRACTS.      See,  also,  FRANCHISES.    • 

Corporate  power  to  enter  into.     C.  C.  §354.  subd.  8 70 

CONTROLLER    OF    STATE. 

County  clerks  to  notify  of  county  rate  of  taxation.     Pol.  C. 

§3667    3G0 

Duty  of,   with  reference  to  record  of  railway  assessments. 

Pol.    C.    §  3667 360 

Publication  by.  of  notice  of  taxation.     Pol.  C.  §  3668 361 

Suit  by,  for  delinquent  taxes.     Pol.  C.  §  3670 364 

See,   also.    Equalization;   Property;    Taxation. 

CONVICT    LABOR. 

Contracting  of,   to  corporations  forbidden.     Const.,   art.   X. 

SO    7 

CO-OPERATIVE    ASSOCIATIONS. 

Agricultural,    mercantile,    and    manufacturing,    elections    in, 

how  conducted.      Const.,   art.   XII,    §12 14 

Fees   for   filing  articles   witli   secretary   of   state,    specified. 

Pol.   C.    §  416.    sulid.    4 261 

CO-OPERATIVE   ASSOCIATIONS,   AGRICULTURAL,   VITI- 

CULTURAL,  AND  HORTICULTURAL,   NON-PROFIT. 

Agents  or  officers,  power  of  association   to  appoint.     C.   C. 

§  653v,  suljd.  1 223 

Articles  of  incorporation,  amendment  of.     C.  C.  §  653r 224 

amendment  of,  in  certain  cases.     C.  C.  §  650o 221 

must  set  forth  certain  facts.     C.  C.  §  653o 221 

Business,  may  be  inquired  into  by  state.     C.  C.  §  653s 225 

By-laws,  adoption  of.     C.  C.  §  653p 222 

contents  of.     C.  C.   §  653p 222 

Capital  stock,  not  to  issue.     C.  C.   §  653n 220 

Consolidation.     C.  C.  §  653q,  subd.  3 223 

Directors,  election  of.     C.  C.  §  653p,  subds.  1  and  2 222 

number  of.     C.  C.  §  653o,  subd.  5 221 

number  of,  provided  for  in  by-laws.     C.  C.  §  653p 222 

Dissolution.     C.  C.   §  653q,  subd.   4 223 

Existence,  term  of.     C.  C.  §  653o,  subd.  4 221 

Existing    corporations,   privilege  of   reincorporation.      C.    C. 

S  (;53r    224 

Formation  of.     C.   C.   §  653m 220 

Members,    number,    qualification,    and    witlidrawal.    C.    C. 

§  653p,     subd.     5 222 

payment  by,  of  fees  or  other  compensation  to  association. 

C.  C.   §  653p,  subd.   4 222 

power   of   association    to    admit   or   expel.      C.    C.    §  653q, 

subd.  1  223 

voting  power  of.     C.  C.   §  653o.  subd.   6 221 


812  GENERAL   INDEX. 

CO-OPERATIVE   ASSOCIATIONS,   ETC.— Continued.  Page. 

Membership,  conditions  of.     C.  C.  §  653p,  subd.  3 222 

forfeiture  of.     C.  C.  §  653q,  subd.  1 223 

qualifications  for.     C.  C.  §  653n 220 

transfer  of.     C.  C.  §  653n 220 

Non-profit  in  character.     C.  C.  §  653n 220 

Powers  of  corporation.     C.  C.  §  653m 220 

enumerated.     C.  C.    §  653q 223 

Property.     C.  C.  §  653q,  subd.  2 223 

Proxies,  by-laws  to  regulate  use  of.     C.  C.  §  653p,  subd.  6..  222 

Quorum,  by-laws  to  provide  for.     C.  C.  §  653p 222 

Reincorporation  of  existing  corporations.     C.  C.  §  653r 224 

CO-OPERATIVE  ASSOCIATIONS,   BUSINESS. 

Application  of  title,  to  certain  corporations.     C.  C.  §  6531...  219 

Articles  of  association.     C.   C.   §  653d 215 

fee  for  filing.     Pol.  C.  §  416,  subd.  4 261 

fee  for  filing  amended.     Pol.  C.  §  416,  subd.  10 261 

fee  for  recording.     Pol.  C.  §  416,  subd.  5 261 

of  consolidated  associations.     C.  C.  §  653i 218 

Associates  and  members,  admission  of.     C.  C.  §  653h 217 

Attachments  and   executions,   liability   in   connection   with. 

C.   C.    §  653f 217 

Benevolent  associations.     C.  C.  §  653b 214 

Books   to   be   kept.     C.    C.    §  653e 215 

Business,    right    to    do,    inquiry    into    by    attorney    general. 

C.  C.  §  653k 219 

principal  place  of.     C.  C.  §  653d 215 

By-laws,  adoption  of.     C.  C.  §  653e 215 

Capital  stock,  not  to  issue.     C.  C.  §  653b 214 

Certificates  of  membership  to  be  issued.    C.  C.  §  653b 214 

Consolidation  of  associations.     C.   C.   §6531 218 

Directors    and    officers,    term    and    compensation.      C.    C. 

§  G53e    215 

Dissolution.     C.   C.   §  653j 219 

Educational  associations.     C.  C.  §  653b 214 

Elections.     C.   C.   §  653c 214 

conduct  of.     C.  C.  §  653e 215 

Existence,  term  of.    C.  C.  §  653d 215 

Fees  and  dues  of  members.     C.  C.  §  653e 215 

Formation  of.     C.  C.  §  653b 214 

form  for.     See  Appendix  Index,  Forms  and  Precedents. 

Indebtedness,  by-laws  must  provide  for.     C.  C.  §  653c 214 

contracuon  of.     C.  C.  §  653h 217 

liability  for.     C.  C.  §  653f 217 

Industrial  associations.     C.  C.   §  653b 214 

Members,  interest  of.     C.  C.   §  653e 215 

rights  of.     C.  C.  §  653c 2l4 

voting  power  of.    C.  C.  §  653c 214 

Membership,  qualifications  for.     C.  C.  §  653c 214 

succession  of.     C.  C.  §  653e 215 

transfer  of.     C.  C.  §  653b 214 

Political  associations.     C.  C.  §  653b 214 

Powers.     C.  C.  §  653h 217 


GENERAL   INDEX.  813 

CO-OPERATIVE  ASSOCIATIONS,   BUSIN  ESS— Contd.  Page. 

Profits,    division    of   among    members,    by-laws    to    provide 

time  and  manner.     C.  C.  §  653e -15 

Property,  real  and  personal.     C.  C.  §  653h 217 

Purposes,  alteration  of.     C.  C.  §  653g 217 

Social  associations.     C.   C.   §  653b 214 

CO-OPERATIVE    CORPORATIONS,    BUSINESS. 

By-laws  of,  what  may  provide.     C.  C.   §  653a 213 

Formation  of,  for  any  lawful  business.     C.  C.  §  653a 213 

Profits,  how  divided.     C.  C.  §  653a 213 

may  be  divided  among  persons  other  than  stockholders. 

C.  C.   §  653a   213 

CO-OPERATIVE    CORPORATIONS,    NON-PROFIT. 

Articles  of  incorporation,  amendment  of.    C.  C.  §  653y 229 

what  m.ust  set  forth.     C.  C.  §  653v 226 

Application  of  laws  to  certain  corporations.     C.  C.  §  653za..  230 
Business,    inquiry    into,    may    be    made    by    state.      C.    C. 

§  653z    230 

By-laws,  adoption  of.     C.  C.  §  653w 227 

Capital  stock,  not  to  issue.     C.  C.  §  653u 226 

Consolidation    with   other  like   corporations.     C.    C.    §  653x, 

subd.  3 228 

Directors,  how  removed.     C.  C.  §  653w,  subd.  1 227 

number  of.     C.  C.  §  653v,  subd.  5 226 

Dissolution.    C.  C.  §  653x,  subd.  4 228 

Existence,  term  of.     C.  C.  §  653v,  subd.  4 226 

Formation  of  corporation.     C.  C.  §  653t 225 

original  members  to  subscribe  to  articles  of  incorporation. 

C.  C.  §  65.3V,  subd.  7 226 

Members,  number  and  qualification.     C.  C.  §  653w,  subd.  4.  227 

three  may  organize.     C.  C.  §  653t 225 

voting  powers  of.  determined.     C.  C.  §  653v,  subd.  6 226 

voting  powers  of,  wiien  unequal.     C.  C.  §  653zb 230 

IVlembership  fee.     C.  C.  §  653w,  subd.  3 227 

how  constituted.     C.  C.  §  653u 226 

transfer  of.      C.   C.    §  653u 226 

when  shall  cease.     C.  C.  §  653w,  subd.  2 227 

Powers  of  corporation  enumerated.     C.  C.  §  653x 228 

Purposes.     C.  C.  §  653t 225 

Property  rights.     C.  C.  §  653x,  subd.  2 228 

CORPORATE    EXISTENCE.      See    EXISTENCE. 

CORPORATION    LAWS.      See   LAWS. 

CORPORATION    SOLE.     See    RELIGIOUS   CORPORATIONS. 

COUNTIES. 

Credit  of,  not  to  be  loaned  to  corporations.     Pol.  C.  §  4004..    369 
Franchises    and    contracts.      See    Franchises;    Supervisors; 
see,   also,    Appendix  Index,    Franchises. 

Taxation  by,  basis  of.     Pol.  C.  §  3671 365 

equalization  of  state  taxes  among.     Pol.  C.  §  3692 365 


814  GENERAL   INDEX. 

COUNTY    CLERKS.      See,   also,    FEES.                                             Page. 
Fees   of.      Pol.    C.    S  4:'.00a 372 

COURTS  OF  JUSTICE.     See,   also,   HOLIDAYS. 

Days  when  business  may  be  transacted.     C.  C.  P.  Si  133 379 

Holidays,  appointments  on.     C.  C.  P.  §  135 380 

are  non-judicial  days.     C.  C.   P.   §  134 380 

special,  restriction  on  judicial  business.     C.  C.  P.  §  13.'>...   380 

CREDIT,   PUBLIC. 

Giving    or    lending    of    by    legislature,    prohibited.      Const., 

art.  IV,   §  31 6 

Not  to  be  loaned  or  subscriptions  made  to  capital  stock  bv 

state.     Const.,   art.  XII,   §  13 ".      14 

Of  counties,  not  to  be  loaned.     Pol.  C.   S  4004 369 

CREMATORIES.        See      Appendix      Index,      CEMETERIES; 
CREMATORIES. 

DEBENTURE     INVESTMENT.       See     INVESTMENT     COM- 
PANIES. 

DEBTS     AND     CREDITS.        See,     also,      BONDS     AND      IN- 
DEBTEDNESS. 

Credits,    assessment    of,    statement    lequii'ed    by    assessor. 

Pol.  C.  S  362!)   ." 353 

defined  for  purposes  of  taxation.  Pol.  C.  §3617,  subd.  6..  348 
Debt,    defined    for    purpose    of    taxation.      Pol.    C.    §  3617, 

subd.   0  348 

Debts  and  credits,  attachment  of,   liow  effected.     C.   C.   P. 

S  542,  sul)d.  5 388 

DEFINITIONS. 

Articles  of  incorporation  defined.     C.  C.  §  289 33 

Corporation  defined  by  constitution.     Const.,  art.  XII,  §4..  12 

defined  by  Civil  Code.     C.  C.    §  283 31 

Director   defined   in    relation    to    certain   offenses.      Pen.    C. 

«i  572 428 

Members  and  stockholders  defined.     C.  C.  §  298 38 

Public  and   private  corporations  defined.     C.   C.   §284 31 

Terms  and  words  used  in  Civil  Code.     C.  C.  §  14 28 

used  in  Code  of  Civil  Procedure.     C.  C.  P.  §  17 378 

used  in  Penal  Code.     Pen.  C.  §  7 405 

used  in  Political  Code.     Pol.  C.  §  17 259 

used  in  Political  Code  (taxation).     Pol.  C.   §3617 348 

DIRECTORS.      See,    also,    CAPITAL    STOCK;    ELECTIONS; 

MEETINGS. 
Absent  from  meeting,  assent  presumed  to  illegal  acts  vmless 

dissent  be  recorded.     Pen.  C.  §  570 427 

Action  of,  on  continuance  of  existence  imder  code.     C.   C. 

§287    32 

on  extension  of  corporate  existence.     C.  C.  §  401 88 

on  renewal  of  corporate  existence.  Const.,  art.  XII,  §  7..  12 
Actions    against,    to    be    commenced    within    three    years. 

C.   C.   P.    §359    382 

for    recovery    of    stock    sold    for    delinquent    assessment, 
within  six  months.     C.  C.  §  347 68 


GKXEKAL   INDKX.  815 

DIRECTORS— Continued.  Page. 

Articles    of    incorporation    must   state    names    and    number 

of.     C.  C.  §  290,  subd.  5 33 

Assessments,  power  to  levy.     C.  C.  §  331 63 

Business  of  corporation  to  be  conducted  by.     C.  C.  §  305. ...  44 
capital   stock   held   by,    amount   to   be   fixed   by   by-laws. 

C.   C.   §  305 44 

Chosen  from  among  members  or  stockholders.  C.  C.  §  305..  44 

Election,  annually.     C.   C.   §  302 42 

by-laws   may   provide   for   mode   and   manner    of.     C.    C. 

§  303,    subd.    4 43 

how  conducted.     C.   C.   §  307 45 

new  election  may  be  ordered  by  court.     C.  C.  §  315 51 

notice  of  election,  how  given.    C.  C.  §§  301,  302 42 

•notice    of   election,    waivure    of   by    stockholders.      C.    C. 

§  302 • 42 

postponement  of.     C.  C.  §  314 50 

voting  power  of  stock.     Const.,  art.  XII,  §  12 14 

voting  power  of  stock,  cumulative.     C.  C.  §  312 49 

voting  power  of  stock,   when  portion  owned  by  corpora- 
tion.    C.  C.  §  344 67 

False  reports  by,  civil  liability.    C.  C.  §  316 51 

criminal  liability.     Pen.  C.  §  564 426 

See,   also.   Appendix  Index,    Fraudulent    Reports. 
Fraud,    definition    of    term    "director"    in    relation    thereto. 

Pen.   C.   §  572 428 

in    organization    or    increase    of    capital    stock.      Pen.    C. 

S  558    423 

keeping  accounts  or  records.     Pen.  C.  §  563 425 

Fraudulent  action  by.     Pen.  C.   §  560 424 

Increase   or    decrease    of,   by   vote   of   stockholders.      C.    C. 

§  290    33 

certificate  of,  to  be  filed.     C.  C.  §  290,  subd.  5 33 

fee  for  filing  certificate  of  increase  or  decrease  with  sec- 
retary of  state.     Pol.  C.  §  416,  subd.  17 261 

for    issuing   of    certificate    by    secretary    of    state    of    in- 
crease or  decrease  of.     Pol.  C.  §  416,  subd.  18 261 

form  of  certificate  to  be  used  by  corporation.     See  Appen- 
dix Index,    Forms  and   Precedents. 

Liability  of.     Const.,  art.  XII,  §  3 11 

civil,  for  false  records  or  reports.     C.  C.  §  316 51 

contract  to  relieve,  is  void.     C.  C.  §  327 59 

for  certain  acts  during  administration,  statute  of  limita- 
tions not  to  apply.     C.  C.  §  309 46 

for    embezzlement    during    administration.      Const.,    art. 

XII,    §3    11 

Majority  of  members  of   board  must  be  residents  of  Cali- 
fornia.    C.  C.  §  305 44 

Meeting,     absent    from,    assent    presumed     to    illegal    acts 

unle.ss  dissent  be  recorded.     Pen.  C.  S  570 427 

licld  at  office ,or  principal  place  of  business.     C.  C.  S  319..  52 
notice    of,    by-laws    to    prescribe.      C.    C'.    S  303,    subds.    1 

and  8 43 

notice  of  special,  how  given.     C.  C.  §  320 52 


816  GENERAL   IJSDEX. 

DIRECTORS— Continued.                                                                     Page. 
Meetings,  presence  at  meeting  deemed  concurrence  in  pro- 
ceedings, unless  dissenting  in  writing.     Pen.  C.  §  569...  427 

time  of,  by-laws  to  prescribe.    C.  C.  §  303,  subd.  1 43 

Must   be  elected  on  first  Tuesday  in  June,   unless  by-laws 

provide  otherwise.     C.   C.   §  302 42 

Notice  of  election,  or  waivure  thereof.     C.  C.  §§  301,  302 42 

Number    of,    articles    of   incorporation    must   state.      C.    C. 

§  290,    subd.    5 33 

not  less  than  three     C.  C.  §  30.5 44 

not  to  be  changed  by  amending  articles  of  incorporation. 

C.  C.   §  362   78 

Organization  of  board.     C.  C.  §  308 46 

Powers   of,    in    relation    to   debts,    capital    stock,    and   divi- 
dends.    C.  C.  §  309 46 

in  relation  to  the  levy  of  assessments.     C.  C.   §  331 63 

to  settle  affairs  at  dissolution.    C.  C.  §  400 87 

Presumed    to    have    knowledge    of    affairs    of    corporation. 

Pen.    C.    §568 427 

Present  at  meeting,  deemed  to  consent  to  proceedings,  un- 
less dissenting  in  writing.    Pen.  C.  §  569 427 

Qualifications    and    duties,    by-laws    may    provide.      C.    C. 

§  303,    subd.    4 43 

for    election    as    directors,     certain    prescribed.       C.     C. 

§  305    44 

Quorum  of,  a  majority.     C.  C.   §  308 46 

must  be  present  to  make  meetings  valid.     C.  C.  §  305 44 

Removal  from  office.     C.  C.  §  310 48 

Trustees  for  creditors  at  dissolution.     C.  C.  §  400 87 

Vacancies  in  board,  how  filled.     C.  C.  §  305 44 

DISSOLUTION. 
Attorney   general   may  sue   for   on   behalf   of   state.      C.    C. 

§  358    72 

Capital   stock,   division  and  distribution  of,   at  time  of,   by 

directors.     C.  C.  §  309 46 

Creditor  may  apply  for,  when.     C.  C.  §  358 72 

Directors    are    trustees    unless    otherwise    ordered.      C.    C. 

§400    87 

Fee    for    filing    copy    of    decree    of    court.      Pol.    C.    §  416, 

subd.  25  261 

Legislative  power  to  dissolve  all  corporations.     C.  C.  §  404.  90 

Voluntary,  appeal  from  judgment  roll.     C.  C.  P.  §1233 399 

application  made  to  superior  court.     C.  C.  P.  §1227 398 

application,  objections  to.     C.  C.  P.  §  1231 399 

application,  publication  of.     C.  C.  P.  §  1230 399 

application,  verification  and  signatures  required.     C.  C.  P. 

§1229    399 

application,  what  to  contain.     C.  C.  P.  §  1228 398 

application,  when  heard.     C.  C.  P.  §  1232 399 

appointment  of  receiver.     C.  C.  P.  §  564 390 

appointment  of  receivers  by  court.     C.  C.  P.  §  565 391 

order  of  court  for  dissolution,  by  superior  court.     C.  C.  P. 

§  1232 399 


QENEBAL  INDEX.  817 

DISSOLUTION— Continued.  Page. 

Voluntary,  order  of  court  for  dissolution,  copy  of  decree  to 

be  filed  with  secretary  of  state.     C.  C.  P.  §  1232 399 

order  of   court,    form.      See   Appendix  Index,    Forms   and 
Precedents. 

DISTRICT    ATTORNEY. 

Examination   by,   of  affairs  of   corporations   when   required 

by  governor.      C.   C.    |  382 S4 

DIVIDENDS.      See,    also,    CAPITAL    STOCK;    DIRECTORS. 

Can  be  made  from  surplus  profits  only.     C.  C.  §  309 4() 

Fraudulent  making  of,  penalty.     Pen.   C.   §.560 42« 

EDUCATIONAL  ASSOCIATIONS.  See,  also,  COLLEGES 
AND  SEMINARIES;  CO-OPERATIVE  BUSINESS 
ASSOCIATIONS;     NON-PROFIT     CORPORATIONS. 

Business,  place  of,  need  not  be  maintained.  Const.,  art. 
XII,  §  14 14 

Incorporation   as  co-operative  business  association.     C.   C. 

S  653b    214 

ELECTIONS.  See,  also,  CAPITAL  STOCK;  DIRECTORS; 
MEETINGS;  MEMBERS;  PROXIES;  STOCKHOLD- 
ERS. 

Annual,  must  be  held.     C.  C.  §  302 42 

Ballots  and  manner  of  voting.     C.  C.  §  307 4.5 

Complaints  may  be  referred  to  superior  court.     C.  C.  §315.  51 

to  superior  court,  election  may  be  set  aside.     C.  C.  §  312. .  49 
Capital  stock,  amount  which  must  be  represented.     C.  C. 

§312    49 

how  voted.     C.  C.  §  307 45 

when  portion  owned  by  corporation.    C.  C.  §  344 67 

Conduct  of.     Const.,  art.  XII,  5  12 14 

Cumulative  voting.     C.  C.  §  307 45 

New,  may  be  ordered  by  superior  court  in  certain  contin- 
gencies.    C.  C.   §  315 .51 

Notice  of,  how  given.     C.  C.  301,  302 42 

how  given,  by-laws  to  provide.     C.  C.  S  303,  subd.  4 43 

may  be  waived.    C.  C.  §  302 4J 

Officers,    other    than    directors,    by-laws    may    provide    for. 

C.  C.  S  303,  subd.  fi 4:? 

Representation  at,  of  capital  stock.     C.  C.  §  312 49 

of  members  or  stockholders.     C.  C.  $  312 49 

of  minors,  insane,  or  deceased  persons.     C.  C.  §  313 50 

Postponement  of.     C.  C.  §  314 50 

Set  aside,  may  be,  by  superior  court.     C.  C.  §  312 49 

Time  of,  may  be  fixed  by  by-laws.     C.  C.  §  303,  subd.  4 43 

Waivure  of  notice  by  stockholders.     C.  C.  §  302 42 

ELECTRIC     LIGHT     COMPANIES.       See     LIGHTING    COR- 
PORATIONS. 
EMINENT  DOMAIN.     See,  also,  RIGHTS  OF  WAY. 

Corporate  property  subject  to.     Const.,   art.  XII,   §8 13 

Corporation    not    to    obstruct    rights    of    w.iy    to    na%'lgahle 

waters.     ("oii.«it..   art.   K\ ,    §2 2.') 

35 — CL 


818  GENERAL   INDEX. 

EMINENT    DOMAIN— Continued.  Page. 

Right  of  way  of  coi-poration.     Const.,  art.  I,   §  14 2 

Water  front,  right  to,  exists  in  state.     Const.,  art.  XV,  §  1.     2,') 

EQUALIZATION,    STATE    BOARD    OF. 

Assessment  by,  basis  tor  county  rate.     Pol.  C.  §3671 365 

Blank  forms,  prescribed  for  statements  to  assessors.     Pol. 

C.    S  3630    354 

Election  and   powers.     Const.,  art.  XIII,   §9 21 

Powers  and  duties  etiumerated.     Pol.  C.  §3692 365 

Railroad  franchises  and  other  property,  assessment  of,  liow 

and  when.     Pol.  C.  §  3665 357 

Railroad  property,  assessment  of.     Pol.  C.  §3664 356 

Railway  assessments,  record  of  apportionment  of.     Pol.  C. 

§  3666 359 

Railways,  assessment  of  property  of.     Pol.  C.  §  362S 351 

EXECUTION.       See     ATTACHMENT     AND     EXECUTION; 
PROPERTY. 

EXECUTORS.     See,   also,    BANKS.     See,   also.   Appendix    In- 
dex,   BANKS    AND    BANKING;    EXECUTORS. 
Amount  of  capital  stock  whicli  must  be  subscribed  before 

doing  business.     C.  C.  §  290a 35 

Appointment  of  corporation  to  act  as.     C.  C.  P.  §  1348 403 

Must  comply  witli  certain  conditions  before  can  use  word 

••(rust."     C.   C.   §  290I(. 35 

EXISTENCE. 

Articles    of    incorporation    nuist    state    term    for    which    or- 
ganized.    C.  C.  §  290,  subd.  4 33 

Begins  upon  issuance  of  certificate  of  incorporation  by  sec- 
retary of  state.     C.  C.  §  296 37 

Can  not  be  extended  by  amending  articles  of  incorporation. 

C.   C.   §362    78 

Certificate  of  continuance  filed,  where.     C.   C.  §287 32 

of    (.ontinuance,    issued    by    secretary    of    state.      Pol.    C. 

§416,   subd.    14    261 

of  extension  to  fifty  years,  filed,  where.     C.  C.  §  401 88 

of  rt'iiewal  of  existence  for  fifty  years,  to  be  filed.     Const., 

art.    XII,    §7 1:2 

Continuance  of,  may  be  for  time  prescribed  l)y  law.     C.  C. 

§  2S3 31 

uihI.t  code.     C.  C.  §  287 32 

Corporations   formed   prior   to   adoption   of   codes,    how   af- 
fected.     C.   C.    §  288 32 

Extension  of,  for  full  term  of  fifty  years  from  incorporation 
wlien  originally  incorporated  for  shorter  period.     C.  C. 

§401    SS 

renewal  of  incorporation  for  fifty  years  further.     Const., 

art.  XII,   §  7 12 

Fees   for   filing   and   issuing   certificates   of   continuance   of 

existence.     Pol.  C.  §  416,  subds.  13  and  14 261 

Forms  and   precedents  for  certificate  of  continuance.     See 
Appendix  Index. 


GENERAL  INDEX.  819 

EXISTENCE— Continued.  Page. 

Term    of,   articles   of  incorporation   must  set  forth.     C.   C. 

S  -!90,  subd.  4  3:! 

to  commence  upon  filing  articles  and  issuance  of  certifi- 
late.     C.  C.  §  290 37 

EXPLOSIVES. 

Record  of  to  be  kept.     Pen.  C.  §  375a 416 

FARM    NAME. 

Registered  as  trade-mark.     Pol.  C.  §  3196a 340 

Use  of,   as  trade-mark.     Pol.  C.   §  3196b 341 

FEES. 

County  clerk.     I'd.  C.  §  4300a 372 

Insurance  commissioner.     Pol.   C.   S  605 282 

Secretary  of  state.     Pol.  C.  §  416 261 

See  Secretary  of  State. 

FERRIES.      See    BRIDGES    AND    FERRIES. 

FISHWAYS. 

Fish,  screens  for  protection  of.     Pen.  C.  §629 429 

Fishways  must  be  provided  by  corporations  using  streams. 

Pen.   C.   S  637 430 

FOREIGN   CORPORATIONS. 

Actions  against,  evidence  required.     C.  C.  §  406 91 

against,   for  failure   to  file  copies  of  articles  of  incorpo- 
ration.    C.   C.   §  410 93 

can    not   be   maintained   or   defended   unless   articles   are 

filed  as  required.     C.  C.  §  406 65 

manner  of  commencing.     C.  C.  P.  §  411 384 

secretary  of  state,  service  on,  when  valid.     C.  C.  §  405 91 

security  for  cost's  may  be  required  by  defendant  in  action 

brought  by  foreign  corporation.     C.  C.  P.  §  1036 394 

security   for   costs,    not  given,   action   may  be  dismissed. 

C.   C.  P.   §  1037 395 

service  of  process  in  actions  against.     C.  C.   §  405 91 

summons,  publication  of,  in  certain  cases.     C.  C.  P.  §  412.   384 

Agent,  appointment  of,  required.     C.  C.  §  405 91 

revocation  and  designation  of  new.     C.  C.   §  406 91 

fee  for  filing  designation  of,  with  secretary  of  state.     Pol. 

C.    S  416,    subd.    20 261 

Articles    of    incorporation,    certified    copies    must    be    filed, 

where.      C.   C.    S  40S 93 

corporations   exempt   from    provisions    which    have    com- 
plied with  provisions  of  certain  acts.     C.  C.  §  410 93 

failure  to  file  articles,  penalty.     C.  C.  §  410 91 

fee  for  filing,  issuing  certified  copies,  etc.     See  Fees. 

not  filed  as  required,  effect  on  actions.     C.  C.   §406 65 

Building  and  loan  associations,  agent  of,  and  deposit  which 

must  be  made  before  doing  business.     C.  C.  §  646 207 

Sec,   also,   General   Index,    Building   and    Loan    Associa- 
tions;  .\ppendix   Index,    Building   and    Loan    Commis- 
sioners. 
Costs,  security  for,  when  plaintiff.     C.  C.  P.   §  1036 394 


820  GENERAL  INDEX. 

FOREIGN  CORPORATIONS— Continued.  Page. 

Costs,  security  not  given,  action  may  be  dismissed.     C.  C.  P. 

§  1037    395 

Designation  of  agent.     C.  C.  §  405 91 

revocation.     C.  C.  §  406 91 

Directors,    fraudulent    acts   by,    if   doing   business    in    this 

state.     Pen.  C.   §  571 428 

Elections,  at  meetings  hield  in  California,  certain  provisions 

to  apply.    C.  C.  §  307 45 

Executors.     See  General  Index,   Executors. 

Failure  to  file  copy  of  articles  of  incorporation,   penalty. 

C.  C.   §  410 93 

Fees,  articles  of  incorporation,  must  pay  same  as  domestic 

corporations.     C.  C.   §  409 93 

county  clerk.     Pol.  C.  §  4300a 372 

Insurance  commissioner.     Pol.   C.   §  605 282 

secretary  of  state.     Pol.  C.  §  416 261 

Fraudulent  or  unlawful  acts,  liability.     Pen.  C.  1571 42S 

Insurance  companies.     See  Insurance  Companies,   Foreign. 
Investment  companies.     See,   also,    Investment   Companies, 
General  Index, 
application    of   laws    relating    to    investment    companies. 

Pol.  C.  §  6351 307 

articles  of  incorporation,  filing  of  copy  of.     Pol.  C.  §  635c.   303 
bankruptcy,  action  by  attorney  general  to  declare.     Pol. 

C.  §  635i  306 

business   not   to   be   commenced    before   making  deposit. 

Pol.  C.  §  635k 307 

cash  or  securities  to  be  deposited  with  treasurer  of  state. 

Pol.   C.   §  635b 302 

enjoined   from   doing   business   for  non-compliance   with 

law.     Pol.  C.  §  635d 304 

examination  by  attorney  general.     Pol.  C.  §  635i 306 

loans,  out  of  reserve  fund,  limit.     Pol.  C.  §  635g 305 

penalties  for  violation  of  law.     Pol.  C.  §  635j 307 

reserve  fund,  creation  of.     Pol.  C.  §  635h 306 

reserve  fund,  limitation  of  loans  from.     Pol.  C.  §  635s 305 

securities  exclianged,  substituted  for  cash  deposit.     Pol. 

C.  §  635f 305 

Laws  of  California,  application  of.    Const.,  art.  XII,  $  15...     15 
Liability  of  stockholders,    same  as  domestic   corporations. 

C.   C.   §  322 55 

when  Incurred  by  officers  or  directors.     Pen.  C.  f  571 428 

Llc»ns«  tax.     See  Appendix  Index,   License  Tax. 

IVIInfng    corporations,   books   and   balance   sheets   open   for 

Inspection.     C.   C.   §  588 171 

See,  also,  Mining  Companies,  General  Index. 
Railroad,  same  rights  as  domestic  corporations.    C.  C.   J  407.     92 
See,  also.   Railroads,  General  Index. 

Statute  of  limitations,  entitled  to  benefit  of.    C.  C.  §  406 91 

Stockholders,  liability  of,  same  as  those  of  domestic  cor- 
porations.    C.  C.   §  322 55 

Sureties.     See,   also,    Insurance,    Fidelity   and  Surety,   Gen- 
eral  Index;    also.   Appendix   Index,    Bonds. 

Undertakings  or  bonds,  sureties  on.    C.  C.  P.  |  1056 J95 

sole  surety,  when.     C.  C.  P.  !l  1057 S96 


GENERAL  INDEX.  821 

FORMATION.     See,  also,  ARTICLES  OF  INCORPORATION; 

BY-LAWS;    DIRECTORS;    ELECTIONS;    MEMBERS; 

STOCKHOLDERS.  Page. 

Corporations    to    be    formed    undei'    general    laws.      Const., 

art.    XII,    §1 10 

Purpose  for  which  private  corporations  may  be  organized. 

C.   C.   §  28G 31 

FORMS.     See,  also.  Appendix   Index,   FORMS  AND  PRECE- 
DENTS. 
Assessment  for  purposes   of   taxation,   statement   required, 
blaniv  forms  for  to  be  furnislied  by  county  supervisors. 
Pol.   C.    §  3630 :^54 

FRANCHISES.      See,    also,    CITIES;    SUPERVISORS;    also. 
Appendix    Index,     FRANCHISES;     MUNICIPAL    COR- 
PORATIONS. 
Action  against  corporation  for  usurpation.     C.  C.  P.  §  803..    393 
Are  property,  subject  to  taxation.     Const.,  art.  XIII,   §1...     19 

Assessment  of,  where.     Pol.  C.  §  3628 351 

Defined  as  property,  for  taxation.     Pol.  C.  §  3617 348 

Existing  at  time  of  adoption  of  constitution,  not  valid  un- 
less operations  begun.    Const.,  art.  XII,  §  6 12 

Foreign    concessions,    franchises,    grants,    sale    of.      C.    C. 

§364    80 

Not  to  be  extended  by  legislature.     Const.,  art.  XII,  §  7 12 

Purchaser  of,  at  sale  under  execution  may  recover  pen- 
alties.    C.  C.   §  390 86 

at   sale   under   execution    must  conduct   business.      C.    C. 

§389    86 

Redemption  from  sale  under  execution.     C.  C.  §392 86 

Sale,   lease,  or  transfer  of,   requires   two  thirds  consent  of 

stockholders.     C.  C.  §  361a 77 

Sale  of,  situated  in  foreign  country.     C.  C.  §  364 80 

under  execution.     C.  C.  §  388 85 

under  execution,  where  made.     C.  C.  §393 86 

Supervisors,  general  powers  to  grant.     Pol.  C.  §  4041 369 

when  majority  of  supervisors  are  interested,  action.     Pol. 

C.    §  4323 374 

Transfer  of,   does   not   release   liability.     Const.,    art.   XII, 

§  10 13 

FRATERNAL  AND  SECRET  SOCIETIES.  See,  also,  BE- 
NEVOLENCE AND  CHARITY;  COLLEGES;  CO-OP- 
ERATIVE ASSOCIATIONS;  INSURANCE,  MUTUAL; 
NON-PROFIT    CORPORATIONS. 

Assessment   Insurance   provisions  not  applicable  to.     C.   C. 

§  453p 119 

Exempt  from  insurance  laws  of  California.     Pol.  C.  §  630..   298 

FRAUDS.  See,  also,  ADVERTISEMENTS;  REPORTS;  also. 
Appendix   Index,    FRAUDULENT   REPORTS. 

Certificates,    records,    or    reports,    false,    by   officer.      C.    C. 

§  316 51 

Management  of  corporations,  persons  embraced  in  term 
"director."     Pen.  C.  |  572 428 


S22  GENERAL  INDEX. 

FRIENDLY    SOCIETIES.       See,    also,    NON-PROFIT    COR- 
PORATIONS.                                                                                Page. 
May  hold  cci  tain  teal  estate.     C.  ('.  S  59C 1711 

GAS   COMPANIES.      See    LIGHTING   CORPORATIONS. 

GOVERNOR. 

Examination    into   affairs   of  corporations   may  be   ordered 

by.     C.  O.   §  382 84 

May  give   instructions  to  institute  actions  against  foreign 

corporations  failing  to  file  articles.     C.  C.  §  410 91! 

May    require   inqniry   into   affair.s   of   corporations.      Pol.    V. 

S  :;x(i,  subd.  G iMid 

HALL   ASSOCIATIONS.     See,   also,    CO-OPERATIVE    BUSI- 
NESS     ASSOCIATIONS;      NON-PROFIT      CORPORA- 
TIONS. 
Benevolent    or    charitable    societies,     hall    as.^oiiations    of, 

number  of  direclcns  for.     C.  C.   Ji  30;") 4  1 

See.  also,   Benevolence  and  Charity. 

HOLIDAYS. 
Are  non-judicial  d;iys,  e.xcept  for  certain  purposes.     C.  C.  P. 

s;  134     380 

Appointments  on  non-judicial  days.     C.  C.  P.  §  135 3S0 

Designated  by  Civil  Code.     C.  C.  §  7 27 

by  Code  of  Civil  Procedure.     C.  C.  P.  8  10 377 

additional   provisions   when   falling  on   Sunday,    rule   for. 

C.   C.  P.   S  11 378 

by  Political  Code.     Pol.  C.  §  10 2r.S 

additional   provisions    when    falling   on    Sunday.      Pol.    C. 

§11  250 

Lincoln  day.     See  Appendix  Index,    Holidays. 

Special,  restriction  of  judicial  business  on.     C.  C.  P.  S  135..   380 

HOMESTEAD    CORPORATIONS. 

Articles    of    incorporation    and   by-laws    nuist    be    furnished 

shareliolders.     C.  C.   Si  558 159 

Borrow  and  loan  money,  for  what  purpose.     C.  C.  §  5fi0 159 

By-laws,  special  provisions  required.     C.  C.  §558 159 

Dividends,    on    termination    of    corporate    existence.      C.    C. 

S  5(;3 161 

Existence,   term  of,   ten  years.     C.   C.   S  557 158 

Indebtedness,  liow  may  be  incurred.     C.  C.  §560 159 

Installments,    time    of   payment    must    be    specified    in    by- 
laws.     C.    C.    §  558 159 

Premiums,  payment  of.     C.  C.  §  564 161 

Property,  division  of,  at  termination  of  corporation.     C.  C. 

S  563    161 

limitation  of  amount  to  be  held.     C.  C.  §  562 160 

must  not  be  handled  for  speculation.     C.  C.  §  562 160 

Report  of  condition  to  be  published  annually.     C.   C.   §  565.    161 

ptiblication  in  certain  cases.     C.  C.  §  566 162 

Rights  and  powers,  forfeiture  of,  for  violation  of  law.     C.  C. 

§562 160 


GENERA!.   INDEX.  823 

HOMESTEAD   CORPORATIONS— Continued.  Page. 

Stock,  shares  of,  delinquent  sale  of.     C.  C.  S  5.59 150 

e.Kempt  from  attachment  or  sale,  to  certain  limit.     C.  C.  P. 

§  690,  subd.  11 302 

when   held  by  children.     C.   C.   §  561 160 

wlien  lield  )iy  married  women.     C.  C.  S  561 160 

Termination  of  corporate  existence,  proceedings  for  divi- 
sion and  dissolution.     C.  C.   §  563 161 

HORSELESS  VEHICLES. 

Insurance  of.     Seo   Insurance,   Team   and   Vehicle. 
Roads  for.     t^ee   Roads,  Toll;    Roads,   Wagon. 

IMMUNITIES. 

Limitations  on.     Const.,  art.  I,   §  21 2 

Special,    not   to   be   given   by   legislature.      Const.,    art.    IV, 

§  25,  subd.  19 4 

IMPROVEMENTS. 

Assessment  of,  sepai-ate  from  land.     Pol.  C.  S  3627 350 

Defined  for  purposes  of  taxation.     Pol.  C.  §  3617,  subd.  4.  .  .  .    348 
See,  also.  Property;  Taxation. 

INCOME   TAX. 

Assessment    and    collection,    annnnil    and    iiiaiinei-.      Const.. 

art    XIII.    S  II 23 

National  Income  tax.  Sec  .\ppendix  Index.  Federal  Cor- 
poration  Tax   Law. 

INDEBTEDNESS.      See    BONDS    AND    INDEBTEDNESS. 

INDUSTRIAL    ORGANIZATIONS. 

Incorporation  as  co-operative  Ijusiness  associations,  pro- 
vision  foi-.      C.    C.    S  653b 214 

See,  also.  Non-Profit  Corporations. 

INJUNCTION. 
To  suspend  s<ncial  and  ordinary  business.     C.  C.  P.  S  531..    387 

INSURANCE     COMMISSIONER.       See,     also,     INSURANCE 
COMPANIES. 
Actions  against    insurance   conmiissiducr,    right    of.      Pol.    C. 

S  631      : ' :;i)S 

Actuary   ma.v   lie  cini>loycd  b.\-.      I'ul.   C.   Si  601 1'77 

Agents  and  solicitors,  list  of,  to  Vie  kept.     Pol.  ('.  *i  6.!:; 200 

power  of  attorney.      Pol.    C.    S  633 200 

Annual  report  to  governor.     Pol.  C.   S  505 270 

Assessors    must   be    furnished    with    certain    data.      I'ol.    V. 

S  625     295 

Attachments  may  be  issued  by,  foi-  disobedience  of  sub- 
poenas.     Pol.   C.   i*  599 276 

Assessments  for  expenses  may  be  levied.     Pol.  C.  §  606 283 

Bond,  official,  of  insurance  commissioner.     Pol.  C.  §  593....    266 
Certificates,    ceitain.    to   be   submitted    to   attcn-ney   general 

for  examination.     Pol.   C.   S  506a 274 

of  authority  for  doing  business  to  be  issued  to  insurance 
companies.     Pol.   C.   §  506 272 


824  GENERAL  INDEX. 

INSURANCE    COMMISSIONER— Continued.  Pace. 

Certificate,   of  autliority   for  doing  business,    revocation   of 

when   insolvent.     Pol.  C.   §  603 280 

of  authority   for  doing:  business,   when    may   be   restored 

after  revocation.     Pol.  C.   S  603a 281 

of  authority   to   do   business   issued   to   foreig:n   company, 
revocation  in  case  of  transfer  of  action  to  United  States 

courts.      Pol.    C.    §  608 284 

of  deposit  of  securities.     Pol.  C.  §  619 292 

Compliance  with  law  must  be  required.     Pol.  C.  §626 296 

Examine  financial  condition  of  companies.     Pol.  C.  §  595 270 

insolvent  companies,   alleged.     Pol.   C.   §597 274 

.securities  deposited.     Pol.  C.  §  621 293 

Deposit  of  securities  with.     Pol.  C.  §  618 291 

Deposits  from   life  companies,   and  registration  of  policies. 

Pol.  C.   §  634 300 

required  from  foreign  companies.     Pol.  C  §  594a 269 

Documents  to  be  filed  with.     Pol.  C.  §  607 283 

Duties  of,  in  general.     Pol.  C.   §  595 270 

Eligibility.      Pol.    C.    §588 265 

Estimation    of    condition    of    liability    companies.      Pol.    C. 

§  602a    278 

Fees  to  be  paid  to,  by  companies.     Pol.  C.  §  605 282 

Fines,    assessments,    etc.,    payable    on    demand.      Pol.    C. 

§  634b    301 

Examination  of  affairs  of  domestic  corporation  doing  busi- 
ness of  mutual  assessment  insurance.     C.  C.  §4531 117 

Expenses,  bills  for,  in  connection  with  mutual  assessment 

companies.     C.  C.  §  453o   119 

Insolvency  proceedings.     Pol.  C.   §  604a 282 

Insolvent   company   reported    to   attorney  general.     Pol.   C. 

§  604 281 

Issue    license    to    foreign    mutual    assessment    companies. 

C.   C.    §  453i 116 

License  to   citizen  to   solicit  insurance  for   companies  not 
authorized   to  transact  business  in   this  state.     Pol.  C. 

S  596 272 

Life  policies,  registration  of,  and  deposit  of  securities  with 

treasurer  of  state.     Pol.  C.  §  034 30<t 

separate  valuation  of.     Pol.  C  §  628 296 

valuation  of.     Pol.  C.  §  629 297 

May   require   information   from    companies   concerning   pol- 
icies.    Pol.   C.   §  598 27r, 

Must  approve  name  and  issue  certificate  to  corporation  for 
mutual    insurance    on     the    assessment    plan.       C.     C. 

§  453e    114 

Mutual    companies,    organized    under    act    of   1851,    annual 

report  of.     Pol.  C.   §  614 289 

foreign,  assessment,  issuance  of  license  to.     C.  C.  §  453i.  116 

life  and  casualty,  revocation  of  license.     C.  C  §450 106 

Name  of  companies  to  be  approved.     Pol.  C.  §  609 285 

Obligations    imposed    by    other    states    or    countries,    to    be 
observed.     Pol.  C.  §  618 291 


GENEBAIi  INDEX.  825 

INSURANCE    COMMISSIONER— Continued.  Page. 

Obligations,    or    proliibitions,    imposed    by    otlier    states    or 

countries,  excessive.     Pol.  C.  §  622 29o 

Office,  expense  of.     Pol.  C.  §  591 265 

to  be  in  San  Francisco.     Pol.  C.  §  592 265 

Papers  required  to  be  filed  by  companies.     Pol.  C.  §  607....   283 
Penal    offense,    district    attorney    to    be    notified.      Pol.    C. 

§  632 299 

Penalties,  collected  from   companies,  for  failure  to  file  re- 
quired statements  or  stipulations.     Pol.  C.  §  617 291 

payable   on   demand.     Pol.    C.    §  634b 301 

Policies,  examination  of,  power.     Pol.  C.  §  596 272 

lost  or  destroyed,  duty  in  relation  to.     Pol.  C.  §  598 275 

Policyholder,  information  furnished  to.     Pol.  C.  §598 275 

Restoration  of  authority  after  revocation.     Pol.  C.  §  603a...   281 
Revoke  certificates  of  insolvent  companies.     Pol.  C.  §  603...   280 

Records  kept  by  commissioner.     Pol.  C.  §  600 276 

Salary  of  commissioner.     Pol.  C.  §  589 265 

of  deputy.     Pol.  C.  §  589 265 

Securities,  deposit  of.     Pol.  C.   §  618 291 

examination  of.     Pol.  C.  §  621 293 

withdrawal  of.     Pol.  C.   §  620 292 

Service  upon  foreign  companies.     Pol.  C.  §616 290 

Special  fund  provided.     Pol.   C.   §  591 '265 

Subpoenas  may  be  issued.     Pol.   C.   599 276 

Surety  companies,  list  of,  furnished  to  county  clerks.     Pol. 

C.    §  625a 295 

Tax  on  gross  premiums.     Pol.  C.   §  622a 294 

Verification   of   reports   and   statements   required.      Pol.    C. 

§  610    285 

Withdrawal    from   state,    notice   of,    must   be   published   by 

commissioner.     Pol.  C.  §  631a 298 

INSURANCE   COMPANIES.     See,   also,    INSURANCE    COM- 
MISSIONER;   also.    Appendix    Index.    INSURANCE. 
Action   against   insurance  commissioner,   right  of.     Pol.    C. 

§  631 298 

to    recover   on    contract   of    insurance,    defendant   claim- 
ing exemption,  what  must  set  up.     C.  C.  P.  §  437a 386 

Agent,  license  to  procure   insurance  in   certain  companies. 

Pol.  C.  §  596 272 

power  of  attorney.     Pol.  C.   §  633 299 

Annual  statements,  contents  of.     Pol.  C.   §612 285 

forms  for.     Pol.  C.   §  615 289 

to  be  tiled.     Pol.   C.   §  611 285 

Application    of   provisions    for   co-operative    business   asso- 
ciations.    C.  C.   §  6531 219 

of    provisions    for    non-profit    co-operative    corporations. 

C.  C.  §  653za 230 

Articles  and  certificates  to  be  filed  with  insurance  commis- 
sioner.    Pol.  C.  §  607 283 

Assessments  for  expenses  of  commissioner.     Pol.  C.  §606..  283 
Bond  required  from  agent  for  company  not  authorized  to 
do  business  In  California.    Pol.  C.  §  596 272 


826  GENERAL  INDEX. 

INSURANCE    COMPANIES— Continued.  Paoe. 

Books  of  subscription  for  unsubscribed  capital  stock.     C.  C. 

S   IH   i'i) 

Burning   or   destroying,    willful,   of   insured  property.      Pen. 

C.   S  548 422 

Capital  and  accumulations,  how  invested.     C.  C.  §421 97 

Capital  stock,  definition  of  words.     Pol.  C.  §  634a 301 

Certificate   of   authority   required   to   do   business.      Pol.    C. 

§  596    272 

restoration,  after  revocation.     Pol.  C.  §  603a 281 

revocation,  of  insolvent  companies.     Pol.   C.   §603 280 

surrender  of.     Pol.   C.   §  595 270 

Certificate    of    deposit    of   securities,    issuance   of.      Pol.    C. 

!j  Clii    292 

Classification  of  insurance.     Pol.  C.   §  594 266 

Company,  definition  of  woid.     Pol.  C.  §  634a 30] 

Compliance  with  law  required.     Pol.  C.  §  626 296 

Contract  of  insurance,  action  to  recover  upon,  what  defend- 
ant claiming  exemption  must  set  up.     C.  C.  P.  §  437a. .    386 

Deposit  of  securities.     Pol.  C.  §  618 291 

Directors  liable  for  loss  in  certain  cases.     C.  C.  §  418 96 

Dividends,  on  what  paid  and  when  declared.     C.  C.  §  417...     96 

Fees  of  insurance  commissioner.     Pol.  C.  §  605 282 

Fines,    assessments,    etc.,    payable    on    demand.      Pol.    C. 

§  634b    301 

Fraudulent  claim  for  insurance,  penalty.     Pen.  C.  §549 422 

(lestruition  of  property  by  insured,  penalty.    Pen.  C.   §548.    422 

I  nsol vency,  defined.     Pol.  C.  §  602 277 

inoceedings.     Pol.  C.   §  604a 282 

Insolvent    companies,    revocation    of    certificates.      Pol.    C. 

§603 280 

restoration  of  authority  after  revocation.     Pol.  C.  §  6(i3a . .   281 

to  be  reported  to  attorney  general.     Pol.  C.  §  604 281 

to  sulimit  books  for  examination.     Pol.  C.  §597 274 

Insurance   classified.      Pol.   C.    §  594 266 

Liabilities,  estimation  of.     Pol.  C.  §  602a 278 

License    to   agent   to   procure    insurance    in    companies   not 

authorized  to  do  business  in  this  state.     Pol.  C.  §  596...    272 
Name,    approval    of    by    insurance    commissioner.      Pol.    C. 

S  609 285 

Obligations    or    prohibitions    imposed    by    other    states    or 

(•(iuiitrics.  compliance  witli.     Pol.  C.  §  618 291 

when   imposed  on   California   companies   by   other   states 
or  countries,    in   excess   of  requirements   of   this   state. 

Pol.   C.    §  622 293 

Papers  which  must  be  filed  with   insurance  commissioner. 

Pol.  C.  §  607 283 

Payments  on  gold  basis.     Pol.  C.   §  627 296 

Penal    offense,    district    attorney    to    be    notified.      Pol.    C. 

S632 299 

Penalties  for  failure  to  file  required  statements  or  stipula- 
tions.    Pol.  C.  §  617 291 

payable  on  demand.     Pol.  C.  §  634b 301 


GENERAL  INDEX.  SSiT 

INSURANCE    COMPANIES— Continued.  Vacr. 

Policy,  how  i.ssiied  and  by  whom  signed.     C.  C.  §416 Im; 

information  concerning,  may  be  obtained.     Pol.  C.  §598..  27.'> 

lost,  stay  of  rights.     Pol.  C.  §  598 275 

Policyholders    may    obtain    certain    information.      Pol.    C. 

§  598 275 

Power  of  attorney  of  agent.     Pol.  C.  §  633 299 

Premiums,  tax  on  gross.     Pol.  C.   §  622a 294 

Real  property,  what  may  be  held.     C.  C.  §  415 95 

Restoration  of  authority  after  revocation.     Pol.  C.   §603a..  281 

Statements,  annual,  contents  of.     Pol.  C.  §612 285 

filed  witii  insurance  commissioner.     Pol.  C.  §611 285 

forms  for.     Pol.  C.   §  615 289 

penalty  for  failure  to  file.     Pol.  C.  §  617 291 

Securities  deposited  witli  insurance  commissioner.     Pol.  C. 

§  618    291 

e.xamination  of.     Pol.   C.    §  621 293 

withdrawal  of.     Pol.  C.  §  620 292 

Special  license,  bond  required  by  agent.     Pol.  C.  §  596 272 

Surrender  of  certificate  issued  by  commissioner.     Pol.     C. 

§  595    270 

Tax  on  gross  premiums.     Pol.  C.  §  622a 294 

Taxes,   etc.,   when  payable.     Pol.  C.   §  634b 301 

Verification  of  reports  and  statements.     Pol.  C.  §  610 285 

INSURANCE       COMPANIES,       ACCIDENT,        DISABILITY, 
HEALTH    OR    SICKNESS. 

Annual   statement,  contents  of.     Pol.   C.    S  613 287 

Capital  stock  required.     Pol.  C.  §  594 266 

Classification  of  accident,  disability,  sickness  or  healtli   in- 
surance.     Pol.   C.    §  594,   subd.   6 266 

Insolvent  condition,  what  constitutes.     Pol.  C.  §602 277 

Investments  allowed.     C.  C.  §  421,  subd.  6 97 

Reserve  fund,  computation  of.     Pol.  C  S  602a 27X 

INSURANCE    COMPANIES,    BOILER   AND    MACHINERY. 

Capital  stock  required.     Pol.  C.  §  594 266 

Classification   of  boiler  and  machinery  insurance.     Pol.   C. 

S  594,  sulxl.  9   266 

Insolvent  condition,  what  constitutes.     Pol.  C.  §602 277 

INSURANCE   COMPANIES,    BURGLARY. 

Capital  stock  required.     Pol.  C.   §594 266 

Classification  of  t)urglary  insurance.     Pol.  C.  §  594,  subd.  10.  266 

Insolvent  condition,  what  constitutes.     Pol.  O.  §602 277 

INSURANCE   COMPANIES,   COUNTY   FIRE.     See  Appendix 
Index,    INSURANCE. 

INSURANCE   COMPANIES,   CREDIT. 

Capital  stock  required.     Pol.  C.  §  594 266 

Classification  of  credit  insurance.     Pol.  C.   §594,  subd.   11..  266 

Insolvency,  condition  of.     Pol.   C.   §602 277 

INSURANCE   COMPANIES,    DISABILITY.     See  ACCIDENT, 
DISABILITY,    HEALTH    OR    SICKNESS. 


S28  6ENKKAL  INDEX. 

INSURANCE  COMPANIES,  DISCOVERY  OF  FIRE  AND 
SAVING  OF  PROPERTY  AND  HUMAN  LIFE  FROM 
CONFLAGRATION.     See   UNDERWRITERS. 

INSURANCE  COMPANIES,   EMPLOYEE'S  LIABILITY.       Page. 

Capital  stock  required.     Pol.  C.  §  594 266 

Classification    of    employee's    liability    insurance.      Pol.    C. 

§  594,    subd.    8 266 

Condition,  how  estimated.     Pol.  C.  §  602a 278 

Insolvency,  what  constitutes.     Pol.  C.   §602 277 

INSURANCE      COMPANIES,      FIDELITY      AND     SURETY. 

See,  also.  Appendix   Index,    BONDS. 

Bonds,  or  undertakings  by,  requisites  of.     C.  C.  P.  §  1057...  396 

Capital  stock  required.     Pol.  C.  §  594 266 

Classification  of  fidelity  and  surety  insurance.     Pol.  C.  §  594, 

subd.    5 266 

I  nsol vency,  condition  of.     Pol.  C.  §  602 277 

May    become    sole    sureties,    on    bonds    or    undertakings. 

C.  C.  P.   §1056 395 

Official  bonds  accepted  as  sole  security  on.     Pol.  C.  §955..  308 

less  than  the  penal  sum.     Pol.  C.  §  956 308 

Undertakings  or  bonds  by,  requisites  of.     C.  C.  P.  §  1057...  396 

INSURANCE   COMPANIES,   FIRE.     See,  also,   INSURANCE, 
MARINE;    also.    Appendix    Index,    INSURANCE. 
Articles  of    incorporation    to   designate    scope   of   business. 

C.   C.   §  426 99 

Assessments  on  capital  stock  of  corporation.    C.  C.  332 63 

Capital  stock,  amount  required.     Pol.  C.  §  594   266 

assessment  of.     C.  C.  §  332,  subd.  3 63 

investment  of.     C.  C.  §  421,  subd.  6 97 

must  be  paid  up  in  cash  within  twelve  months.     C.   C. 

§  424 99 

paid  up,  certificate  of  to  be  filed.     C.  C.  §  425 99 

Classification  of  fire  insurance.     Pol.  C.  §594,  subd.  2 266 

Dividends,   amount   to  be  reserved  before   making.     C.   C. 

§  429 100 

amount  to  be  reserved  before  making,  when  capital  less 

than  $200,000.    C.  C.  §  430 100 

Insolvency,  what  constitutes.     Pol.  C.  §  602 277 

Investments  allowed.     C.  C.  §  421,  subd.  6 97 

Limit  of  risk.     C.  C.  428 100 

Policy  not  to  be  issued  until  25  per  cent  of  capital  paid  up. 

C.  C.   I  424 99 

standard  form  of.    Act  of  1909 614 

Property  which  may  insure.     C.  C.  §  426 99 

Reinsurance.     C.  C.   §  426 99 

INSURANCE  COMPANIES,  FOREIGN.  See,  also,  FOR- 
EIGN CORPORATIONS;  INSURANCE  COMMIS- 
SIONER; INSURANCE  COMPANIES;  also,  Appendix 
Index,    BONDS;    INSURANCE. 

Action  against  insurance  commissioner,   right  of.     Pol.   C. 

J  631    298 

Action  not  to  be  transferred  to  United  States  courts.     Pol. 

C.    §  608    384 


QENEBAL  INDEX.  829 

INSURANCE   COMPANIES,    FOREIGN— Continued.  Page. 

Agent  must  be  designated.     Pol.  C.  §  616 290 

power  of  attorney.     Pol.  C.  §  033 299 

procuring  business  for  company  wliich  has  not  complied 

with  laws,  penalty.     Pen.  C.  §  439 420 

Annual  statements,  contents  of.     Pol.  C.  §612,  subd.  6 285 

to  be  filed.     Pol.  C.  §  611 285 

forms  for.     Pol.  C.  §  615 289 

life,  health  and  accident  companies.     Pol.  C.   §613 287 

penalties  for  failure  to  file.     Pol.  C.  §  617 291 

Articles  and  certificates  to  be  filed  with  insurance  commis- 
sioner.    Pol.  C.  §  607 283 

Bond  required  before  commencing  business.     Pol.  C.  §  623..   294 

separate,  when  required.    Pol.  C.  §  623 294 

Business,  withdrawal,  notice  of.     Pol.  C.  §  631a 298 

Capital  stock,  definition  of  words.    Pol.  C.  §  634a 301 

required,  amount  of.     Pol.  C.  §  594 266 

Certificate  to  do  business  required.     Pol.  C.  §596 272 

Compliance  with  law  required.     Pol.  C.  §  626 296 

Company,  definition  of  word.     Pol.  C.  §  634a 301 

Deposit  of  securities.     Pol.  C.  §  594a 269 

securities  required,  additional,  when  additional  are  re- 
quired of  domestic  companies  by  other  states  or  coun- 
tries.    Pol.  C.  §  622. 293 

Documents,  certain,  must  be  filed  with  insurance  commis- 
sioner.    Pol.  C.  §  607 283 

Fees,  county  clerk.     Pol.  C.  §  4300a 372 

insurance  commissioner.     Pol.   C.   §605 282 

secretary  of  state.     Pol.  C.  §  416 261 

Fines,    assessments,    etc.,    payable    on    demand.      Pol.    C. 

§  634b 301 

Joint  stock  and  mutual  companies,  assets  required  in  lieu 

of  capital  stock.     Pol.  C.  §  594 266 

Laws,  excessive,  of  other  states  or  countries,  when  applied 
to  domestic  corporations,  same  laws  to  be  applied  in 
return  to  companies  of  such  other  states  or  coun- 
tries.    Pol.  C.   §  622 293 

Life  policy  must  contain  certain  provisions.    C.  C.  §  450....   106 
Live  stock,  assessment  plan.     See  Appendix  Index,   Insur- 
ance. 
Mutual  assessment  companies,  certified  copy  of  charter  to 

be  filed  with  insurance  commissioner.     C.  C.  §  4531 116 

license  to  be  issued  to.     C.  C.  §  453i 116 

must  file  annual  statement  with  insurance  commissioner. 

C.  C.  §  4531 117 

See,  also.   Insurance,  Mutual  Assessment  Plan,  General 
Index. 
Mutual  or  joint  stock  companies,  assessment  required  in  lieu 

of  capital  stock.     Pol.  C.  §  594 266 

Obligations    or    prohibitions,    imposed    by    other    states    or 

countries,  applied  in  return.     Pol.  C.  §  622 293 

Papers  required  to  be  filed  with  insurance  commissioner. 

Pol.  C.  8  607 283 

Payments  on  gold  basis.     Pol.  C.  §  627 296 


830  GENERAL  INDEX. 

INSURANCE    COMPANIES,    FOREIGN— Continued.  Page. 

Penal    offense,    disti-ict    attornev    to    be    notified.      Pol.    O. 

S  t!32    20;t 

Penalties  for  failure  to  file  required  statements  or  stipula- 
tions.    Pol.  C.  §  617 291 

payable  on  demand.     Pol.  C.  §  634b 301 

Policies,  procuring  of,  for  companies  not  authorized  to  do 

business  in  this  state,  conditions.     Pol.  C.  §596 272 

Power  of  attorney  of  agent.     Pol.  C.  §  633 299 

Premiums,  tax  on  gross.     Pol.  C.  §  622a 294 

Securities,  deposited  with  insurance  commissioner.     Pol.  C. 

§618 291 

examination  of.     Pol.   C.   §  621 293 

issue  of  certificates  for  securities  deposited.     Pol.  C.  §  619.   292 

must  be  deposited  bj'.     Pol.  C.  §  594a 269 

when  laws  of  other  states  or  countries  require  additional 
securities    of    domestic    corporations,    retaliation.      Pol. 

C.   §622    293 

withdrawal  of.     Pol.  C.  §  620 : 292 

Service  of  notice  or  suinmons.     Pol.  C.  §  616 290 

Statements,  annual,  contents  of.     Pol.  C.  §612,  subd.  6 285 

forms  for.     Pol.   C.   §  615 289 

to  be  filed.     Pol.  C.  §  612 285 

penalty  for  failure  to  file.     Pol.  C.  §  617 291 

Sureties.      See    Foreign    Corporations;    Insurance,    Fidelity 
and  Surety;  also,  Appendix  Index,   Bonds. 

Tax  on  gross  premiums.     Pol.  C.  §  622a 294 

Verification  of  reports  and  statements.     Pol.  C.   §610 285 

Withdrawal  from  state.     Pol.  C.  §  595 270 

from  state,  notice  of.     Pol.  C.  §  631a 298 

INSURANCE     COMPANIES,     FRATERNAL    AND     SECRET 

SOCIETIES. 
Are    not    affected    by    laws    governing    mutual    assessment 

companies.     C.  C.   §  453p 119 

Exempt  from  insurance  laws  of  California.     Pol.  C.  §  630...   298 

INSURANCE    COMPANIES,    LIFE. 
Accumulations,  investments  allowed.     C.  C.  §421,  subd.  6..     97 
Annual    statements    to    insurance    commissioner.      Pol.    C. 

§  613    287 

Capital  stock,  investment  of.     C.  C.  §421,  subd.  6 97 

required  amount.     Pol.  C.  §  594 266 

Classification  of  life  insurance.     Pol.  C.  §594,  subd.  1 266 

Dividends,  liow  and  wlien  made.     C.  C.  §  452 107 

Exemption      from     execution,     of     moneys     and     benefits. 

C.  C.  P.  §  690,  subd.  18 392 

Insolvency,  what  constitutes.     Pol.  C.  §  602 277 

Loans  on  policies.     C.  C.  §  421,  subd.  7 97 

Policy  must  contain  certain  provisions.     C.  C.  §  450 106 

Policies,  exempt  from  attachment  and  execution.     C.  C.  P. 

§  690,    subd.   18 392 

legistration  of,  and  deposit.     Pol.  C.  §  634 300 

valuation  of,  by  actuary.     Pol.  C.  §  601 277 


GENERAT.  INDEX.  831 

INSURANCE    COMPANIES,    LI FE— Continued.  Page. 

Policies,  valuation  of,  separate.     Pol.  C.   S  fi2.S 29t) 

valuation  of,  what  basis.     Pol.  C.  S  C29 297 

Statements,  annual,  contents  of.     Pol.  C.  S  filS 287 

INSURANCE    COMPANIES,    MARINE.      See,    also,    INSUR- 
ANCE,   FIRE. 
Articles    of    incorporation    to    designate    scope    of    business. 

C.   C.   S  426 99 

Assessment  on  capital  stock  of  corporation.     C.  C.  §  .3.32....  63 

Capital  stock,  amount  required.     Pol.  C.  §594 266 

assessment  of.     C.   C.   §  332,   subd.   3 63 

investment  of.     C.  C.   S  421,  subd.  6 97 

must  be  paid   up  in   cash  within   twelve   months.     C.   C. 

S  424 99 

r>aid  up,  certificate  to  be  filed.     C.  C.  §  425 99 

Classification  of  marine  insurance.     Pol.   C.   §  594,  subd.  3. .  266 
Dividends,   amount   to   be   reserved  before   making.     C.    C. 

S  429  100 

amount  to  be  reserved  before  making,   when  capital  less 

than  $200,000.     C.  C.  §  430 100 

Insolvency,  what  constitutes.     Pol.  C.  §  602 277 

Investments  allowed.     C.  C.  §  421,  subd.  6. .  .' 97 

Limit  of  risk.     C.  C.  §  428 100 

Policies  not  to  be  issued  until  25  per  cent  of  capital  paid 

up.     C.  C.   §  424 99 

Property  which  may  insure.     C.  C.  §  426 99 

Reinsurance.     C.  C.   §  426 99 

INSURANCE    COMPANIES,    MISCELLANEOUS. 

Capital  stock  reciuired.     Pol.  C.   S  594 266 

Classification    of    misc'cllaneous    insurance.      Pol.    C.    §  594, 

subd.  14    266 

Insolvency,  condition  of,  what  constitutes.     Pol.  C.   §602...  277 

INSURANCE  COMPANIES,  MUTUAL,  ASSESSMENT, 
LIFE,  HEALTH,  ACCIDENT,  ANNUITY  OR  EN- 
DOWMENT. 

Agent    not    to    solicit    until    certain    requirements    are    met. 

C.   C.   §  453e 114 

Annual  statement  to  be  filed  with  insurance  commissioner. 

r.   C.  §  4531 117 

Application  for  insurance,  requirements.     C.  C.  §  453j 117 

Attachments  and  executions  not  to  apply  to  benefits  there- 
under.    C.  C.  §  453k 117 

Certificate  to  be  issued  to  by  insurance  commissioner.     C.  C. 

§  453e 114 

Contracts,  contents  and  effect  of.     C.  C.  §  453g 115 

defined  and  prescribed.     C.   C.  §  453d 113 

limitations  upon.     C.  C.  §  453j 117 

Deposit  required.     C.  O.  §  453e Ill 

Discontinuance    of    business,    disposition    of    reserve    fund. 

C.  C.  §  453h 115 

Emergency  fund  must  be  accumulated.     C.  C.  §  453h 115 


882  OENEBAL  INDEX. 

INSURANCE   COMPANIES,    ETC.— Continued.  Page. 

Existing    corporations,    right    of    to    reincorporate.      C.    C. 

§  453f in 

Expenses  of  insurance  commissioner,  provision  for.     C.  C. 

§  4530    119 

Formation  of  corporations.     C.  C.  §  453e 114 

Fees  paid  to  insurance  commissioner.     C.  C.  §  453n 11'.^ 

Foreign  companies.     See  Foreign  Insurance  Companies. 
Fraternal    and    secret    societies    exempt   from    certain    pro- 
visions.    C.  C.  §  453p 119 

insurance    commissioner    to    present    bills    for    certain    ex- 
penses in  connection  witla.     C.  C.  §  453o 119 

Membership  required  before  doing  business.     C.  C.  §  453e..   114 
Name  of,  to  be  approved  by  insurance  commissioner.    C.  C. 

§  453e 114 

Policies,    lapsing    of,    forbidden,    without    specified    notice. 

C.  C.  §  453m lis 

Pre-existing  companies,  rights  of.     C.  C.  §  453f 114 

Reserve  fund  must  be  accumulated.     C.  C.  §  453h 115 

INSURANCE  COMPANIES,  MUTUAL,  ASSESSMENT,  LIVE 
STOCK,  LIFE,  HEALTH  AND  ACCIDENT.  See  Ap- 
pendix   Index,    INSURANCE. 

INSURANCE  COMPANIES,  MUTUAL,  BENEFIT  AND 
LIFE. 

Articles  of  incorporation.     C.  C.  §  452a 108 

Assessments,  how  levied.     C.  C.  §  453 109 

By-laws  may  provide  for  what.    C.  C.  §  453 109 

Formation  of.     C.  C.  §  452a 108 

INSURANCE  COMPANIES,  MUTUAL,  FIRE.  See  Appendix 
Index,    INSURANCE. 

INSURANCE  COMPANIES,  MUTUAL,  LIFE.  HEALTH, 
ACCIDENT. 

Capital  stock  required.     C.  C.  §  437 102 

Directors,  alteration  of  number  of.     C.  C.  §  443 105 

Dividends,  how  and  when  made.     C.  C.  §  452 107 

Fixed  capital,  constituted,  how.     C.  C.  §  439 103 

declaration  of,  to  be  filed.     C.  C.  §  440 104 

Guarantee  fund  required.     C.  C.  §  437 102 

what  shall  constitute.     C.  C.  §  438 103 

Guarantee  notes  and  interest  thereon.     C.  C.  §  441 104 

Policy  must  contain  certain  provisons.     C.  C.  §450 106 

Policyholder  for  life,  right  of  to  vote.     C.  C.  §  442.* 105 

Premiums,  payment  of.     C.  C.  §  446 105 

Shares,    limit   of    number   of,    which    may    be    held.      C.    C. 

§  445    105 

INSURANCE    COMPANIES,    PLATE    GLASS. 

Capital  stock  required.     Pol.  C.  §  594 266 

Classification    of    plate    glass    insurance.       Pol.     C.     §  594, 

subd.  7 266 

Insolvency,  condition  of,  what  constitutes.     Pol.  C.  §602...  277 


GENERAL  INDEX.  833 

INSURANCE   COMPANIES,   SPRINKLER.  Page. 

Capital  stock  required.     Pol.  C.  5  594 26fi 

Classification  of  sprinkler  insurance.     Pol.  C.  §  594,  subd.  12.   266 
Insolvency,  condition  of.  what  constitutes.     Pol.  C.  §  602...   277 

INSURANCE    COMPANIES,    TEAM    AND    VEHICLE. 

Capital  stock  required.     Pol.  C.  §  504 26G 

Classification  of  team  and  vehicle  insurance.     Pol.  C.  §  594, 

subd.    13    266 

Insolvency,  condition  of,  what  constitutes.     Pol.  C.  §602...   277 

INSURANCE  COMPANIES,  TITLE. 

Capital  stock  required.     Pol.  C.   §  594 266 

Classification  of  title  insurance.     Pol.  C.  §  594,  subd.  4 266 

Dividends,    made    only    after    certain    reservations.      C.    C. 

§  432 101 

Insolvency,  what  constitutes.     Pol.  C.  §  602 277 

Investment  of  capital.     C.  C.  §  421,  subd.  5 97 

Surplus  fund  required.     C.  C.   S  432 101 

INTEREST. 
Rate   of,    not   to   be   regulated   by  legislature.      Const.,    art. 

IV.    §  25.    subd.    23 4 

INVESTMENT   COMPANIES. 

Application  of  laws  concerning.     Pol.  C.  §6351 307 

Articles    of    incorporation,    and    accompanying    statement. 

Pol.  C.  S  635c 303 

Bankruptcy,    action    by   attorney   general    to   declare.      Pol. 

C.  §  635i  306 

Business  not  to  be  commenced  before  making  deposit.     Pol. 

C.   §  635k   307 

when   not   licensed   by    certain   authorities,    securities    to 

be  deposited  with  state  treasurer.     Pol.  C.  §  635b 302 

Cash  or  securities  deposited  with  treasurer  of  state.     Pol. 

C.   5  635b    302 

Definition  of  investment  company.     Pol.  C.  §  635a 302 

Deposit  with  treasurer  of  state,   requirements  for.     Pol.  C. 

§  635b    .302 

withdrawal    of,    upon    ceasing    to    do    business.      Pol.    C. 

§  635e 304 

Examination  by  attorney  general.     Pol.  C.  §  6351 306 

License  to  do  business,  when  not  issued  by  certain  author- 
ities,  securities  to   be  deposited   with   state   treasurer. 

Pol.  C.  S  635b 302 

Loans  out  of  reserve  fund,  limit.     Pol.  C.  §  635g 305 

Penalties  for  violation  of  law.    Pol.  C.  §  635j 307 

Reserve  fund,  creation  of.     Pol.  C.  §  635h 306 

limitation  of  loans  from.     Pol.  C.  §  635g 305 

Securities  to  be  deposited  with  treasurer  of  state  in   cer- 
tain cases.     Pol.   C.   §  635b 302 

substituted  for  cash  deposit.     Pol.  C.  §  635f 305 

Statement    accompanying   articles    of    incorporation.      Pol. 

C.    S  635c    303 

Violation  of  law,  penalty.     Pol.  C.  §  635j 307 

Withdrawal,  from  state.     Pol.  C.  §  635e 304 


834  GENERAL  INDEX. 

LABOR     ORGANIZATIONS.   See,     also.     Appendix     Index, 

COMBINATIONS.  Page. 

Agreement  not  to  join,  foixed,  as  condition  of  employment, 

penalty.     Pen.  C.  S  679 ' 433 

Trade-mark,  adopted  by,  protection  of.     Pol.  C.  §3201 342 

adoption  and  use  of.     Pol.  C.  §  3200 ;   342 

LAND.      See,   also,   PROPERTY. 

Assessment  of,  in  parcels.     Pol.  C.  §  3628 3.^>1 

separate  from  improvements.     Pol.  C.  §  3627 350 

statement  required  by  assessor.     Pol.  C.  §  3629 353 

Defined   as   real   estate,   for  purposes  of  taxation.     Pol.   C. 

S  3617    348 

Large  holdings  discouraged.     Const.,  art.  XVII,  §2 26 

Tide,   not   to   be   granted   or   sold   to   corporations.      Const., 

art.  XV,  §  3   25 

LAWS. 
Corporation,  application  of  general  provisions  affecting  all 

corporations.     C.   C.   §  403 90 

legislative  right  to  amend  or  repeal  or  dissolve  corpora- 
tions created  thereunder.     C.  C.  §  404 90 

legislature  to  pass,  relating  to.     Const.,  art.  XII,  §  24 19 

Existing,  repealed,  on  adoption  of  code.     C.  C.  §  288 32 

General    nature,    to    have    uniform    operation.      Const.,    art. 

I.  S  11    1 

General   only  to  be  passed,   when  can   l>e  made  applical)le. 

Const,  art.  IV,  S  25,  subd.  33 4 

Legislation,      special,      forbidden,      in     enumerated     cases. 

Const.,    art.    IV,    S  25 4 

LICENSE    TAX.      See    Appendix    Index,    FEDERAL    CORPO- 
RATION   TAX    LAW;    LICENSE   TAX. 

LIGHTING   CORPORATIONS. 

Cities  may  allow  use  of  streets.    Const.,  art.  X,  §  19 8 

Contracts,   cities  of  fifth  and  sixth  classes.     See  Appendix 

Index,    Municipal   Corporations. 
Franchises.      See,    also.    Appendix    Index.    Franchises;    Mu- 
nicipal  Corporations. 
Gas   companies,   advance   i)ayni('nt    for  serxicc  pipe.      C    (". 

S  63(1 197 

charges  by,   wlien   regulated   by   legishituie.     Const.,   art. 

IV,    S  33    6 

contracts  with  cities  for  supply  of  gas.     Pol.  C.  §  4412....   376 
contracts    witli    cities,    reservations    and    restrictions    by 

common  council.     Pol.   C.   §  4413 376 

duty  to  furnish  gas.     C.  C.  §  629 196 

franchises,    granting    of,    by    common    council    of    cities. 

Pol.  C.  §  4410 375 

franchises,  reservation  by  cities.     Pol.  C.  §  4411 375 

right  to  inspect  meters.     C.  C.  |i  631 198 

right  to  shut  off  supply  from  consumer.     C.  C.  §  632 19S 

use   of  streets   by,    for   pipes   and   conduits.     Const.,    art. 
X,    §19   8 


GENERAL  INDEX.  835 

LIGHTING    CORPORATIONS— Continued.  Page. 

Electric  light  companies,  advance  payment  for  construction 

of  line.     C.  C.  §  630a 197 

duty  to  furnisli  electricity.     C.  C.  §  029 19fi 

riglit  to  inspect  meters.     C.  C.  §  631 19*^ 

right  to  sluit  off  supply  from  consumer.     O.  C.  §  632 198 

LOTTERIES. 

Prohibited.     Const.,   art.   IV,    §26 5 

MARRIED  WOMEN. 

Deposits  ill  savings  and  loan  .societies  and  drawing  of  divi- 
dends.    (".  C.   S  'iT5 "•' 

Sec,  also.  Appendix  Index.   Banks  and  Banking. 

Dividends  on  stock,  payment  to.    C.  C.  i  325 i)S 

Giving  of  proxies  by.     C.  C.  §  325 •'^'^ 

Homestead  corporations,  shares  held  in.     C.  C.  §  561 160 

Transfer  of  sliares  of  capital  stock.     C.  C.  §  325 5S 

MECHANICS. 

Provision  for  scaffolding,  ladders,  etc.     Pen.  C.  §  402c 41S 

MECHANICS'     INSTITUTES.       See     COMMERCE,     TRADE, 
AND    MECHANIC    ARTS. 

MEETINGS.      See,   also,    ELECTIONS;    MEMBERS;    STOCK- 
HOLDERS. 

Adjournment  of.     C.  C.  §  312 ^•' 

Assembled    by    consent    of    members    or    stockholders    are 

valid.     C.  C.   §  318 52 

Assented  to  bv  members  or  stockholders  are  valid.     C.   C. 

§317 ■ 52 

Attendance,  amount  necessary,  before  business  can  be  con- 
ducted.    C.  C.   S  312 i'^ 

By-\a\NS  may  provide  for  manner  of  calling  and  conduct- 
ing.    C.  C.  §  303 43 

meeting  to  adopt.     C.  C.  §  301 42 

Elections,  how  stock  must  be  represented.     C.  C.  §312 49 

Held  at  principal  place  of  business.     C.  C.  §  319 52 

Justice   of   the   peace   may   order   in   certain   contingencies. 

C.   C.    §  311 , -*•' 

Members  or  stockholders,  who  entitled  to  vote,  and  use  of 

proxies.     C.  C.  §  321b 51 

Notice  of,  by-laws  may  provide  for  manner  of  giving.     C  O. 

§  303,  subd.  1 -l-i 

by-laws  may  provide  for  publication.     C.  C.  §  303,  subd.  8.      43 

for  adoption  of  by-laws,  how  given.     C.  C.  §  301 42 

for  election  of  directors,  how  given.     C.  C.   §§301,302....      42 

waivure  of  notice  of  election.     C.  C.  §  302 42 

when  waived,  proceedings  are  validated,  however  called. 

r.   C.   §  317 5- 

Proxies,  use  of,  at  meetings.     C.  C.  §  321b 54 

See,  also.  General  Index,  Proxies. 
Publication   of   notice  of,   by-laws  may  provide   for.     C.   C. 

§  303,    subd.    8 43 

Quorum.     See  General  Index,  Quorum. 


836  QENBBAt  INDEX. 

MEETINGS— Continued.                                                                      Page. 
Representation   at,   amount  necessary  for  f:onduet  of  busi- 
ness.    C.   C.   §  312 49 

Special,  how  called.     C.  C.  §  320 5i' 

Stock,  how  represented  at  general  meetings.    C.  C.  §  312...     49 
iiow  represented  when  portion  of  stock  is  owned  by  cor- 
poration.    C.  C.   §  344 '. 67 

owned  by  minors,   insane  or  deceased  persons,  how  rep- 
resented.    C.  C.   §  313 50 

Stockholders  or  members,  who  entitled  to  vote,  and  use  of 

proxies.     C.  C.   §  321V)   54 

MEMBERS.     See,  also,   ELECTIONS;   MEETINGS. 
Action   on   amendment  of  articles  of   incorporation.     C.   C. 

«  362 78 

on    extension    of    corporate    existence    for    remainder    of 

fifty-year  term.     C.  C.  §  401 88 

on  renewal  of  corporate  existence  for  fifty  years.    Const., 

art.    XII,    §  7 12 

Admitted  to  corporation.     C.  C.  §354,  subd.  7 70 

By-  laws,  assent  of  to  adoption  of.     C.  C.  §  301 42 

may  amend  or  repeal.     C.  C.  §  304 43 

Consent  of,  for  continuance  of  existence  under  code.     C.  C. 

§287    32 

Definition   of.     C.  C.    §  298 38 

Directors  elected  by.     C.  C.  §  302 42 

may  be  removed  fi'om  office  by.     C.  C.  §  310 48 

Liability  of.     C.  C.   §  322 55 

Meeting    of,    justice    of    the    peace    may   order    new,    when. 

C.  C.  §  311 49 

use  of  proxies.     C.  C.  ^  321b 54 

waiver    of    notice    of,    validates    proceedings,     however 

called.     C.  C.  §  317 52 

who  entitled  to  vote.    C.  C.  §  321b 54 

Quorum,  number  necessary  to  constitute.     C.  C.  §312 49 

provided  for,  may  be,  in  by-laws.     C.  C.  §303,  subd.  2...  43 

MESSAGES.     See,  also,   CARRIERS. 

Minors   not   to   be   employed    to    deliver,    to    certain    places. 

Pen.  C.  §  273e 408 

Persons  or  corporations  sending  messages  by,   to   immoral 

places,  penalty.     Pen.  C.  §  273f 409 

MILL   SITES.     See   MINING   CLAIMS. 

MINING    CLAIMS,    TUNNEL    RIGHTS,    MILL    SITES.    See, 
also,    MINING    COMPANIES. 

Co-owners,  delinquent,  notice  to.     C.  C.   §  1426o 242 

Existing  districts,  not  affected.     C.  C.  §  1426r 244 

Lode  claims,  boundaries.     C.   C.   §  1426a 238 

how  located.    C.  C.  §  1426 237 

record  of  location.     C.  C.   §  1426b 238 

Mill  site,  location  of.     C.  C.  §  1426J 241 

record  of  location.     C.  C.  §  1426k 241 

Mining  districts,  existing,  not  affected.    C.  C.  J  1426r 244 


GENERAL  INDEX.  837 

MINING  CLAIMS,   ETC.— Continued.  Page. 

Notice  of  location,  amendment  of.     C.  C.  §  1426h 240 

lode  claim.     C.  C.   §  1426 237 

mill  site.     C.  C.  §  1426j 241 

placer  claim.     C.  C.  §  1426c 238 

tunnel  right.     C.  C.  §  1426e 239 

Placer  claim,  location  of.     C.  C.  §  1426c 238 

record  of  location.     C.  C.   §  1426d 239 

Records,  are  evidence.     C.  C.  §  1426p 243 

copies  of,  as  evidence.     C.  C.  §  1426q 243 

Survey  of  claims.     C.  C.  §  1426i 240 

Tunnel  right,  boundaries.     C.  C.  §  1426f 239 

location  of.     C.  C.  §  1426e 239 

record  of  location.     C.  C.  §  1426g 240 

Work,  annual,  required.     C.  C.  §  14261 241 

failure    to    perform,    disqualifies    for    relocation.      C.    C. 

§  1426s    244 

fee  for  recording.     O.  C.  §  1426n 242 

record  of.    C.  C.  §  1426ni 241 

MINING  COMPANIES.  See,  also,  FOREIGN  CORPORA- 
TIONS; MINING  CLAIMS;  also,  Appendix  Index, 
HOURS  OF   LABOR;   MINES  AND  MINING. 

Agencies  in  other  states  for  transfer  of  stock.     C.  C.  §  586.  169 

Books  and  balance  sheets,  open  for  inspection.     C.  C.  §  588.  171 

Consolidation  of.     C.  C.  §  587a 170 

Defined   as   real   estate,   for  purposes  of  taxation.     Pol.   C. 

§  3617,  subd.  2 34S 

Directors,  accounts  and  duties.    C.  C.  §  588 171 

liabilities.     C.   C.   §  590 173 

Fish,  screens  for  protection  of.     Pen.  C.  §  629 429 

Fish  ways,  must  be  provided.     Pen.  C.   §  637 430 

President,  duty  and  liability.     C.  C.   §  590 173 

Secretary,  accounts  and  duties.     C.  C.  §  588 171 

Statement  of  operations  monthly.     C.  C  §  588 171 

Stock,  agencies  for  transfer  of.     C.  C.  §  586 169 

issued  at  transfer  agencies,  requirements.    C.  C.  §  587. . . .  170 
Stockholder  may  examine  mine  with  expert.     C.  C.  §  589..  172 
right   to   recover  damages   for   refusal   to   permit   inspec- 
tion of  mine.     C.  C.  §  590 173 

Superintendent,  accounts  and  report.     C.  C.  §  588 171 

MONEY. 

Lawful,  only,  to  be  circulated.     Const.,  art.  XII,  §  5 12 

Not  created  or  issued.     C.  C.  §  356 71 

Public,  may  be  deposited  in  banks.     Const.,  art.  XI,  §  16i^. .  7 
Rate   of   Interest   on,    not   to   be   regulated   by   legislature. 

Const.,  art.  IV,  §  25,  subd.  23 4 

Unlawful  substitutes  for.     Pen.  C.  §  648 432 

MORTGAGES. 
Classified  with  real  estate,   for  purposes  of  taxation.     Pol. 

C.  S  3617,  subd.  2 348 

How  assessed.     Pol.  C.  S  3627 350 

Taxation  of.     Const.,  art.  XIII,  {4 21 

See,  also,  Property;  Taxation. 


838  GENERAL  INDEX. 

MUNICIPAL   FUNCTIONS.  Page. 

Delegation  of  to  corporatimis.  prohibitetl.     Const.,   art.  XI, 

§  1^!    7 

NAME. 

Articles  of  incorporation  must  set  forth.     C  C.  §  290 31! 

Application    for    change    of,    by    corporation,    certificate    of 

secretary  of  state  to  accompany.     C.  C.  P.  §  1278 402 

hearing.     C.  C.  P.  §  1278 402 

where  made.     C.  C.  P.   §  1275 401 

Change  of,  copy  of  decree  to  be  filed,  where.     C.  C.  §  300a.  41 

filed  with  secretary  of  state.     C.  C.  P.  S  1270 40:i 

how  effected.     C.   C.  P.   §  1276 401 

not   to   be   made   by   amending   articles   of   incorporation. 

c.  c.  §  ;^,t;2 ! ts 

Corporate  succession  by,  right  of.     C.  C.  §  354,  subd.  1 70 

Decree   of   court   changing,    to    be    Hied    with    secretary    of 

state.    C.  C.  P.  §  1279 40:'. 

of  court  changing,  to  be  filed  with  secretary  of  state  and 

county  clerks.     C.   C.    S  300a 41 

Fee  for  filing  copy  of  decree  of  change.     Pol.  C.  §  416,  subd. 

25    261 

Misnomer  does  not  invalidate  instrument.     C.  C.  §  357 72 

New  one  applied  for,   must  not  resemble  name  of  another 

existing  corporation.     C.  C.  P.  §  1278 402 

Not  to   resemble  another  so   closely  as   to   deceive.     C.    C. 

§  296 37 

Order  for  change  of,  made  by  court.     C.  C.  P.  S  1278 402 

form   for.     See  Appendix  Index,    Forms   and    Precedents. 
Petition    for   change    of,    order    to    show    cause.      C.    C.    P. 

§  1277    402 

Resembling  any  existing  corporation  not  to  be  taken.    C.  C. 

§  296 37 

"Trust"   or   "trustee"   in  corporate  name   forbidden   unless 

authorized.     C.  C.  §  290y2 35 

NATIONAL   GUARD. 

Discrimination    against    members    of.    forbidden.      Pen.    C. 

S421    419 

NON-PROFIT    CORPORATIONS. 

Admission  fees  and  dues.     C.  C.  §599,  sul)d.  2 ISO 

Any  number  of  persons  may  incorporate.     C.  C.  8  593 177 

Articles   of    incorporation,    must   contain   what,    in    case   of 

consolidation.     C.   C.    §  605 185 

must  contain  what  facts.     C.  C.   §  594 178 

wiiat  may  provide  for.    C.  C.  §  599 ISO 

Bonds  of,  may  be  issued.     C.  C.  §  598 179 

Burial  grounds  may  be  held.     C.  C.  S  595 178 

plots  may  be  disposed  of.     C.  C.  §  598 179 

By-laws,  wliat  may  provide  for.     C.  C.  §  599 180 

Cemetery   purposes,    land   which   may   be   held   for.      C.    C. 

§595    178 

Consolidation  of  like  corporations.    C.  C.  §  605 185 

Directors,  election  and  number  of.    C.  C.  §  593 177 


GENERAL  INDEX.  839 

NON-PROFIT    CORPORATIONS— Continued.                             Page. 
Directors,  increase  or  decrease  of.     C.  C.  §  599,  subd.  .5 180 

must  be  members  of  corporation.     C.  C.  §  305 44 

must  make  annual  report.     C  C.  §  597 179 

organization  of.     C.  C.  §  599,  subd.  5 180 

Elections,  how  conducted.     C.  C.  §  599,  subd.  3 180 

Fees  for  filing  articles.     Pol.  C.   M16,  subd.  4 261 

Indebtedness,  contracting  and  securing.    C.  C.  §  599,  subd.  6.   180 
Members,  admitted  after  incorporation.     C.  C.  §600 181 

expulsion  or  suspension.     C  C.  §  599,  subd.  4 180 

Membership,  qualification  for.     C.  C.  §599,  subd.  1 180 

riglits  or  privileges  of,  not  transferable.     C.  C.  §  601 181 

Property,  mortgage  or  sale  of.     C.  C.  §  598 179 

nature  of  which  may  be  acquired.    C.  C  §  595 178 

Quorum,  by-laws  may  provide  what  shall  constitute.     C.  C. 

§  312 49 

what  shall  constitute.     C.  C.  §599,  subd.  3 180 

Real  estate,  amount  which  may  be  held.     C.  C.  §  595 178 

NON-PROFIT      CORPORATIONS,      CO-OPERATIVE.        See 
CO-OPERATIVE. 

OFFICERS.     See,  also,  DIRECTORS. 

Directors,  elected  by  members  or  stockholders.     C.  C.  §  302.     42 
duties  and  qualifications  may  be  fixed  in  by-laws.     C.  C 

§  303,  subd.  4 43 

organization    of    must    be    immediately    accomplished    by 
election  of  a  president,  secretary,  and  treasurer.     C.  C. 

§  308 46 

Officers,   compensation  and  duties  may  be  provided  for  in 

by-laws.     C.   C.    §303,   subd.   5 43 

other  than  directoi's.  by-laws  may  provide  for  manner  of 

election  and  tenure  of  office.     C.  C.  §  303,  subd.  6 43 

Subordinate,  appointment  of.     C.  C.  §  354,  subd.  5 70 

ORGANIZATION.      See,   also,   ARTICLES   OF    INCORPORA- 
TION;   BY-LAWS;    DIRECTORS;    ELECTIONS. 
Corporate  oiganization   to  be   under  general   laws.      Const., 

art.    Xll,    §1 10 

Effected  within  one  year.     C.  C.  S  35S 72 

Fraudulent,  penalty.     Pen.  C.   §  558 423 

ORPHAN    ASYLUMS.   See,    also,    NON-PROFIT    CORPORA- 
TIONS;   RELIGIOUS   CORPORATIONS. 
Orphan  asylums  nia>    nwn  icitaiii  real  estate.     C  C   §  595..    178 

PACK    TRAILS.      See    ROADS,    TOLL. 

PAWNBROKERS. 

Failure  to  keep  certain  register,  penalty.     Pen.  C.  §339 410 

Gold    bullion   and  quartz  purchased,   record  of  to  be  kept. 

Pen.    C.    §339 410 

Refusal    to    allow    inspection    bv   officer,    penaltv.      Pen.    C. 

§  :!13 411 

PERSONAL  PROPERTY.   See  PROPERTY. 


840  QENIRAL  INDEX. 

PIONEER  SOCIETIES.  Page. 

May  hold  certain  real  estate.     C.  C.  §  596 179 

See.   also,   Non-Profit  Corporations;  Co-operative    Busi- 
ness  Associations. 

PLACE  OF  BUSINESS.     See  BUSINESS. 

POLITICAL   ASSOCIATIONS. 

Incorporation  as  co-operative  business  associations.     C.  C. 

§  6531J    214 

See,   also,    Non-Profit   Corporations. 

POLL  TAX.    ROAD. 

Liability  of  employer.     Pol.   C.    S  2671 810 

POWERS.      See,   also,    DIRECTORS. 

Cease    wiien    business    i.s    not    commenced    within    limited 

period.     C.  C.  §  358 72 

Controlled   and    exercised    bv   directors   or   trustees.     C.    C. 

§  305 44 

Enumerated,  as  to  what  a  corporation  may  exercise.    C.  C. 

§  354 70 

Limitation  of.     C.  C.  §  355 71 

Retained   after  sale  of  franchise   under  execution.     C.    C. 

§  391  8« 

Right  to  exercise,  attorney  general  may  inquire  into.     C.  C. 

§  35S    72 

PRIVATE   CORPORATIONS. 

Definition  of.  C.  C.  §  284 31 

Purposes  for  which  may  be  formed.     C.  C.  §  286 31 

PRIVATE   PROPERTY.     See   PROPERTY. 

PRIVILEGES. 

Exclusive  forbidden.     Const.,  art.  IV,  §25,  subd.  19 4 

Special,  limitations.     Const.,  art.  I,   §  21 2 

PROPERTY.  See,  also,  PROPERTY,  PERSONAL;  PROP- 
ERTY, PRIVATE;  PROPERTY,  REAL;  TAXATION. 

Articles   of    incorporation    must    be    filed    in    county    where 

situated.      C.   C.    §299 38 

Assessed  in  county  where  situated.     Pol.  C.  §  3641 355 

wliere  and  by  whom.     Const.,  art.  XIII,  §  10 23 

Assessment  of,  at  cash  value.     Pol.  C.  §  3627 350 

blank  forms  of  statement.     Pol.  C.  §  3630 354 

Definition  of,  by  constitution.     Const.,  art.  XIII,  §  1 19 

C.  C.  §  14 28 

C.  C.  P.   §  17   378 

Pen.  C.  §  7   405 

Pol.  C.  §  17 259 

Pol.  C.  §  3617 348 

Fraudulent  appropriation  of,  by  officer  of  corporation.     Pen. 

C.    §504    420 

handling  of.    Pen.  C.  §  506 421 

In  foreign  country,  sale  of.     C.  C.  §  364 80 

Ownership  defined.     C.  C.  §  654 231 


GENERAL   INDEX.  S41 

PROPERTY— Continued.  Paoe. 

Ownership,  in  wliat  may  exist.     C.  C.  §  65.5 231 

Sale  of,  under  execution.     C.  C.  P.  §  6SS 391 

Situated  in  foreign  country,  sale  of.     C.  C.  §364 80 

Statement  required  by  assessor.     Pol.   C.   §3629 353 

Subject   to  taxation.      Pol.   C.    §3607 34.5 

Taxation  of.     Const.,  art.  XIII,   §  1 I'.t 

PROPERTY,    PERSONAL.      See,    also,  .PROPERTY. 

Attachment  of,  how  effected.     C.  C.  P.  §  542 38S 

Defined.     C.  C.  §  14 28 

C.  C.  P.  §  17 378 

Pen.    C.    §  7    405 

Pol.  C.  §  17 259 

for  purpose  of  taxation.  Pol.  C.  §  3617,  subd.  4 348 

Sale  of,  under  execution.     C.  C.  P.  §  688 '.  391 

Trade- marks.     C.  C.  §  991 232 

.See.  also.  General  Index,  Trade-marks. 

PROPERTY.   PRIVATE.     See,  also,   PROPERTY. 

Can    not    be   taken    without    compensation.      Const.,    art.    I, 

§  14 2 

Rights  of.     Const.,  art.  I,  §  14 2 

PROPERTY,  REAL.  See,  also,  PROPERTY. 

Coextensive  with  what.     C.  C.  §  14 28 

Defined.     C.  C.  P.  §  17 378 

Pen.    C.    §  7    405 

Pol.  C.  §  17  259 

Holding  of.     Const.,  art.  XII,   §  9 13 

How    much    may    be    acquired    and    held    by    corporations. 

C.  C.   §  360   76 

Power  of  corporations   to   purchase  and  liold.      C.   C.    §  354, 

subd.  4   70 

Real  estate  defined.     Pol.  C.  §  3617 348 

Sale  of,   under  execution.     C.  C.  P.   §  688 391 

PROXIES. 

At  elections.     C.  C-  S  312 4!l 

At  meeting  of  members  or  stockholders.     C.  C.   §  321b 54 

By-laws  may  provide  manner  of  voting.    C.  C.  §  303,  subd.  3.  43 

Married  women  may  give  valid.     C.  C.  §  325 58 

PUBLIC   CORPORATIONS. 

Defined.     C.   C.   §  284 31 

PURPOSES. 

Articles  of  incorporation  must  set  forth.     C.  C.  §  290 33 

PUBLIC   CREDIT.     See,   CREDIT,   PUBLIC. 

QUARRIES. 

Defined  as  real  estate  for  taxation  puiposes.     Pol.  C.  §  3617, 

subd.  2  348 

See,   also,    Mining   Companies;   Property. 

36— CL 


''^42  OENERAL   INDEX. 

QUORUM.  Page. 

Board  of  directors,  majority  constitutes.     C.  C.  §308 46 

By-laws  may  provide  for.     C.  C.  §  303,  subd.  2 43 

Elections  or  votes,  majority  of  members  or  of  capital  stock 

represented.     C.  C.  §  312 49 

when  portion  of  stock  owned  by  corporation.     C.  C.  §  344.  67 
See,  also,   Directors;  Meetings;  Members;  Stockholders. 

RAILROAD     COMMISSIONERS.       See,     also,     Appendix     In- 
dex,   RAILROADS. 
Changes    in    rates,    schedule   of,    must   be   sei-ved    on    com- 
panies affected.     C.  C.  §  489 137 

Election  of,  by  districts.     Const.,  art.  17,  §  22 17 

Powers  of.     Const.,  art.  XII,  §  22 17 

RAILROAD  DISTRICTS. 

Apportionment  of  state  into.     Const.,  art.  XII,   §22 17 

Counties    contained    in    first    apportionment.      Const.,    art. 

XII,  §  23 19 

RAILROADS.     See,  also,  CARRIERS;  RAILROAD  COMMIS- 
SIONERS;  also,   Appendix   Index,    RAILROADS. 

Animals,  care  of,  during  transportation.     Pen.   C.  §369b...   416 

Annual  report  by  corporation.     C.  C.   §480 133 

Application    of   provisions   for   co-operative   business    asso- 
ciations.    C.  C.  §  6531 219 

of    provisions    for    non-profit    co-operative    corporations. 

C.  C.   §  653za  230 

Are  common  carriers.     Const.,  art.  XII,  §  17 15 

Articles    of    incorporation    must   make    certain    statements. 

C.  C.  §  291  36 

when  consolidation  made  witli  other  roads.     C.  C.  §473..   129 
Assessment    of    property    for    purpose    of    taxation,    where 

made.     Const.,  art.  XIII,  §  10 23 

Accommodations  for  passengers  must  be  furnished.     C.  C. 

§  481 133 

sufficient  room  to  be  furnished.     C.   C.   §483 134 

Badges  must  be  worn  by  employees.     C.  C.  §  488 136 

Baggage,  checking  of.     C.  C.  §  479 132 

Bell  to  be  rung  at  certain  places.     C.  C.  §  486 136 

Bonds  may  be  issued  to  borrow  money.     C.  C.  §  456 121 

sinking  fund  to  redeem  must  be  provided.    C.  C.  §  457....   121 

Borrowing    money.     C.   C.   §456 121 

Brakes    and    fenders    required    on    certain    cars.      Pen.    C. 

§  369a    415 

Business  must  be  reported  on  annually.     C.  C.   §480 133 

Capital   stock,  amount  necessary  to  be  ascertained.     C.   C. 

§  458 122 

assessments  on.     C.  C.  §  332 63 

fixed,  when  paid  in,  certificate  to  that  effect.     C.  C.  §  459.   122 

must  be  reported  on  annually.     C.  C.  §  480 133 

not  transferable  under  certain  conditions.     C.  C.  §  455....   120 
percentage   which   must   be    paia   on   subscribed.     C.    C. 

§294    36 

requirements  for  subscription  to.     C.  C.  §  293 36 

Certificate  of  incorporation,  requirements  for.     C.  C.  §  295..     37 


GENERAL  INDEX.  848 

RAILROADS— Continued.  Page. 

Check  to  be  affixed  to  baggage.     C.  C.  §  479 132 

Combinations  with  other  carriers  prohibited.     Const.,   art. 

XII,   §  20    16 

Consolidation  with  other  corporations,  how  effected.     C.  C. 

§  473    129 

Construction   commenced  within  certain  limit  of  time  and 

continued.     C.  C.  §  468 126 

lands  and  materials   for  construction   of   road,   power   to 

purchase  or  condemn.     C.  C.  §  465,  subd.  7 123 

machinery  and  buildings  to  be   erected  and  maintained. 

C.  C.   §  465,   subd.   9 123 

power  of  corporation  to  undertake.     C.  C.  §  465,  subd.  4..   123 

rails,  quality  and  pattern  of.     C.  C.  §  491 138 

surveys,  right  of  way  to  make.    C.  C.  §  465,  subd.  1 123 

Contracts  allowed  with  other  roads  for  use  of  tracks.     C.  C. 

§  473a 130 

Crossings  and  intersections,  adjustment  of.     C.  C.  §  469....   127 

condemnation  for  right  of  way.     C.  C.  §  469 127 

crossings,  acquirement  of  additional  lands  and  material. 

C.  C.   §  472    128 

crossings  at  public   highways,   duty  of  company  to   pre- 
pare.    Pol.  C.   §  2694 311 

crossings,   road   may  to  be  carried   under,   over,   or  on   a 

level.     C.  C.  §  472 128 

cross    or    intersect    highways,    streams,    etc.,    power    to. 

C.   C.   §465,   subd.  5 123 

cross  or  intersect  with  other  railroads,  power  to.     C.  C. 

§  465,  subd.  6 123 

Directors,  elected  when.    C.  C.  §  454 120 

Discrimination  by,  forbidden.     Const.,  art.  XII,  §21 17 

Dividends  must  be  reported  upon  annually.     C.  C.  §  480....   133 

Elevated  roads.     C.  C.  §  492 138 

Fences  must  be  maintained.     C.  C.  §  485 135 

Foreign  companies  have  same  rights  as  domestic  corpora- 
tions.    C.   C.    §  407 92 

may  lease  or  use  road  in  common.     C.  C.  §  473a 130 

Franchises,  assessment  of,    how  and  when   made.     Pol.   C. 

§  3665 357 

assessment    of,    power    of    state    board    of    equalization. 

Pol.   C.   §  3692,   subd.   5 365 

assessment  of,  where  and  by  whom.     Pol.  C.  §  3628 351 

elevated  or  underground  roads.     C.  C.  §  492 138 

elevated  or  underground  roads,  application  of  provisions 

for.     C.  C.  §  493 139 

lease  of  whole  or  part  of  other  roads.     C.  C.  §  473a 130 

of  other  roads,  acquirement  of.     C.  C.  §465,  subd.  12 123 

sale  of  to  other  roads.    C.  C.  §  494 139 

Freight,  property  as,  received  by,  may  be  held  for  charges. 

Pol.  C.  §  3152 338 

property  as,  sold  for  charges,  disposition  of  surplus  pro- 
ceeds.   Pol.  C.  §  3154 339 

property  as,   unclaimed,   may  be  sold  for  charges.     Pol. 

C.  §  3153 338 

rates  for.    See  Rates. 


844  GENERAL  INDEX. 

RAILROADS— Continued.  Page. 

Freight  train,  liability  to  passengers  riding  on.  C.  C.  §  483..   134 

printed  regulations,  application  of.    C.  C.  §  484 135 

Indebtedness,  must  be  reported  on  annually.     C.  C.  §  480...   133 

unlavv'ful  contracting  of,  penalty.     Pen.  C.  §566 426 

unlawfully  contracted,   valid   as  against   company.      Pen. 

C.  §  567 427 

Liabilities  and   penalties,  damages  on  refusal  to  transport. 

C.   C.   §482 134 

during    transportation    of    persons    on    baggage    or    work 

cars.     C.   C.   §  483 134 

for  injuring  animals,   in  case  fences  are  not  maintained. 

C.   C.   §485    135 

in  case  bell  is  not  rung  or  whistle  sounded.     C.  C.  §  486. .   136 

in  case  of  failure  to  post  rules.     C.  C.  §  484 135 

on  refusal  to  furnish  tickets.     C.  C.  §  490 138 

when  increasing  rates  of  purchased  roads.     C.  C.  §  494.  . . .    139 

Line  of  road  may  be  changed.     C.  C.  §  467 126 

must  not  lie  changed  to  avoid  places  named  in   articles 

of  incorporation.     C.  C.  §  467 126 

Maps  and  profiles  to  be  filed.     C.  C.  §  466 126 

Mortgages  may  be  given  to  borrow  money.     C.  C.  §  456....    121 

taxation  of,  in  case  of.     Const.,  art.  XIII,  §4 21 

Motive  power,  what  may  be  used.    C.  C.  §  465a 125 

Operation,  definition  of.     C.  C.  §  468 126 

must  be  established  and  maintained.     C.  C.  §  468 126 

of  road,  when  above  elevation  of  5,000  feet.  C.  C.  §  468..  126 
Overcharge  by  officer  or  employee,  penalty.  Pen.  C.  §  525. .  421 
Passes  not  to  be  issued  to  public  officers.     Const.,  art.  XII, 

§  19 16 

Powers,  enumerated.     C.  C.  §  465 123 

Property,    apportionment    of   assessment    of,    record.      Pol. 

C.  §  3666 359 

assessment  of,   by  state  board  of  equalization,   annually. 

Pol.  C.  §  3665 357 

assessment  of,  by  state  board  of  equalization,  statement 

to  be  furnished  by  corporation.     Pol.  C.  §  3664 356 

assessment  of,  powers  of  state  board  of  equalization  with 

reference  to.     Pol.  C.  §  3692 365 

assessment  of,  where  and  by  whom.     Pol.  C.  §  3628 351 

real,   by  grants  and  donations,   right  of  to  receive,   hold, 

or  convey.     C.  C.  §  465,  subd.  2 123 

real,  right  to  acquire  and  hold.     C.  C.  §  465,  subd.  3 123 

rolling  stock,  rails,  etc.,  assessment  of.     Pol.  C.  §  3665 357 

sale  of  property  to  other  roads.     C.  C.  §  494 139 

statement    of,    to    state    board    of    equalization.      Pol.    C. 

§  3664 356 

Public    lands,    abandoned   by   corporation,    revert    to    state. 

C.  C.  §  477    131 

right  of  way  not  to  apply  to  land  within   municipalities. 

C.   C.   §  475    131 

right  of  way  over.    C.  C.  §  474 131 

wood,  stone  and  earth  may  be  taken  from.  C.  C.  §  476..  131 
Rails,  designated,  quality.     C.  C.  §  491 138 


GENERAL  INDEX.  845 

RAILROADS — Continued.  Page. 

Rates,  any  increase  of  on  purchased  road  not  to  be  made 

without  governmental  authority.     C.  C.  §  494 139 

fare  can  not  to  collected  unless  badge  is  shown.     C.   C. 

§  488 1.30 

overcharge  by  officer  or  employee.     Pen.  C.  §  525 421 

power  of  corporation  to  make.     C.  C.  §  465,  subd.  10 123 

refusal  of  passenger  to  pay  fare.     C.  C.  §  487 136 

tolls    and     compensation,     regulation    of.       C.     C.     §  465, 

subd.    10    123 

when  changed,  must  be  posted.     C.  C.  §  489 137 

special    for    commutation    or    excursion    tickets.      Const., 

art.   XII,    §21    17 

when  lowered  in  competition,  not  to  be  increased.    Const., 

art.  XII,  §  20 16 

when  lowered  in  competition,  on  purchased  roads,  not  to 

be  raised  without  certain  permission.     C.  C.  §494 139 

when  regulated  by  railroad  commissioners,  must  be  served 

on   companies.      C.   C.    §  489 137 

Report  by  corporation  to  be  made  annually.     C.  C.  §  480. . . .   133 
Rights    of    connection,    crossing,    or    intersection.      Const., 

art.  XII,   §  17  15 

joining  or  uniting  with  otiier  roads.     C.  C.  §  465,  subd.  6..   123 

Right  of  way  over  public  lands.     C.  C.  §  474 131 

over  public  lands  not  to  apply  to  municipalities.     C.   C. 

§  475    13J 

streets  and  highways  within  incorporated  cities  or  towns 
not    to   be    used   without    municipal    authority.      C.    C. 

§  470 128 

when  selected,  must  be  submitted  to  certain  authorities. 

C.  C.   §  478   132 

Rolling   stock,   power  of  assessment  of,   by  state   board  of 

equalization.      Pol.   C.    §  3692 365 

when  and  where  assessed.     Pol.  C.  §  3665 357 

Rules  and    regulations  must  be  posted  up   in   cars.     C.   C. 

§  484    135 

Speed  of  cars  and  locomotives,   power   to  regulate.     C.    C. 

§  465,  subd.  11 123 

Subject  to  legislative  control.     Const.,  art.  XII,  §17 15 

Taxes,  assessment  by  state  board  of  equalization,   paid  to 

state  treasurer.     Pol.  C.  §  3669 362 

recovery  of,  illegally  levied.     Pol.  C.  §  3669 362 

Tickets  must  be  furnished  on  tender  of  fare.     C.  C.  §  490..   138 
Time  tables,   notice  to   be   given  publicly  of   starting  and 

running  cars.     C.  C.  §  481 133 

to  be  regulated.    C.  C.  §  465,  subd.  10 123 

Transportation,   damages,   liability  for,   in   case  of  refusal. 

C.  C.  §  482 134 

of  persons  and  property.     C.  C.  §  481 133 

persons   and    property   to   be   carried,    and   tolls   received 

therefor.     C.  C.  §  465,  subd.  8 12.3 

tolls   and   compensation   for,    regulation   of.     C.    C.    |  465, 

subd.    10    123 

Underground  roads.     C.  C.  §  492 138 


846  GENERAL  INDEX. 

RAILROADS — Continued.  Page. 
Wharves  and  piers,  authority  to  construct.  Pol.  C.  §  2921..  336 
Whistle  to  be  sounded  at  certain  places.     C.   C.  §486 136 

RAILROADS,  STREET.     See,  also,  CARRIERS. 
Accommodations,  comfort  and  convenience  required.     C.  C. 

§  501 143 

Actions  against  company,  proof  of  agency  in  certain  cases. 

C.   C.   §506   145 

Application  of  laws  relative  to  railroads.     C.  C.  §  510 147 

of  title  to  natural  persons.    C.  C.  §  511 147 

Brakes.     C.  C.  §  501 143 

Brakes  and  fenders.     Pen.  C.  §  369a 415 

Cars,  license  tax  upon.     C.  C.  §  508 146 

Consolidation  with  other  corporations,  articles  of  incorpo- 
ration and  consolidation.     C.  C.  §  473 129 

with  other  corporations,  procedure.     C.  C.  §  473 129 

Construction,  conditions  required  by  local  authorities.     C.  C. 

§  498 142 

grading,  tracks  for.     C.  C.  §  509 146 

obstruction  of  streets,  limitation  upon.     C.  C.  §  500 143 

time  allowed  for.     C.  C.  §  502 144 

Contracts,   cities  of  the   fifth   and   sixtli   classes.     See   Ap- 
pendix Index,   IVIunicipa!   Corporations. 

Crossings  and  intersections,  other  tracks.     C  C.  §  500 143 

Fare,  rate  of.     C.  C.  §  501 143 

Franchises.     See,   also.    Appendix   Index,    Franchises;    Mu- 
nicipal Corporations. 

authority  to  lay  tracks,  how  obtained.     C.  C.  §  497 141 

cities  and  towns  may  make  certain  resei^vations.     C.   C. 

§  497 141 

forfeited  when  construction  not  completed  within  certain 

time.     C.  C.  §  502 144 

further  regulations  may  be  attached  when  granted.    C.  C. 

§  503 144 

Hours  of  labor  of  employees.     Pol.  C.  §  3246 343 

penalty  for  employing  persons  for  excessive  hours.     Pol. 

C.    S  3250    343 

Liabilities   and    penalties,    in   case   comfort   and   safety   not 

provided.     C.  C.   §  501 143 

in  case  of  overcharge.     C.  C.   §  504 145 

in  case  of  refusal  to  furnish  tickets.     C.  C.  §  505 145 

in   case   of  working  employees   over   twelve   hours.      Pol. 

C.  §  3250 343 

Lines   may   be   used  by   different   companies  under   certain 

conditions.    C.  C.  §  499 142 

IVlotive    power,    determined    Ijy    local    government.      C.    C. 

§  497    141 

on  tracks  for  grading  purposes.    C.  C.  §  509 146 

Rates,  not  to  exceed  certain  limits.     C.   C.   §501 143 

overcharge  not  allowed.     C.  C.  §  504 145 

Right  of  way,  along  streets.     C.  C.  §  497 141 

forfeited  when  construction  not  completed.    C.  C.  §  502. . .    144 
restrictions  upon.    C.  C.  §  498 142 


GENEBAL  INDEX.  847 

RAILROADS,  STREET— Continued.  Page. 

Streets  and  highways,  municipalities  reserve  certain  rigiits 

in  reference  to.    C.  C.  §  507 146 

repair  of.     C.  C.  §  507 146 

Streets    or    tracks    may    be    used    by    different    companies. 

C.  C.  §  499 142 

Tickets  must  be  furnislied  to  purchasers.     C.  C.  §  505 145 

Track,  authority  to  lay.     C.  C.  §  497 141 

laying,  limit  on  obstruction  of  streets.     C.  C.  §  500 143 

manner  of  construction,  specifications  for.    C.  C.  §  498....   142 

use  of  by  two  or  more  lines  of  road.     C.  C.  §  499 142 

when  crossing  other  tracks,  requirements.    C.  C.  §  500....   143 

REAL  ESTATE  AND  REAL  PROPERTY.     See  PROPERTY. 

RECEIVERS.      See,    also,    DISSOLUTION. 

Appointment  of,  in  event  of  dissolution.     C.  C.  P.  §  564 390 

by  court.     C.  C.  P.  §  565 : 391 

RECORDS.     See    BOOKS   AND   RECORDS. 

RELIGIOUS   CORPORATIONS.      See,   also,    BENEVOLENCE 
AND    CHARITY;    COLLEGES    AND    SEMINARIES    OF 
LEARNING;    NON-PROFIT    CORPORATIONS. 
Articles    of    Incorporation    may    include    church    discipline. 

C.   C.   §599,   subd.   7 ISO 

what  must  set  forth.     C.  C.  §  594 178 

Buildings,   used  for  religious  purposes  exclusively,   exempt 

from  taxation.     Pol.   C.   §  3611 347 

Business,  place  of,   need  not  be  maintained.     Const.,   art. 

XII,    §  14    14 

By-laws,  what  may  provide.     C.  C.  §  599 180 

Cemetery  purposes,  holding  of  land  for.     C.  C.  §  595 178 

holding  of  land   for,   when   incorporated   as  a   church   or 

society.     C.   C.    §  603 183 

land  held  for,   when  incorporated  as   a  corporation   sole. 

C.  C.   §  602   181 

land   held  for,    when   corporations   are   formed  by   repre- 
sentative body.     C.  C.  §  604 184 

Churches,  exempt  from  taxation.     Const.,  art.  XIII,  §1^...  20 

Churches  and  societies,  how  incorporated.     C.  C.  §  603 183 

Consolidation  of  like  corporations.     C.   C.   §605 185 

Corporation,   sole,  articles  of  incorporation   must  set   forth 

certain  facts.     C.  C.  §  602 181 

authorities  and  powers.     C.  C.  §  602 181 

continuance  of  existence  under  §  287,   Civil  Code.     C.   C. 

§  602 181 

continuous  existence  of.     C.  C.   §  602a 183 

property  held  by.    C.  C.  §  602 181 

Directors,  election  of.     C.  C.  §  603 183 

election  of,  certain  conditions  not  to  apply.     C.  C.  §  307..  45 

Exempt  from  certain  limitations  as  to  land.    C.  C.  §  595....  178 

Name,  change  of,  how  effected.     C.  C.  P.  §  1276 401 

Property  held  by.    C.  C.  §  603 183 

restrictions  which  do  not  apply.     C.  C.   §595 178 


848  GENERAL   INDEX. 

RELIGIOUS  CORPORATIONS— Continued.  Page. 

Property,  when  con.solidated  corporations.     C.  C.  §605 185 

when  incorporated  as  corporation  sole.     C.  C.  §  602 181 

when  incorporated  by  representative  body.     C.  C.   §  604..   184 

Records  of.     C.  C.  §  378 83 

Representative  body,  may  incorporate,  how.     C.  C.  §  604...   184 
Rules,   regulations,   or  discipline  of  religious   societies  may 

govern.     C.  C.  §  599,  subd.  7 180 

REPORTS.      See,   also,   ADVERTISEMENTS. 

Frauds  in.     Pen.   C.   §  564 420 

Unauthorized  use  of  names  in.    Pen.  C.  §  559 424 

RESIDENCE.      See,   also,   ACTIONS. 

Recorded  for  purpose  of  summons.     C.  C.  §1163 234 

RIGHT  OF  WAY.     See,  also, 'eM  IN  ENT  DOMAIN. 

Not  to  be  obstructed  to  navigable  waters.     Const.,  art.  XV, 

§2 25 

Of  corporations.     Const.,  art.  I,   §  14 2 

ROADS.     See,  also,   ROADS,  TOLL;   ROADS,   WAGON. 

Road  companies  not  to  be  cliartered  or  licensed  by  legisla- 
ture.    Const.,  art.  IV,  §  25,  subd.  25 4 

Road  poll  tax,  liability  for,  of  employers.     Pol.  C.  §  2671 310 

ROADS,   TOLL.     See,  also,    ROADS,  WAGON. 

Abandonment  of  road.     Pol.  C.  §  2799 317 

Action  for  penalty  or  trespass.     Pol.  C.  §  2817 320 

Application  of  provisions  of  law.     Pol.  C.  §  2802 318 

Application   for   construction,    and  notice   thereof.     Pol.    C. 

§  2779 312 

grant  of,  by  supervisors.     Pol.  C.  §  2782 313 

hearing  upon.     Pol.  C.  §  2781 313 

special  meeting  of  supervisors  to  consider.     Pol.  C.  §  2780.   312 

when  unnecessary.     Pol.  C.  §  2789 315 

Appraisement   and   award   in   case  of  sale  to   county.     Pol. 

C.    §2801    318 

Automobiles   and  other  horseless  vehicles,   roads   for,   pro- 
visions to  apply.     Pol.   C.   §  2802 318 

Branches  and  extensions.     Pol.  C.  §  2786 314 

Breadth  of  way.     Pol.  C.  §  2784 313 

Bridges  across  streams.     Pol.  C.  §  2791 315 

See,  also.  General  Index,  Bridges  and  Ferries. 
Commissioners,  appointed  to  lay  out  road.     Pol.  C.  §  2782..   313 

compensation  of.     Pol.  C.  §  2785 314 

how  appointed  for  other  counties.     Pol.  C.  §  2783 313 

laying  out  of  road  by.     Pol.  C.  §  2784 313 

Completion  of  road  and  inspection.     Pol.  C.  §  2797 316 

Construction,  character  of  and  requirements.    Pol.  C.  §2793.   315 

County  may  purchase  road.     Pol.  C.  §  2800 317 

Damages  for  use  of  highways.     Pol.  C.  §  2788 314 

Defects  in  road,  report  of.     Pol.  C.  §  2829 321 

Encroachments,  removal  of.     Pol.  C.  §  2815 319 

penalty  for  failure  to  remove.     Pol.  C.  §  2816 319 


GENERAL  INDEX.  849 

ROADS,  TOLL— Continued.  PAGE. 

Fees  for  inspection  of  road.     Pol.  C.  §  2831 321 

Franchise,    expiration    by   limitation,    road   becomes   public 

highway.     Pol.   C.   §  2619 310 

power  of  supervisors  to  grant.     Pol.   C.   §  4041,   subds.   4, 

32,  and  33 369 

Franchise    or    license,    application    for,    when    majority    of 

supervisors  are  interested.     Pol.  C.  §  4323 374 

Guideposts.     Pol.  C.  §  2796 316 

Horseless    vehicles,    roads    for,    application    of    provisions. 

Pol.  C.  §  2802 318 

paths  and  roads  for,   franchises  granted  by   supervisors. 

Pol.  C.  §  4047 372 

Highways,  exclusive  use  of  lands  forming,  damages.     Pol. 

C.  2788   314 

Inspection  of  road  on  completion.     Pol.  C.  §  2797 316 

Lands  acquired  by  grant.     Pol.  C.  §  2787 314 

Map  of  road.     Pol.  C.   §  2785 314 

IVIilestones  and  posts.     Pol.  C.  §  2795 316 

Orchards  and  gardens,  i-oad  through.     Pol.  C.  §  2790 315 

Out  of  repair,  gate  to  be  thrown  open.     Pol.  C.  §  2827 320 

penalty  for  closing  gate.     Pol.  C.  §  2828 320 

Pack  trails.     Pol.   C.    §  2832 321 

Plank  road,  how  constructed.     Pol.  C.  §  2793 315 

not  to  be  constructed  on  road  of  another  company  with- 
out consent.     Pol.  C.   §  2792 315 

Plank  road  companies,  bridge  of,   fast  driving  over,   notice 

of  penalty.     Pol.  C.  §  2938 337 

Prosecution  of  company  for  disobedience  of  notice  for  re- 
pairs.     Pol.    C.    §2830 321 

Relaying  of  road,  material.     Pol.  C.  §  2794 316 

Right  of  way  over  disputed  land.     Pol.  C.  §  2787 314 

tlirough  orchards  and  gardens.     Pol.  C.  §  2790 315 

when  obtained  by  purchase  or  gift.     Pol.  C.  §  2789 315 

Road  companies,  not  to  be  chartered  or  licensed  by  legis- 
lature.    Const.,  art.  IV,   §  25,  subd.   25 4 

Turnpike  roads,  how  constructed.     Pol.  C.  §2793 315 

Sale  of  road  to  county.    Pol.  C.  §  2800 317 

appraisement  in  case  of.     Pol.  C.   §  2801 318 

Toll,  commencement  of  taking.     Pol.   C.   §2798 317 

gates  and  tollhouses.     Pol.  C.  §  2798 317 

taking  without  authority.     Pen.  C.  §  386 417 

persons  exempt  from  payment.     Pol.  C.  §  2814 318 

Width  of  road.     Pol.  C.  §  2793 315 

breadth  of  way.     Pol.  C.  §  2784 313 

ROADS,   WAGON.     See,   also,   ROADS,   TOLL. 

Application  of  title  to  natural  person.     C.  C.  §  523 151 

Articles  of  incorporation  must  also  state,  what.     C.  C.  §  291.  36 
must  be  accompanied  by  certain  affidavit  before  certifi- 
cate  of   incorporation   may   be    issued   by   secretary   of 

state.      C.    C.    §  295 37 

Assessment  of,   for  taxation,  where.     Pol.   C.    §3663 355 


850  GENERAL  INDEX. 

ROADS,   WAGON— Continued.  Paoe. 

Bicycles,  motor  cycles,  and  ottier  horseless  vehicles,   roads 

for.     C.  C.  §  524 151 

Bridges  and  ferries  may  be  maintained.     C.  C.  §  514 148 

See,  also.  General  Index,   Bridges  and   Ferries. 

Capital  invested,  how  repaid.    C.  C.  §  521 150 

Certificate  of  incorporation,  requirements  for.     C.  C.  §  295..  37 

Commissioners  to  lay  out  road.     C.  C.  §  512 147 

Crossings,  how  constructed.     C.  C.  §  513 148 

Defects  in  road,  notice  of.     Pol.  C.  §  2827 320 

Dividends,  percentage  allowed.     C.  C.  §  514 148 

Franchise,    expiring    by    limitation,    road    becomes    public 

highway.     Pol.   C.   §  2619 310 

power  of  supervisors  to  grant.     Pol.   C.   §  4041,   subds.   4, 

32,  and  33   369 

Horseless    vehicles,    construction    of    paths    or    roads    for. 

C.  C.  §  524 151 

paths  and  roads  for,  power  of  supervisors  to  grant  fran- 
chises.    Pol.  C.  §  4047 372 

Map  to  be  filed.     C.  C.  §  513 148 

Out  of  repair,  gate  to  be  thrown  open.     Pol.  C.  §  2827 320 

penalty  for  closing-  gate.     Pol.  C.  §  2828 320 

Percentage  which  must  be  paid  on  stock  subscribed  before 

articles  of  incorporation  can  be  filed.     C.  C.  §294 36 

Property  may  be  mortgaged.     C.  C.  §  522 151 

Rates  of  toll  to  be  posted.     C.  C.  §  516 149 

Repair  of  bridges,  ferries,  and  roads.     C.  C.  §514 148 

Subscription,    amount    required,    to    capital    stock.      C.    C. 

§  293 36 

Toll,  avoiding  payment  of,  penalty.    C  C.  §  519 150 

detention   for   non-payment   of,    not   to   be   unreasonable. 

C.   C.   §518   150 

detention  until  same  is  paid.     C.  C.  §  517 149' 

fraudulently  avoiding,  penalty.     C.  C.  §520,  subd.  4 150 

not  to  be  taken  on  public  roads.    C.  C.  §  515 149 

overcharge  of,  penalty.     C.  C.  §  518 150 

persons  exempt  from  payment.     Pol.  C.  §2814 318 

rate  of,  to  be  fixed  by  supervisors.     C.  C.  §  514 148 

rate  of,  to  be  posted.     C.  C.  §  516 149 

reduction    of,    when    capital    invested    is    repaid.      C.    C. 

§  521 150 

unlawful  taking  of,  penalty.    C.  C.  §  514 148 

Trespasses   upon   property   of   corporation,    penalty.     C.    C. 

§  520 150 

Width  of  road.     C.  C.  §  513 148 

of  road,  common  road.     Pol.  C.  §  2793 315 

SAVINGS   AND    LOAN    SOCIETIES.      See    BANKS,    SAVING 
AND    LOAN. 

SEAL. 

Corporation  may  make  and  use.  C.  C.  §  354,  subd.  3 70 

SECRETARY   OF   STATE. 
Affixing    certificate   and   seal    of   state,    fee.      Pol.    C.    §  416, 

subd.  3  261 


GENERAL  INDEX.  851 

SECRETARY  OF  STATE— Continued.  Page. 

Agent,    notice   of   appointment   of,    fee   for   filing.      Pol.    C. 

§416,    subd.   20 261 

Articles    of    incorporation,    fee    for    filing.      Pol.    C.    §  416, 

subd.  4   261 

fee  for  recording.     Pol.  C.  §  416,  subd.  5 261 

when  amended,  fee  for  filing.    Pol.  C.  §  416,  subd.  10 261 

Bonded   indebtedness,  certificate  of  creation  of  or  increase 

or  decrease  of,  fee  for  filing.     Pol.  C.  §  416,  subd.  11 261 

Certificate  of  incorporation,  issuance  of,  fee.     Pol.  C.  §  416, 

subd.  6  261 

Business,  principal  place  of,   filing  notice  of  removal,   fee. 

Pol.  C.  §  416,  subd.  9 261 

Capital  stock,  certificate  of  increase  of,  fee  for  filing.     Pol. 

C.   §416,   subd.   7 261 

certificate   of  decrease   of,    fee   for   filing.     Pol.    C.    §  416, 

subd.  8  261 

certificate   of   increase   or   decrease  of,   fee   for  issuance. 

Pol.  C.  §  416,  subd.  12 261 

Certificate  of  filing,  any  document,  fee  for  issuance,  unless 

otherwise  provided.     Pol.  C.  §  416,  subd.  16 261 

Certified   copies,   of  any  document,   affixing  certificate   and 

seal  to.     Pol.  C.  §  416,  subd.  3 261 

comparing,  with  original  or  with  copy  of  original  on  file 

in  office.    Pol.  C.  §  416,  subd.  2 261 

copying.     Pol.  C.  §  416.  subd.  1 261 

when  copy  furnished  by  applicant,  fee  for  issuance.     Pol. 

C.  §  416,  subds.  2  and  3 261 

when  copy  made  by  secretary  of  state,  fee  for  issuance. 

Pol.  C.  §  416,  subds.  1  and  3 261 

Comparing  of  copy  of  any  document  with  original,  or  with 

certified  copy  "of  original,  fee.     Pol.  C.  §  416,  subd.  2 261 

Continuance  of  existence,  certificate  on,  fee  for  filing.     Pol. 

C.  §  416,  subd.  13 261 

certificate  of,  fee  for  issuance.     Pol.  C.  §  416,  subd.  14....   261 
Copying    document   or    paper    on    file,    fee.      Pol.    C.    §  416, 

subd.  1  261 

Directors,  increase  or  decrease  of  number  of,  fee  for  filing 

certificate.     Pol.  C.  §  416,  subd.  17 261 

increase   or  decrease   of  number  of,   fee   for   issuance   of 

certificate.     Pol.  C.  §  416,  subd.  18 261 

Dissolution,   order  and  decree  of  court  for,   filing  copy  of, 

fee.     Pol.  C.  §  416,  subd.  25 261 

Name,  change  of,  order  and  decree  of  court,  filing  copy  of, 

fee.     Pol.  C.  §  416,  subd.  25 261 

Trade- mark,  filing  of  claim  to,  and  issuance  of  certificate 

of  filing,   fee.     Pol.  C.   §  416,  subd.   15 261 

See,  also.  Fees;  County  Clerk;  Insurance  Commissioner. 

SECRET    SOCIETIES.       See    FRATERNAL    AND    SECRET 

SOCIETIES. 
SECURITIES.      See,    also,    BONDS    AND    INDEBTEDNESS; 
IV10RTGAGES;    PROPERTY;    TAXATION. 

Assessment  and  taxation.     Const.,  art.  XlII,  §  4 21 

Falsification  of.     Pen.  C.  §  563 425 


852  GENERAL  INDEX. 

SOCIAL     ORGANIZATIONS.       See,     also,     CO-OPERATIVE 
BUSINESS    ASSOCIATIONS;    NON-PROFIT    CORPO- 
RATIONS. Page. 
Directors,  election  of,  certain  conditions  not  to  apply.     C.  C. 

§307 45 

number  of  and  term.     C.  C.  §  290,  subd.  5 33 

Exempt  from  certain  limitations  as  to  land.     C.  C.  §  595 178 

Incorporation  as  co-operative  business  associations.     C.   C. 

§  653b    214 

SPORTING  CLUBS.     See,  also,  CO-OPERATIVE  BUSINESS 
ASSOCIATIONS;    NON-PROFIT    CORPORATIONS. 
Aquatic  sport,    property   may   be   set   aside   for,    by   harbor 

commissioners.     Pol.  C.   §  2524a 309 

STATE.     See,   also,   ATTORNEY   GENERAL. 

Aid    of    private    corporations    forbidden.      Const.,    art.    IV, 

§  22 ? 

Credit   not   to   be   loaned    to    corporations   or   subscriptions 

made  to  stock.     Const.,  art.  XII,  §  13 14 

May    inquire   into   affairs  of   corporation   and    bring   action 

for  dissolution.     C.  C.   §  358 72 

STATE     BOARD     OF     EQUALIZATION.       See     EQUALIZA- 
TION. 

STATUTE  OF   LIIVl  ITATIONS. 

Actions  against  banking   corporations   to   recover  deposits, 

no  time  limit.     C.  C.  P.  §  348 382 

Directors,  in  certain  cases,  no  statute  of  limitations  to  bar 

action  against.     C.  C.   §  309 4G 

Foreign   corporations  must  comply  with  certain  conditions 

before  entitled  to  benefit.    C.  C.  §  406 91 

STOCKHOLDERS.      See,    also,    CAPITAL    STOCK;    ELEC- 
TIONS;  MEETINGS. 
Action  on  amendment  of  articles  of  incorporation.     C.    C. 

§  362 78 

on  continuance  of  existence  under  code.     C.  C.  §  287 32 

on  extension  of  corporate  existence.     C.  C.  §  401 88 

on  renewal  of  corporate  existence.     Const.,  art.  XII,  §  7..  12 

Actions  against,  joint  or  several.     C.  C.  §  322 55 

to  be  brought  within  three  years.     C.  C.  P.  §  359 382 

Admitted  to  corporation.     C.  C.  §  354,  subd.  7 70 

By-  laws,  assent  to  adoption  of.    C.  C.  §  301 42 

may  amend  or  repeal.     C.  C.  §  304 43 

Consent,    written,    and    all    present,    validates    proceedings 

at  meetings,  however  called.     C.  C.  §§  317,  318 52 

Deceased  persons,  representation  of.     C.  C.  §  313 50 

Definition  of  "stockholders."    C.  C.  §  298 38 

term  "stockholder"  as  applied  to  certain  persons.     C.  C. 

§  322 55 

Directors  elected  by.     C.  C.  §  302 42 

election    of,    notice    may    be    waived    in    writing.      C.    C. 

§  302 42 


GENERAL  INDEX.  853 

STOCKHOLDERS— Continued.  Page 

Directors,  increase  or  decrease  of  number  by  stockholders. 

C.  C.   §  290,  subd.   5 33 

may  be  removed  from  office  by  stockholders.     C.  C.  §  310.     48 
must  be  elected  from  among  stockholders.     C.  C.  §  305...     44 
Franchises,    consent    of    two    thirds    of    stock    required    to 

lease  or  transfer.     C.  C.  §  361a 77 

Insane  persons,  representation  of.     C.  C.  §  313 50 

Justice  of  the   peace  may  be  applied  to   to  order  meeting. 

when.     C.  C.  §  311 49 

Liability  of,   constitutional.     Const.,   art.   XII,   §3 11 

no  difference  between  holders  of  common  and  preferred 

stock.     C.  C.   §  290,   subd.   6 33 

under  code.    C.  C.  §  322 55 

when  stock  held  in  representative  capacity  as  security,  or 

by  a  trustee.     C.  C.  §  322 55 

Meeting   of,   amount  of  stock   which   must  be   represented. 

C.  C.  §  312 49 

by-laws  may  provide  for.     C.  C.  §  303,  subds.  1  and  2 43 

held  where.     C.  C.  §  319 52 

representation    of    minors,    insane    or    deceased    persons. 

C.  C.   §313   50 

notice  of,    how  given,    in    certain   cases,   and   waivure   of 

notice.      C.   C.    §§301,    302 42 

validation  of,   however  called,   by  written  assent.     C.   C. 

§§  317,  318  52 

.     voting  power  of  stock  at.     Const.,  art.  XII,   §12 14 

voting  power  of  stock,  cumulative.     C.  C.  §  307 45 

voting  power  of  stock,   when  portion  owned  by  corpora- 
tion.    C.  C.  §  344 67 

who  entitled  to  vote  at.     C.  C.   §  321b 54 

Minors,  representation  of.     C.  C.  §  313 50 

Non-resident,  bond  required  when  stock  transferred.     C.  C. 

S  326  59 

Protection.     See  Appendi.x   Index,    Fraudulent    Reports. 
Proxy,   by-laws   may  prescribe  mode  of  voting  by.     C.   C. 

303,  subd.  3 43 

constitutional  right  to  use.     Const.,  art.  XII,  §  12 14 

right  to  vote  by.     C.  C.  §  307 45 

use  of  at  meetings.     C.  C.  321b 54 

Quorum,  what  constitutes.     C.  C.  §  312 49 

what    constitutes,    by-laws    may    provide.      C.    C.    §  303, 

subd.  2   43 

Stock  owned  by  corporation,  majority  of  remaining  shares 

i.s  majority  for  voting  purposes.     C.  C.   §  344 67 

Two-thirds    interest    required    to    sell    property   in    foreign 

country.      C.    C.    §364 80 

Vote  necessary  on  increasing  or  diminishing  capital  stock 

or  bonded  indebtedness.     C.  C.  §  359 72 

STORAGE    CORPORATIONS.      See    WAREHOUSEMEN. 

SUCCESSION. 

Right  of,  by  corporate  name.     C.  C.  §  354,  subd.  1 70 

See,    also,    Existence. 


854  GENERAL  INDEX. 

SUITS.     See  ACTIONS. 

SUMMONS.      See   ACTIONS. 

SUPERVISORS.    See,    also,    FRANCHISES;    also,    Appendix 

Index,   FRANCHISES.                                                              Page. 
Application  for  franchise,  when  majority  of  board  are  in- 
terested.    Pol.  C.  S  4323 374 

Powers  of,   in   general,    in   relation    to   franchises.     Pol.    C. 

§  4041 369 

in  relation  to  franchises,  additional.     Pol.  C.  §  4047 372 

SURETIES.     See   INSURANCE,    FIDELITY   AND   SURETY; 
also.   Appendix    Index,    BONDS. 

TAXATION.      See,    also,    EQUALIZATION,    STATE    BOARD 
OF;   PROPERTY. 

Capital  stock,  exempt  from.     Pol.  C.  §  3608 346 

national    bank    stock,    shares    are    subject    to.      Pol.    C. 
§§  3608,  3609   346 

Certain    taxes    payable    to    treasurer    of    state.       Pol.     C. 

§  3669 362 

County  rate  of,  basis  for.    Pol.  C.  §  3671 365 

Delinquent  taxes,  controller  of  state  to  sue.     Pol.  C.  §  3670..   364 

Equalization    of,    by   state   board   of   equalization.      Pol.    C. 

§  3692 365 

Income  tax,   assessment  and  collection.     Const.,   art.   XIII, 

§  11 23 

national,    upon  corporations.     See  Appendix  Index,    Fed- 
eral  Income  Tax  Law. 

Legislature    to    pass    laws    to    enforce.      Const.,    art.    XIII, 

§13 23 

License  tax,  annual,  upon  corporations.     See  Appendix  In- 
dex,  License  Tax. 

Property,  subject  to.    Const.,  art.  XIII,  §  1 19 

where  and  by  whom  assessed.     Const.,  art.  XIII,  §10....     23 

Securities.    Const.,  art.  XIII,  §  4 21 

TELEGRAPH    AND   TELEPHONE    CORPORATIONS.      See, 
also,     CARRIERS;     also,     Appendix     Index,     UNITED 
STATES. 
Application  of  provisions  for  co-operative  business  associa- 
tions.    C.-  C.   §  6531 219 

of    provisions    for    non-profit    co-operative    corporations. 

C.  C.  §  653za   230 

Articles  of  incorporation,  what  must  state.    C.  C.  §291 36 

Assessment  of,  for  purposes  of  taxation.     Pol.  C.  §  3663....   355 

Cables,  damage  to.     C.  C.  §  539 155 

Certificate  of  incorporation,  requirements  for.    C.  C.  §  295..     37 

Construction  of  lines  over  public  property.     C.  C.  §  536 155 

Contracts,  cities  of  the  fifth  and  sixth  classes.     See  Appen- 
dix Index,   Municipal  Corporations. 
Charges,    of   telegraph   corporations,    regulation    of   by    the 

legislature.     Const.,  art.  IV,  §  33 6 


GENERAL  INDEX.  855 

TELEGRAPH    AND   TELEPHONE   CORPORATIONS— Contd. 
Franchises.      See,    also,    Appendix   Index,    Franchises,    Mu- 
nicipal Corporations.  Page. 

may  be  leased  or  sold.     C.  C.  §  540 156 

Minors  not  to  be  sent  to  certain  places.     Pen.  C.  §  273e 408 

Monument    to    be    erected    by,    showing   location    of    cable. 

C.  C.  §  539 155 

Property  of,  damage  to,  liability.     C.  C.  §537 155 

malicious  or  willful  damage  to,  penalty.     C.  C.  §  538 155 

may  be  leased  or  sold.    C.  C.  §  540 156 

Percentage  which  must  be  paid  on  stock  subscribed.    C.  C. 

§  294 36 

Rights  of  way.    C.  C.  §  536 155 

Subscription  required  to  capital  stock.     C.  C.  §  293 36 

TERM    OF    EXISTENCE.      See    EXISTENCE. 

TOLL   ROADS.     See   ROADS,   TOLL. 

TRADE-MARKS.        See,     also.     Appendix      Index,     TRADE- 
MARKS. 

Adoption  of,  by  labor  organization.     Pol.  C.  §  3200 342 

Appropriated  for  exclusive  use.     C.  C.  §  991 232 

Are  property.     C.  C.  §  655 231 

Assignment  of.     Pol.  C.  §  3199 342 

Certificate  of  filing.     Pol.  C.  §  3198 341 

Counterfeited    trade- mark,    definition    of    phrase.      Pen.    C. 

§  352  413 

Counterfeiting  of.    Pen.  C.  §  350 412 

Definition  of  phrase  "trade-mark."     Pen.  C.  §353 413 

of  "trade-marks."     Pol.  C.  §  3196 340 

Destroying  or  defacing.     Pen.  C.  §  354 J4 414 

Exclusive  use  of,  how  secured.    Pol.  C.  §  3197 341 

Farm  name  may  be  registered.     Pol.  C.  §  3196a 340 

use  of,  as  trade-mark.     Pol.  C.   §  3196b 341 

Fees    for    filing    with    secretary    of    state.      Pol.    C.    §  416, 

subd.  15  261 

Filing  of.     Pol.  C.  §  3197 341 

Forged  trade-mark,  definition  of  phrase.     Pen.  C.   §352....  413 

Fraudulent  use  of.     Pen.  C.  §  349a 411 

Identical   with  one  already  filed,   not   to   be  adopted.     Pol. 

C.  §  3198 341 

Injunction  against  wrongful  use  of.     Pol.  C.  §3199 342 

Labor  organization  may  adopt  and  use.    Pol.  C.  §  3200 342 

using,  right  of  protection.     Pol.  C.  §  3201 342 

Record  of.     Pol.  C.   §  3198 341 

Refilling    of    casks,    bottles,    or    other    receptacles    bearing 

trade-mark.      Pen.    C.    §354 413 

Selling  or  refilling  casks  or  receptacles  bearing  trade-mark. 

Pen.  C.  §  354>4 414 

See,  also,  Appendix  Index,  Trade- marks. 
Similar   to   one   already  filed,    not   to   be   adopted.     Pol.    C. 

§  3198 341 

Statement  accompanying,  warranted.     C.  C.  §1773 245 


856  QENERAL  INDKX. 

TRADE-MARKS— Continued.  Page. 

United  States  flag,  not  to  be  used.     Pen.  C.  S  310 409 

Warrant  of,  by  sale  of  article.     C.  C.  §  1772 245 

TRAILS.     See  ROADS,   TOLL;   ROADS,   WAGON. 

TRANSPORTATION       COMPANIES.         See.       also,       CANAL 

COMPANIES;    CARRIERS;    RAILROADS. 

Are  common  carriers.     Const.,  art.  XII,  §  17 1.^ 

Discrimination  by,  forbidden.     Const.,  art.  XII,  §21 17 

Passes  to  public  officers  not  to  be  issued.     Const.,  art.  XII, 

§  19 16 

Subject  to  legislative  control.     Const.,  art.  XII,  §17 15 

TREASURER    OF   STATE. 

Action  against,  for  recovery  of  taxes.     Pol.  C.  §3669 362 

Payment  to,  of  certain  taxes.     Pol.  C.  §  3669 362 

Investment    companies,    deposit   of    cash    or    secuiities    by. 

Pol.  C.  §  635b 302 

duty  of,  with  reference  to.    Pol.  C.  §  635d 304 

securities  substituted  for  cash  deposit.     Pol.  C.  §  635f 305 

witlidrawal  of  deposit  by.     Pol.  C.  §  635e 304 

TRUST    COMPANIES.      See    Banks;    also.    Appendix    Index, 
BANKS   AND    BANKING;    EXECUTORS. 

TRUST,      CRIMINAL.       See     Appendix      Index,      COMBINA- 
TIONS. 

TRUSTEES,   BOARDS  OF.      See   DIRECTORS. 

TUNNEL   RIGHTS.      See  MINING  CLAIMS. 

TURNPIKES.     See  ROADS,  TOLL;  ROADS,  WAGON. 

UNDERTAKINGS.     See   SURETIES. 

UNDERWRITERS. 

Incorporation    of,    to    discover   and   prevent   fires   and   save 

life  and  property.     C.  C.  §  453a 109 

Expenses  of.     C.  C.  §  453c Ill 

Members  of,  yearly  statement  required  from.     C.  C.  §  453c.  Ill 

Powers  of.     C.  C.  §  453a 109 

Rights  of  way  of,  when  running  to  fires.     C.  C.  §  453b 110 

Yearly    meeting    of   members,    and   provision   for   expenses. 

C.  C.  §  453e Ill 

UNITED  STATES. 

Flag,    not   to    be    used    for   adv^ertising    purposes.      Pen.    C. 

8  310  409 

Right    of    way    over    public    lands.      See    Appendix    Index, 
United   States. 

WAGON    ROADS.     See    ROADS,   WAGON. 

WAREHOUSEMEN.       See,    also,     Appendix     Index,     WARE- 
HOUSEMEN. 

Fire,  liability  for  damage.     C.  C.  §  1858e 24S 

Penalties  and  liabilities  for  violation  of  law.     C.  C.  §  1858f..   248 


GENERAL   INDEX.  S5Y 

WAREHOUSEMEN— Continued.  Page. 

Property,    advances    made    upon    may    be    sold   after    sixty 

days.     Pol.  C.  §  3156 339 

liability  for  damage  to,  when  stored.     Pol.  C.  §  3155 339 

receipted    for,    must    not    be    removed    without    consent. 

C.  C.   §  1858a 246 

received  by,  may  be  held  for  charges.     Pol.  C.  §  3152 338 

sold   for   charges,    disposition    of   surplus   proceeds.      Pol. 

C.  §  3154 339 

unclaimed,  may  be  sold  for  charges.    Pol.  C.  §  3153 338 

Receipts,  classification  of.     C.  C.  §  1858b 247 

negotiable,  indorsement  of.     C.  C.  §  1858c 247 

non-negotiable,  delivery  of  property.     C.  C.  §  1858d 247 

not  to  issue  until  property  is  received.     C.  C.  §  1858 246 

regulations  for  issue.     C.   C.   §  1858 246 

Storage  corporations,  cliarges  by,  when  regulated  by  legis- 
lature.    Const.,  art.  IV,  §  33 6 

WATER.     See,  also,  WATER  AND  CANAL  COMPANIES. 

Right  to  collect  rates  for.  is  a  franchise.     Const.,  art.  XIV, 

§  2 25 

Use  of,  is  public  use.  wlien.     Const.,  art.  XIV,  §  1 24 

WATER    AND    CANAL    COMPANIES.      See,    also.    Appendix 

Index,  WATER  COMPANIES. 
Canal   companies,   are  common   carriers.     Const.,    art.   XII, 

§  17 15 

crossings,   at  public  highways,   duty  of  company  to  pre- 
pare.    Pol.   C.   §  2694    311 

subject  to  legislative  control.     Const.,  art.  XII,  §17 15 

See,  also,  Carriers. 
Water  companies,  contracts  witli  cities  for  supply  of  water. 

Pol.   C.   §4412    376 

contracts    with    cities,    reservations    and    restrictions    by 

common  council.    Pol.  C.  §  4413 376 

contracts  with  cities,  restrictions  and  regulations.     C.  C. 

§§  548,  549   156 

furnished  free  in  case  of  fire.     C.  C.  §  549 156 

See,  also,  Appendix  Index,   Municipal  Corporations, 
franchises,    granting    of,    by    common    council    of    cities. 

Pol.  C.  §  4410 375 

franchises,  reservation  by  cities.     Pol.  C.  §  4411 375 

See,  also.  Appendix  Index,   Francliises;   Municipal  Cor- 
porations. 

rates  to  be  fixed  by  law.     Const.,  art.  XIV,  §  1 24 

right  to  collect  rates  is  a  franchise.     Const.,    art.    XIV, 

§  2 25 

transfer  of  shares  of  stock  in.     C.  C.  §  324 58 

use  of  streets  by,  for  pipes.     Const.,  art.  X,  §  19 S 

use   of  water   by,    subject   to   state   control.     Const.,   art. 

XIV,  §  1   24 

water  rights  may  be  divided  among  stockholders.     C.  C. 

§  309 46 


37 — CL 


S58  GENERAL  INDEX. 

WATER   AND   CANAL    COM  PAN  I ES— Continued.  Page. 

Water  and  canal  companies,  authority  to  be  obtained  from 

local  government.     C.  C.   §  548 156 

bridges,  construction  and  repair  of.     C.  C.  §  551 157 

crossings,  regulations  concerning.     C.  C.  §  551 157 

delivery  of  water,  regulations  for.     C.  C.  §  549 156 

ditclies,    assessment   of,    for   purposes    of    taxation.      Pol. 

C.  §  3663 355 

fish,  screens  for  protection  of.     Pen.  C.  §  629 429 

lishways  must  be  provided.     Pen.  C.  §  637 430 

liighways  not  to  be  obstructed.     C.  C.  §  551 157 

irrigation,  right  to  use  water  for  is  an  easement.     C.   C. 

§  552  15S 

obligation  to  furnish  water.     C.  C.  §  552 158 

rates  may  be  regulated  by  municipality.     C.  C.  §  548 156 

rates  must  be  reasonable.     C.  C.  §  549 156 

WATER    FRONT. 

Access  to,  not  to  be  obstructed.     Const.,  art.  X\',  S  2 25 

Eminent  domain  exists  in  state.     Const.,  art.  XV,  SI 25 

Tide  lands  fronting  on,  to  lie  witlilaeld  from  grant  or  sale. 

Const.,  art.  XV^,  S3 25 

WATER     USERS.       See     Appendix     Index,     WATER     COM- 
PANIES. 

WHARVES,    CHUTES    AND    PIERS. 

Action,  final,  of  supervisors  on  application  for  construction. 

Pol.  C.  §  2910  334 

Annual  report  to  supervisors.     C.  C.  §  530 153 

Application  of  title  to  natural  persons.     C.  C.  §531 154 

Application    for    construction,    what    to    contain.      Pol.    C. 

§  2907 333 

Authority    to    construct    and    operate,    granted    by    super- 
visors.    Pol.  C.   §  2906 332 

granting  of,   by   incorporated   cities   and   towns.      Pol.    C. 

§  2920 336 

restrictions  on.     Pol.  C.  §  2919 336 

to  take  tolls  for  twenty  years.     Pol.  C.  §  2910 334 

to  take  tolls  must  be  obtained.     C.  C.  §  528 152 

to  use  land  and  water  on  either  side  of  wharf.     Pol.   C. 

§  2912 334 

Cities  and   towns,   incorporated,   granting  of  authority  by. 

Pol.  C.  §  2920 336 

See,  also.  Appendix  Index,  Municipal  Corporations. 
Construction    must   be    commenced    and    completed,    when. 

C.   C.   §  529    152 

must  be  completed  within  two  years.     Pol.  C.  §  2919 336 

Corporate   existence    terminates,    under   certain   contingen- 
cies.    C.  C.   S  529 152 

Dimensions  required.     Pol.  C.  §  2914 335 

Franchise,   application   for,    when   majority   of   supervisors 

are  interested.     Pol.  C.  §  4323 374 


GENERAL  INDEX.  859 

WHARVES,  CHUTES  AND  PI ERS— Continued.  Page. 

Franchise,   power  of  supervisors   to  grant.     Pol.   C.    §  4041, 

subds.  4  and  32   '. 369 

what  constitutes.     Pol.  C.  §  2915 335 

License,  and  license  tax.    Pol.  C.  §  2917 336 

fixed  annually  by  supervisors.     Pol.  C.  §  3378 344 

term  of.     Pol.  C.  §  2906 332 

Operation  must  commence,  when.     C.  C.  §  529 152 

Penalty,  when  out  of  repair.     Pol.  C.  §  2918 336 

Railroads,     authority     to     construct     wharves     and    piers, 

granting  of.     Pol.  C.  §  2921 336 

Repairs.     Pol.  C.  S  2918 336 

Right  of  way,  application  for.     Pol.  C.  §  2908 333 

first  to  be  obtained.     Pol.  C.  §  2913 334 

notice  to  non-resident  owner.     Pol.  C.  §  2909 333 

on  either  side  of  wharf.     Pol.  C.  §  2912 334 

on  overflowed  and  tide  lands.     Pol.  C.  §  2911 334 

Supervisors,  final  action  of,  on  application  for  authority  to 

construct.     Pol.  C.  §  2910 334 

Tolls,  authority  to  take  must  be  obtained.     C.  C.  §  528 152 

rate  of,  how  fixed  by  supervisors.     Pol.  C.  §2916 335 

Wharfage  corporations,  charges  by,  when  regulated  by  leg- 

islatuic.     Const.,   art.   IV,   §33 6 


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